Buy a Gym: Verify Collected Revenue, Staff and Funded Membership Duties

Verify member and service revenue on consistent periods

Describe actual services, access, locations, entities and proposed assets or equity scope. Sample agreements, invoices, access/service periods, discounts, pauses/cancellations, payment failures, chargebacks, refunds and receipts against accounts and cash. Explain timing and unresolved balances. Do not multiply every registered account by an advertised fee or count a package sale and fulfilled session twice.

Use the gym evidence guide for source limits and a member-cohort illustration. Define unique paid-active members, initial cohort, departures, new members and ending total consistently. Test renewal, training/class demand and fee changes as assumptions rather than assuming recurring billing guarantees retention or a universal customer cap controls risk.

Verify permanent staff and recurring costs

Reconcile management, coaching/instruction, reception, sales, scheduling, cleaning and maintenance to actual people, schedules, payroll/benefits, contractors and service periods. Include premises, utilities, insurance, marketing, software/payment, supplies and franchise/provider costs where relevant. Explain actual owner duties and omitted recurring work through the coverage worksheet and the earnings bridge.

Verify qualified available staff and permanent capacity after temporary seller training. A named trainer, planned manager or owner working fewer hours is separate from funded coverage. Review proposed employment/provider arrangements with responsible advisors rather than assuming staff, classifications or certifications carry over automatically.

Inspect equipment and resolve actual operating rights

FTC franchise guidance highlights costs, controls and transfer/renewal questions.

Review actual current franchise agreements and proposed buyer terms with counsel and the franchisor. Record fees, training, required improvements, term and approval conditions. For independent operations, establish actual brand/program/material, website and provider rights separately.

Inspect equipment appropriately, verifying ownership, leases, liens, condition, service history, allowed use and necessary investment. Use the consent register for equipment, membership/corporate, staff/provider, payment/software and premises use/rent/assignment/renewal conditions. Have counsel and responsible authorities review buyer/site permissions, renewal/cancellation/payment authorization, liability, notices and insurance questions. Neither historical operation nor equipment on site proves every buyer right.

Fund cash timing and protected service obligations

SBA acquisition guidance encourages review of investment and operating costs.

Model payroll/providers, collection timing, rent, fees, equipment investment, required improvements, financing and reserves alongside price. Test lower collections, unavailable trainers and approval delays transparently. Review actual lender conditions using the financing guide. Assign who performs and funds prepaid access/training/classes, deposits, refunds, receivables and provider/payroll balances through the delivery guide.

FTC security guidance addresses necessary access and protected information handling.

Begin with approved aggregate/redacted evidence. Have privacy/legal advisors assess member/personnel records, permitted access, notices, custody and migration; an NDA alone does not permit uploading sensitive identifiable files. Future member choice and attendance require separate assumptions from the historic roster.