For Sale: Profitable, Fast Growing Cycling Studio
Sports Club Advisors has been engaged to sell an established, profitable, fast growing cycling studio. The studio operates one location in the heart of highly desirable city in the Southeast. The city has great demographics and a population of over 500,000.
Our client makes working out a luxury experience. Riders experience high end finishes, a boutique retail store with the studio’s own branded apparel, outstanding service, and receive an uplifting, high energy workout. However, unlike Soul Cycle and Flywheel which are notoriously expensive (Soul Cycle costing over $30 per class, not counting $2 for water and $3 for shoe rental), this boutique spinning studio provides a similar fitness experience for between $10 and $22 per class. Classes are available in 5, 10, 20 class packages, or unlimited monthly membership.
This boutique spinning studio comes with an experienced management team, instructors, bikes, an advanced sound system & DJ equipment, and proven business systems. The business also includes a line of branded riding apparel and accessories that are sold in the studio’s retail store.
Location: The studio occupies 2,200 square feet of leased space on the ground floor of a newly built building. There are four options to renew the lease for additional terms of 3 years each.
Membership: In 2016, the studio had over 6,900 riders. Revenue and membership have grown consistently year-over-year for the last 5 years.
Financials: In 2017 the business expects to generate revenue of $519,000 and Seller’s Discretionary Earnings (SDE) of $173,900. EBITDA for the same period is expected to be approximately $102,000. The asking price is $399,000, or only 2.3x SDE.
Management Team & Staff: The studio has a full-time general manager and a staff of 13 part-time instructors.
Reason for sale: Our client has operated the studio in his spare time with a full-time general manager handling day-to-day operations, but the owner recently received a promotion that required he move out of state so he has decided to sell the studio.
If you have dreamed of owning a profitable, high-end cycling studio, this could be the opportunity for you.
Want to Learn More?: Additional information is available to qualified principals upon receipt of a signed nondisclosure agreement. For more information, contact Rich Jackim at 224-513-5142 or at rjackim @sportsclubadvisors.net.