Good price, solid returns, but something underneath isn’t right.
This fitness studio in Tampa, Florida is listed at $299K, generating about $850K in revenue and $157K in cash flow.
At first glance, this looks like a strong deal. Low price, solid revenue, and healthy cash flow for a business this size.
And when you run the numbers, it mostly holds up.
Deal Snapshot
Let’s break it down using a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $111K per year.
That’s strong for a deal at this price point.
Where This Gets Interesting
The valuation actually looks clean.
- Fair pricing: 2.03x multiple, right in line with industry.
- Low revenue multiple: 0.35x vs ~0.65x average.
- High DSCR: Plenty of room to service debt.
- Fast payback: Strong return relative to upfront cash.
This is exactly what a lot of buyers are looking for on paper.
The Real Issue
The margin is doing all the damage here.
- Low profitability: 18% vs ~32% industry average.
- Cost pressure: Likely high rent, payroll, or inefficient operations.
- Limited pricing power: Harder to raise prices in competitive fitness markets.
- Fragile cash flow: Small margin changes can hit profits quickly.
You’re making money - but you’re working a lot harder for it than you should be.
Risk Profile
The industry has stabilized, but it’s not risk-free.
Default rates peaked around 3.4% in 2020 and have since dropped to under 1%.
That recovery is a good sign - but fitness businesses are still sensitive to churn, competition, and local demand shifts.
Who This Is For
This deal works - but only if you know how to fix what’s underneath.
- Operators: Someone actively managing costs and performance.
- Fitness insiders: Buyers who understand retention and pricing.
- Optimizers: Someone who can improve margins quickly.
If you can’t improve margins, you’re capped.
BizHub Verdict
This deal scores an 8.0 / 10.
Strong cash flow, fair pricing, and excellent financing metrics.
But the low margin is the weak point - and if you ignore it, this deal will disappoint.
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