How to Sell an Anytime Fitness Franchise Business

Sell an Anytime Fitness Franchise Business

Are you an Anytime Fitness franchisee? If so, it helps to understand the value of your business, especially if you are putting together an exit strategy and considering selling. This review discusses how you can sell your Anytime Fitness franchise business. We also go into detail on how to determine the value of your business. 

About The Anytime Fitness Franchise

Anytime Fitness is a franchise that specializes in exercise and fitness facilities. There are approximately 2,300 Anytime Fitness franchise businesses in the U.S. The average cost of an Anytime Fitness membership is $41 in the U.S. ($53 in Canada). However, pricing largely depends on the location of the individual business. As more people return to the gym in a post-pandemic world, Anytime Fitness franchisees could see an increase in revenue and profit. There is competition within the fitness industry. However, the brand name recognition of Anytime Fitness allows it to generate more sustainable business than many small, locally-owned fitness facilities. 

How to Value an Anytime Fitness Franchise Business

We cannot stress enough the importance of working with an expert to determine the value of your business. A business broker understands the business valuation process and can help you determine fair market value for your Anytime Fitness franchise business. There are also different types of valuations. However, in general, determining your business value involves a review of your financial information, rule of thumb data, and intrinsic value considerations. 

Gather Your Financial Information

Financial records are not far from the only consideration during a business valuation. However, your financial reports are essential and the primary focus for potential buyers. To determine your value on the open market, you will need to gather the following financial information and provide them for your business broker: 

  • Federal tax returns for the past three years
  • Profit and loss (P&L) statements 
  • Balance sheets
  • Equipment list
  • Lease information

 

If the sale includes your commercial property, you will also need to provide a copy of the real estate appraisal. This quick list is not all-inclusive. There may be additional documents you need as well. Your business broker can provide you with a list of what they need to determine the value of your Anytime Fitness franchise business.

Use Rule of Thumb Data (Acquisition Multiples)

Rule of thumb data, also called acquisition multiples, are commonly used to formulate a tentative valuation for Anytime Fitness franchisees. This takes into consideration the averages from recent sales, along with your seller’s discretionary earnings (SDE), earnings before interest, taxes, depreciation, and amortization (EBITDA), and your net sales. Here is the rule of thumb data:

  • Anytime Fitness franchise businesses sold between 2.32 to 2.64  times the Seller’s Discretionary Earnings (SDE)
  • Anytime Fitness franchise businesses sold between 0.53 and 2.23 times the annual net sales
  • Anytime Fitness franchise businesses sold between 2.87 and 4.08 times the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

Consider Your Unique Value

The best business brokers consider other factors that do not appear in financial reports but are still considered by potential buyers. This includes factors such as your company’s management, future earning prospects, capital structure, and more. Your reason for selling may play a role as well. Of course, your location also plays a role in your value; Anytime Fitness franchise businesses in metro areas are worth more on average than those in rural areas. 

The Sales Process for an Anytime Fitness Franchise Business

It helps to have a general understanding of the sales process. The sale process for an Anytime Fitness franchise business can be divided into three main stages.. These stages are planning and preparation, marketing and negotiations, due diligence and closing. 

Planning and Preparation

Your business broker can help you decide the best time to sell your business (not every franchisee should go to market immediately). Also, your franchise agreement with Anytime Fitness may include requirements that must be met for you to sell your franchise. You should understand your franchise agreement and clear all hurdles before selling. 

Additionally, you may need to develop a sales memorandum. This provides an overview of your business that prospective buyers will review. Lastly, you will need to prepare all of your financial information. This includes tax returns, profit and loss (P&L) statements, revenue sheets, and more. Although the preparation stage is more time-consuming than you may desire, it is essential to ensuring a successful sale without delays or major setbacks. 

Marketing and Negotiations

Next, your business broker will find a buyer. This involves leveraging networks, databases, and connections to field as many competitive and qualified offers as possible. Your broker also screens the offers and handles all negotiations (along with your input). Additionally, the broker maintains the confidentiality of the sale. This means news of the sale is kept private, so your business operations are not disrupted. 

Due Diligence and Closing The Sale

Due diligence is the last step before the sale closes. During this stage, you will need to provide requested documents and financial data to the buyer. Your attorney, CPA, and business broker can assist you with this process. Once due diligence is complete, you can schedule a meeting to close the sale. 

During closing, you and the buyer’s attorneys review the purchase agreement and the business is transferred. The transfer may take multiple steps and may continue beyond closing. This is especially the case for Anytime Fitness franchisees due to their franchise agreement. Once everything is complete, the buyer can continue (or wrap-up) their exit strategy. 

Speak With a Business Broker at Sigma Mergers and Acquisitions

Are you ready to sell your anytime fitness franchise business? If so, then the brokerage experts at Sigma Mergers and Acquisitions can help you do exactly that. We have helped hundreds of business owners sell, and we are here to guide you through the process as well. Your sale starts with a business valuation. We offer free, no-obligation valuations for Anytime Fitness franchisees. Schedule a consultation to get started.

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Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.

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Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

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