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Health Clubs/Fitness Center Business Valuation Formula:

Valuing Fitness Centers: This is a general business valuation formula or method for independent Health clubs and Fitness centers based on a percentage of annual gross revenues that can be used to help determine an approximate value and asking price to market an existing health club.

Health Club/Fitness Center Business Valuation Formula: Approximately 100% of annual gross sales.

Broker Comments: I have been involved in listing a few health clubs for sale over the last 12 years and the major factors in my opinion that buyers generally review closely is the amount of electronic monthly memberships fees collected, the terms of the lease, and the condition, brand, and age of the fitness equipment. Some buyers also prefer to make offers based on a multiple of the monthly membership dues which can be as high as 10 times.

Need a business valuation or appraisal for legal, personal, or selling purposes? Request a free & confidential  consultation about your established health club or fitness center here.
Note: Always contact and consult with a Business Broker, Business Appraiser, or financial adviser who is familiar with the dynamics of your local market and economy because conditions for establishing an asking price for a health club business can vary based on a wide variety of factors.