Ten Tips For Buying A Curves Franchise For Sale
Curves is a popular fitness franchise for sale on USABizMart. This all-women gym has unique opportunities and challenges that you should know before you buy a Curves franchise.
Here are some tips for buying a Curves franchise. They come from Lisa Valentine, a Maryland business broker who has been a Curves franchise owner. She’s now a business broker who has sold over thirty Curves franchises in the past two years. She has helped buyers all over the country buy a Curves franchise for sale.
1. Buyers and Sellers Both Need Representation
Most buyers don’t get representation. They underestimate the time that is needed to sell a franchise. If the seller has a broker and will be fair to the buyer, but they represent the seller’s interests and so she is loyal to the seller. A buyer needs an advocate too. A third party can say things to the seller that a buyer would never be able to say.
2. Know What You’re Buying
It’s your responsibility to know before you buy exactly what you are buying. You must ask. Sometimes it’s hard to know what to ask because you don’t even know what you don’t know. That’s where a business broker can help. When buying a Curves franchise you are buying cash flow not memberships. The number of memberships changes daily. Look for stability in membership, not specific numbers. What percentage of members drop their membership and after how long? What is the retention rate?
3. Curves Should Be Owner Occupied
Curves franchises are very hands-on. The owner needs to be involved in the operations of the business for its success. At first the new owner should expect to spend double the time they think it will take to run the business. They should plan on working ten to twelve hours a day, seven days a week. After the first six months you should be able to go into maintenance mode. At that time you can be away from the gym more and rely on staff to run more of the business.
4. Location Is Important for a Curves Franchise
It’s not vital that the Curves be located in a prime spot. It does have to be able to be found easily though. Many are located in strip malls. Just watch that the rent is not too high.
5. Give Back to the Community
Curves are about building community. The vast majority of Curves owners give back by getting involved. They get exposure but most do it for get the rewards they get of helping to improve not only their health, but the health of their community.
6. Hire Enthusiastic Staff
Your staff should be well-trained in how the weights and equipment work. They need to know the weight loss plan and how to weigh and measure. Employees need be enthusiastic and motivating. Since Curves involves doing the same circuit over and over women get bored. They help mix things up, plan and implement competitions, membership drives, and find other ways to engage others. Most employees are hired part-time and cover shifts. They are often Curves members who are retired and they do it more for the free membership and interaction than for the money.
7. Look for Ways to Cut Expenses
Is rent too high? Can you cut down on payroll? Can you save on your phone expenses? Valentine looks for ways to increase the profits of the Curves franchise for sale. She does it by lowering expenses and increasing memberships.
8. Ways to Finance a Curves Franchise
The best way to finance a Curves franchise is a cash purchase, but that’s not realistic for most buyers. Most buyers have never owned a small business and this is their first experience buying a Curves. Some utilize the equity in their home with a home equity loan. If you are financing the business, always ask the seller to finance part of the purchase price. Finally, SBA financing and lending is an option to finance a Curves franchise.
9. Sell your Strongest Curves Location
Many times Curves owners who own multiple locations sell their weakest one. This is the opposite of what you should do. Instead sell the strongest location and focus on improving the other(s). You have a better chance of getting a higher price on both.
10. Find a Curves for Sale on the Internet
Lisa noted the effectiveness of using the Internet to find a Curves for sale. It’s a buyers market right now but that may not always be the case. Next year Curves announced they will retrofit gyms with new equipment. Each member will get a card that tells them when they are in their target range of resistance. As gyms get the new equipment demand will rise and sales will too. Now is a good time to buy a Curves for sale while prices are low. Type in the keyword “Curves” at http://www.usabizmart.com/keyword.php to find a Curves franchise for sale right now (before prices go up).
© Peter Siegel, MBA - All Rights Reserved
www.USABizMart.com
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About The Author: Peter Siegel, MBA is the Founder & Principal of USABizMart.com – USA Businesses For Sale, two of the most popular business for sale related websites on the internet. He is also the author of three books on the topic of business sales and business buying. The most current book is "Businesses For Sale - How To Buy Or Sell A Small Business". Mr. Siegel also writes a daily Business For Sale Blog – at www.USABizMart.com/blog that covers all topics on selling, buying, valuing, and financing businesses.
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