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Annual turnover

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  • Mandate: 34754
  • Added: 23 Jul 2021
  • AFS
  • 405

Body 20 Gym

Gauteng, Johannesburg
405
Mandate 34754
Added 23 Jul 2021
R 880,000* ZAR
Stock: R 10,000
Assets: R 839,557
R 4,193 ZAR
Deon van Tonder
(PRINCIPAL)
Aldes Badu
Gauteng, Randburg
Gauteng, Randburg
Summary

A stronger, fitter you in only 20 minutes per week

SELLING PRICE AFS
R 880,000* ZAR
Stock: R10,000
Assets: R839,557
R 4,193 ZAR
Summary

A stronger, fitter you in only 20 minutes per week

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How long has the business been established?
3 years

How long has the owner had the business?
Since 2018

What is the Franchise opportunity about?
A Stronger, fitter you in just 20 minutes per week. Body 20's holistic approach to technology- powered workouts. Tone up, lose fat, gain muscle and get fit fast.

How long has the Franchise group been establised for?
Body20 is the brainchild of South African entrepreneur and fitness enthusiast Bertus Albertse, who started his first EMS gym at 24. Realising the powerful benefits behind the revolutionary EMS technology, Bertus secured enough capital to open his first EMS studio in 2013. One year later, Bertus turned his business into a franchise network and the Body20 brand was born. Today there are over 52 Body20 studios countrywide. Body20 has a global footprint allowing international entrepreneurs to capitalise on the growing success of the Body20 brand.

How many existing franchisees are there in the group and for how long have they been operating?
52 Studios

In which provinces/ areas are the existing franchisees located in?
Spread over the entire South Africa. Expanding to Mauritius , USA and Europe

What is the success of the current franchisees?
People prefer the smaller boutique gyms due to Covid-19 . It is currently on the rebound to the extremely profitable pre Covid-19 levels. The have also achieved the following accolades: 2017 Newcomer Franchisor of the Year 2018 Franchisee of the Year 2018 Finalist in 5 out of 6 categories ( Brand builder, Job creator, Franchisor & Franchisee of the year)

How does the business operate on a daily basis?
Clients are welcomed into the gym. They are individually taken to change clothing. An In Body Assessment is done for each client. InBody is an express body assessment tool that establishes a baseline to accurately track your performance and monitor your progress throughout your Body20 training regime. The assessment looks at various factors including weight, body mass index (BMI), body fat percentage, lean muscle mass, and other biometric information. InBody also monitors muscle imbalances and identifies critical areas to target during your Body20 workout for better results. Your personal trainer takes you to the studio and starts an individualized training program based on your assessment and needs. Progress is reported . Other holistic offerings are offered. Client completes the training and books their next session. Studio and equipment is sanitized for the next client. Various administrative functions are completed through the day.

How are the clients attracted to the business?
Franchisor marketing , internet based and referrals Word of mouth. Owner printing media and social media marketing. The appeal of a stronger, fitter you in only 20 minutes per week attracts potential members. Expertly designed lay out of the studio appeals to the clients. The strategic membership pricing model retains members through additional offerings.

What Advertising/Marketing is carried out?
Franchisor and Franchisee electronic media, printed media and social media.

Does the business have any contract work?
Clients are offered 24 months, 12 months and no minimum period. Income stream for the franchise is build up out of a mixture of the above and available for final due diligence.

What competition exists?
In a broader sense any other fitness centre can be viewed as competition. However looking at the niche market of boutique gyms or personal training programs there are very few that can compete with the holistic offering of this franchise. Training with the Body 20 system is growing due to the following facts: Rapid results can be achieves in just 20 minutes a week. Specific muscle groups can be targeted with customized muscle recruitment intensity The technology used in Body20's personal training system is safe Active results tracking with assessments and consultations Completely holistic approach with our Body20 for Life Program. Clients also benefit from: World class equipment Convenient locations Affordable memberships Well trained staff Free leisure time Progress & Performance monitoring Self booking mobile application Wellness coach consultations Nutrition & Lifestyle plans from 24/7 Nutrition doctor

What are the seasonal trends?
A slight increase late winter for those clients who want the perfect summer body. The balance of the year fairly stable with a slight decrease mid winter.

How is income derived?
Membership fees and the sale of other holistic offerings

How does the franchise operate on a daily basis?
Clients are welcomed into the gym. They are individually taken to change clothing. An In Body Assessment is done for each client. InBody is an express body assessment tool that establishes a baseline to accurately track your performance and monitor your progress throughout your Body20 training regime. The assessment looks at various factors including weight, body mass index (BMI), body fat percentage, lean muscle mass, and other biometric information. InBody also monitors muscle imbalances and identifies critical areas to target during your Body20 workout for better results. Your personal trainer takes you to the studio and starts an individualized training program based on your assessment and needs. Progress is reported . Other holistic offerings are offered. Client completes the training and books their next session. Studio and equipment is sanitized for the next client. Various administrative functions are completed through the day.

Does the Head Office assist in securing contracts (if applicable) or is it up to the individual franchisee's to do this?
Head Office is responsible for brand awareness and has a referral system for visitors to their websites to refer potential members to the appropriate franchisee based on location. The individual franchisee is responsible to secure its own members.

What advertising and marketing is undertaken on a group basis and what is the individual franchisee expected to do?
Franchisor and Franchisee electronic media, printed media and social media.

How did the Covid-19 pandemic impact the business turnover / daily operations?
The initial reaction on the Covid-19 first lockdown had an immense impact . The subsequent lockdowns lessor so. People prefer the smaller boutique gyms due to Covid-19 . It is currently on the rebound to the extremely profitable pre Covid-19 levels.

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The physical environment of the gym (due to the fact that there are a maximum of 2 members in any given session) makes it possible to adhere to all Covid-19 regulations and ensure the safety of members. In fact this has become a marketing differentiator from other fitness centres and is actually attracting public who desires safe physical activity

Is the business VAT Registered?
Yes

What VAT documentation is on file?
All relevant VAT documentation

Are there up-to-date Management Accounts available?
Available on request

What percentage of the business is cash/credit?
Monthly eft, cash payment or full upfront payments for contracts and vouchers All services are paid upfront.

What is the age analysis of the debtors book?
All services are prepaid, so no debtors

How could the profitability of the business be improved?
Increased effective marketing and activations

Is Seller finance available and for what amount?
No

What is the total staff complement?
Total number of employees 3 2 Trainers 1 Admin/ trainer

Give a breakdown of staff/ functions/ length of service?
Head trainer since November 2018 Trainer since February 2020 Trainer since May 2021

Do any receive special perks or incentives?
No

Are they on contract?
No

Do any have management potential?
Head trainer has Management potential

How involved is the Owner in running the business?
Strict control over all financial matters. Operational oversight

Any special arrangements for the staff related to the Covid-19 pandemic?
No

When does the current lease end?
30 April 2023

Is there an option of renewal & what period?
Extension of lease needs to be negotiated as per section 61 of the lease agreement. The lease agreement will be available for final due diligence

What is the annual escalation %?
8% Escalation per Annum compounded

What are the trading hours?
5h30-20h00 Mon-Fri 7h00-14h00 Saturday

What is the square meters of the business?
78 square meter

Is a copy of the lease available?
Yes

Do you require a licence?
No

What lease deposit and/or other surety is required?
A deposit of R 41 917,73

What are the main assets of the business?
Electromuscular stimulation(EMS) equipment. Inbody 20 monitors.

Are any items not included in the sale?
Please comment

What is their overall condition?
Excellent , well maintained

Do any require repairing?
No

How have they been valued ?
Book value

Which assets are on lease/HP and with whom?
None

What are their settlement amounts?
N/A

Will Seller settle or Buyer to take over?
N/A

Are copies of agreements available?
N/A

Are they presently insured?
Yes

Strengths?
Low staffing and small space requirements Low investment requirement that includes operating cashflow and fast break evens Earn subscription revenue . Low overheads Powerful systems that work for your fitness, business, member. Self-booking App,listen360 & Fran connect Automatic Client Management Systems Extended Franchise & Staff training curriculum-Onboarding Program, Training Academy, BIZFIT and more. Lifestyle Orientated Opportunity

Weaknesses?
2018 FRANCHISEE OF THE YEAR There is a consistent focus on improvement Currently no marketing manager for the mall

Opportunities?
One of the fastest growing fitness opportunities globally Boutique gyms experience a preference of choice by clients during covid-19 restrictions New ownership networks Perfect time for marketing activations to boost leads New marketing initiatives with the new marketing manager of the mall More work from home employees in the area can boost daytime membership training

Threats?
Client unpredictable behaviour on Covid-19 lockdown restrictions. Slowdown in the economy

What is the reason for the sale?
Owner emigrating

Why is this a good business?
A new franchise would cost the investor Build +/- R 320 000 Licence R 172 500 Equipment +/- R 460 000 Other +/- R 176 500 Total R1 129 000 The asking price for this franchise is R 870 000 which is 77% of a new franchise This business is already achieving operational breakeven. The time value of money is already on your side. The option to buy this entity as a sale of shares might prove advantageous from a tax perspective. An excellent franchise in a good location.

What is the price plus stock and the profit?
Asking price R 870 000 Stock R 10 000 Profit R 325 000 (2021)

How are Projected turnovers and profits calculated?
The profit projection is based on the following assumptions: Estimated Premises Size Requirement 70-90Sqm Number of Memberships Approaching Capacity 200 Type of Package Subscribes -1 year Package (R1200) R 1020 Total Subscription Revenue Per month R 204 000

What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
Fix monthly Royalty calculated at an amount of R 5 000 per month exl Vat Escalation 10% per annum on the first of March each year. 2018 - R 5 500 2019 - R 6 050 2020 - R 6 655 2021- R 7 320.50 Flat rate

What extra marketing and advertising should a franchise budget for?
Body20 has fully equipped activation kits and paraphernalia available to order on the online store. In addition, you are required to contribute 2% of gross sales to the national marketing fund, subject to a minimum contribution of R2 000 per month and 3% of gross sales are allocated to local marketing initiatives, subject to a minimum contribution of R3000 per month.

What assets are included in the purchase price?
EMS Equipment Weights & Strength equipment Medsci InBody machine Shop Fittings IP Licence Key Surveillance Cameras 2* UPS for EMS equipment Asset register available on final due diligence

Is the franchisor supplying all assets or can the franchisee source these items himself?
Full turn key offer

Is stock supplied with the initial franchise setup (if applicable?)
The stock on hand at the time of sale will be included

Will stock purchases be solely from franchisor in the future or can the franchisee pruchase from other suppliers?
Most items are branded so most are sourced from the franchisor

How many staff members are required to successfully operate the franchise?
3

What training is provided for new franchisees and staff members? Is there a cost associated with this?
Current staff is trained and operated on franchise standards. Yes there is a cost associated for additional and ongoing training Body20 Online Video Tutorial Training & Quizzes: Online training videos are available to ensuring your staff receive adequate training to deliver the Body20 experience. Each Franchisee is Provided with a Dedicated Onboarding Coordinator & Franchise Relationship Manager (In-Studio Training & Studio Excellence Review) Ongoing Monthly Global Power Hour and Online Training & Workshops to Connect, Communicate & Collaborate FAB Team – Franchise Advisory Board

Where will training take place and for how long?
Covid-19 restrictions permitting at the Bryanston office

What support and backup is offered to the franchisee?
1. Bookkeeping All network partners will use SageOne package for invoicing and inventory control. You are required to appoint an approved accountant service for your studios financial reporting requirements. Your accountant will need to ensure that your books are up to date at all times. They will require access to the respective SageOne accounts and you will need to ensure that your studio has all it’s financial transactions properly recorded 2. HR Services We will provide each studio with an Employee Handbook that will spell out the Body20 policies and procedures. As the policies and procedures might change from time-to-time, we will ensure that studios and the staff are adequately informed. We will also provide each studio with a standard Body20 legally binding employment contract for their employees to sign. We can recommend HR specialist consultants who will consult with owners and employees in times of “difficulty” and who will ensure that owners are informed to deal with problem HR situations. These consultations will be for the cost of the owner. We will ensure that staff salaries, wages, commissions are documented for employee and employer records and payment. We will ensure that PAYE and UIF payments to SARS are posted on studio Internet bank sites for payment by owners. In addition, employee vacation and sick leave will be recorded according to the HR policies 3. Financial Management Your selected and approved accountant will be required to provide financial reporting on your monthly performance compared to your budget. Reporting will inform Global and studio owners of any discrepancies highlighted through the bookkeeping function or other possible financial or legal contraventions. The accountant service will need to include the drafting of monthly and annual Financial statements, income tax calculations and submissions, etc. Owners who require advisory services such as tax consulting, are required to consult their own specialist.

Does the franchise have to be owner operated?
No can be manager run

What type of premises do a new franchisee require to operate the franchise?
N/A to this offer. Full turn key of ready established studio

Can the franchise be operated from home?
No

Will the franchisor assist in identifying or acquiring premises and will assistance be provided with negotiating the lease on behalf of the franchisee?
N/A to this offer. Full turn key of ready established studio

How many franchises will be allocated to each Area/ Province?
There is a minimum of 5 km radius for each studio

Will upgrades to the premises be required and if so how often will this occur?
No upgrades for the foreseeable future

What skills and background is the franchisor looking for in a prospective franchisee?
Sales and marketing abilities A passion for business and fitness A high standard of people management and communication skills The willingness to learn and acquire new skills An entrepreneurial, enthusiastic, positive attitude

Is there any industry regulations or licenses needed to operate the franchise?
No

Strengths?
Low staffing and small space requirements Low investment requirement that includes operating cashflow Fast break evens Earn subscription revenue Low overheads Powerful systems that work for your fitness business- member Self-booking App, listen360 & Franconnect Automatic Client Management Systems Extended Franchise& Staff training curriculum- Onboarding Program, Training Academy, BIZFIT and more Lifestyle Orientated Opportunity

Weaknesses?
2018 FRANCHISEE OF THE YEAR. There is a consistent focuse on improvement

Opportunities?
One of the fastest growing fitness opportunity globally. Boutique gyms experience a preference of choice by clients during Covid-19 restrictions

Threats?
Client unpredictable behaviour on Covid-19 lockdown restrictions Slowdown in the economy

What is the full purchase price of the franchise (incl VAT)?
Asking price R 870 000 All stock is included The admin and on-boarding fee, which is currently R25k Ex VAT, will only apply

Does the franchisor offer finance?
No

How many months working capital will the franchisee require?
The Franchisor recommends a R120 000 cash flow for this type of studio

When will a franchisee be able to start drawing profits from the franchise?
The current offer has achieved operational breakeven . This can be verified in a final due diligence

How much unencumbered cash is needed from prospective franchisee?
Purchase price R 870 000 Cash flow R120 000 The admin and on-boarding fee, which is currently R25k Ex VAT, will only apply.

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AGENCY DETAILS

Aldes Badu

1 members
5 mandates
Gauteng , Randburg
40 Silver Pine Avenue, Moret, Randburg, 2194
Randburg

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