What are the simple mistakes that sellers of gym and fitness franchises are getting wrong?

These are the things that are having significant impact on their ability to generate the strongest return for their efforts.

 

Once again, Dustin Slypen, a business broker with 200+ transactions in the wellness niche and in fitness and gym franchises in particular, outlines these crucial components to a successful sale.

 

The four key components that were covered are;

• Sellers often won’t put their ‘buyers hat’ on,
• A lack of planning around their lease of the business’s property,
• Undervaluing the modernisation requirements of the franchise brand on the change over of owner depending on the cycle in the business,
• Where the owner IS the business and by default, goodwill.

0:00 Intro

0:40 The sellers not putting a buyers ‘hat’ on

1:38 Selling a business is not like selling a house

2:06 What does it look like to ‘put the buyers hat on’ in a fitness or gym franchise?’

3:23 Sellers to keep selling a secret and what impact does this have on staff

4:07 Not planning around the lease

6:07 Lease is scary for many people as they don’t understand it, so engage a specialist

6:46 Undervaluing the modernisation requirements in a gym or fitness business that is selling

7:29 Thinking about prices from years ago as a vendor when they bought the business - but it’s not the reality

8:28 Potentially the selling franchisee thinks that might be able to avoid updating the business equipment and fit out on a sale

8:52 What is the ‘normal’ requirement for modernisation in a gym or fitness franchise and what’s the difference between each business type

9:49 Are gym owners trying to extend the life of equipment or are they re-investing?

10:57 The positive impact of a modernised business

11:27 The challenge of the owner ‘being’ the business in a services business as the effective ‘goodwill’

13:11 Wrap-up

 

 

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

 

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