Fully describe the business's activities?
This independent and family oriented fitness Centre/Gym offers a wide range of services like circuit and weight training and aerobics. They also have squash court.
How long has the business been established?
The business was established in 1993.
How long has the owner had the business?
The current owner purchased the business in 2004.
How does the business operate on a daily basis?
The business opens early to accommodate clients wanting to exercise before work and closes late to accommodate clients training after work. They employ professional trainers to assist clients on the circuit and to provide fitness assessments and health advice.
How are the clients attracted to the business?
Clients are attracted to the gym through the website/internet and by referrals (they offer incentive compensation), walk-ins, etc. They offer contracts at a discount as well as daily and weekly pricing.
What Advertising/Marketing is carried out?
Promotions are advertised on social media. They offer sponsorships and donations to charity organisations. Pamphlets are handed out on Saturdays.
Does the business have any contract work?
Clients are signed up on annual and two-yearly debit orders.
What competition exists?
The closest similar facility is 5km away and expensive for the average client.
What are the seasonal trends?
Even though clients exercise less in winter, they do not cancel their membership and the income therefore stays stable. They also have new clients signing up in winter.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT returns are on file and will be made available during Due Diligence.
Are there up-to-date Management Accounts available?
Management accounts up to January 2018 are on file and available on request.
What Balance Sheet and Income Statements are available?
Financial statements for 2017 are available on request. AFS 2018 should be available in forseeable futures.
What percentage of the business is cash/credit?
Membership fees are paid via debit order or cash. Unpaid D/O's are collected by lawyers with no cost to the business.
What is the total staff complement?
Total staff complement 20.
Give a breakdown of staff/ functions/ length of service?
General Manager (12 years), Maintenance Manager (6 years); 1 X Receptionist; 1 Administrative person (6 years); 6 X group instructors (+- 10 years average) 1 X Floor Instructor (1 year) Sales X 2 (10 years & 5 years) Other X 7 (fairly new)
Do any receive special perks or incentives?
No special perks/incentives.
Are they on contract?
Only new staff i.e 7 are on contract
How involved is the Owner in running the business?
The owner spends time at the gym on a daily basis.
When does the current lease end?
The lease ends July 2022.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
04:30 - 22:00 Monday - Thursday 04:30 - 21:00 Friday 07:00 - 17:00 Saturday 08:00 - 17:00 Sunday 08:00 - 15:00 Public & School Holidays
What is the square meters of the business?
Is a copy of the lease available?
A copy of the lease is on file and will be made available during due diligence.
Do you require a licence?
Only a 3rd party policy is required.
What lease deposit and/or other surety is required?
+- R144 825
What are the main assets of the business?
Debit order database.
Are any items not included in the sale?
All items are included in the sale.
What is their overall condition?
All equipment is being refurbished.
How have they been valued ?
Which assets are on lease/HP and with whom?
Switchboard with Nashua.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Buyer to take over.
Are copies of agreements available?
Yes, and will be made available during due diligence.
Are they presently insured?
All assets are insured.
Is a full asset list on file?
A full asset list is on file and will be made available during due diligence.
The gym is well established and well-known in the area. They are centrally located with ample free parking. They offer great value for money.
Equipment is slightly outdated. Income subject to seasonality.
The squash court is new and will attract new clients.
What is the reason for the sale?
They have had the business since 2004 and feel it's is time for a change. They have other business interests that they wish to pursue.
Why is this a good business?
The business offers good cash flow because of the Debit Order system.
Annual Turnover Amount between R 500 thousand and R 6 million