Healthcare, Education & Personal Services · Seller readiness

Selling a Gym & Fitness Studio business

Published · Reviewed by The Diligence Standard Team · Updated

Owners should organize membership cohorts, churn, pricing, instructor economics and lease terms and separate owner coaching from enterprise profit.

How the business works

Membership retention, trainer/instructor dependence, rent, capacity and customer acquisition determine value.

Issues to resolve

  • Member count is overstated
  • Owner coaching hours are not normalized
  • Churn is not cohort-based
  • Lease renewal is unresolved
  • Class economics are not measured

Evidence to request and reconcile

  • Membership billing data
  • Cohort churn
  • Class attendance
  • Payroll/contractor instructor cost
  • Marketing CAC
  • Lease/equipment schedule

Decision questions

  • How many members are actively paying today?
  • What is 12-month cohort retention?
  • How much revenue follows the owner or top instructor?
  • What prepaid-service obligations transfer?
  • Can the site support growth without major CapEx?