Fitness System Franchisor for sale

Santa Fe, NM (Santa Fe County) (Relocatable)

DVBB Studio
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Asking Price: Get Financing: $500,000

Established: 2012

Fitness System Franchisor for sale

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Asset Sale Description

Patented fitness system franchisor for sale

This is a unique business opportunity for a person who recognizes that it is an incredible offering and can provide some management talent and effort.
Da Vinci BodyBoard, LLC (DVBB) has spent five years developing and refining a unique fitness system that has enjoyed significant success both inside and outside the U.S. (especially Asia). The basic product is manufactured in China and distributed by a fulfillment company in Los Angeles. This short video gives a glimpse of what we have – cut and paste:

The offering in a nutshell:
A 50% interest in the company is being offered for $500,000 (with terms possible for the right buyer who can provide outside security). A controlling interest might be possible through negotiations with the other 50% owner. The business could easily be worth many times this evaluation in a single year. Instead of paying this much to buy a franchise, you can buy half a company that sells franchises. (Selling franchises is where the big money is, not in owning one.)
The company has orders on the books and licensing agreements in Asia which cover all fixed costs for the foreseeable future, so that any domestic sales of studio licenses, home boards, videos, and/or certifications should be pure profit.
The company has licensed a company in South Korea to manufacture and sell in that country, paying us $40 for each board sold and $50 for each certification sold. Manufacturing locally saves considerable import taxes that would otherwise be due. We received about $50,000 in licensing fees in 2017. The government of South Korea is planning a program to make its citizens the fittest people in the world, and plans to open 10,000 studios featuring the BodyBoard (because of its low cost and complete physical work-out capabilities). At our current licensing agreement, if they carry out these intentions, we would be due $4 million plus additional certification revenue.
The company has recently executed an agreement with a person who has considerable experience creating and marketing fitness videos (both for home use and for certifying trainers). This person has agreed to finance the entire venture with a loan of $100,000 with the understanding that the first monies gained will go toward paying back his loan. We will own 61% of this company and he will own 39%. We expect that revenue from videos might be a significant part of future profits.
Company headquarters is currently in Santa Fe, where a flagship studio was set up in the summer of 2017. The studio is operating at a profit, as is the company as whole (primarily from Asian licensing, product sales, and certification income). The Santa Fe operation serves as a training site for certifying trainers as well as a demonstration studio for potential franchisees (licensees). It is run by the company founder, Floery Mahoney, who spends about half her time outside Santa Fe promoting the company. It is possible to relocate company headquarters anywhere in the country, most probably where the franchise sales operation is set up.
My name is Terry Allen. I live in the middle of nowhere in Vermont. I am Floery’s step-father, and I have essentially been the bank which financed this operation as we went through several manufacturers who let us down over the years until we found a good one in China. I am almost 80 years old and would like to retire one of these days to do some traveling (I publish a newsletter on options investing from my home, and I am divesting of that as well). I plan to sell my 50% interest in the company to a person I believe would make a good business partner for Floery. I recognize that I am offering my interest at far less than its intrinsic value, but finding the right partner for Floery is more important to me than maximizing what I get out the sale.

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Detailed Information

Reason for Selling:
80-year-old owner wants to retire
Business Website:
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Asset Sale Listed By:
Terry Allen

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