THE SHORT ANSWER
Assess dojo value from collected fulfilled instruction and events after permanent instructor, premises and program costs. Define equipment and actual affiliation/testing rights separately and seek relevant closed evidence. A generic multiple, belt count or mat replacement quote does not establish value. The event illustration is limited arithmetic; it is not annual SDE, EBITDA, a rank outcome or certified appraisal.
Match the method to the actual dojo model
SBA sale guidance describes income, market and asset approaches.
(SBA: closing or selling a business)Select the appropriate method with the advisor. Seek actual closed martial-arts-school transactions matching disciplines, ages, private/group delivery, geography, scale, owner duties, tuition/testing activity, premises and affiliation/asset scope. Record earnings definitions and unknown fields. Broad gym/education samples and asking prices are separate evidence from completed comparable dojo sales.
Do not select an unsupported universal dojo SDE range or an automatic premium from operating age, student contracts or low stated owner hours. Distinguish owner-operator SDE from earnings after permanent teaching and management. Explain source dates, assumptions and included assets before applying a comparison; historic rank records do not resolve continuing economics.
Reconcile tuition and completed testing costs
Trace unique paid students, fulfilled classes, invoices, discounts, credits/refunds and receipts through consistent periods. Separate tuition, testing/events, camps and product activity, including amounts collected for another party. Explain prepaid duties and actual accounting treatment with the accountant.
| Invented completed-and-paid testing-event group | Assumption/result |
|---|---|
| Completed paid participations assumed | 30 |
| Assumed realized receipt per participation | $40 |
| Specified event receipts | $1,200 |
| Distinct specified instruction/testing costs | −$400 |
| Distinct specified materials/certificate costs | −$200 |
| Distinct specified facility/payment costs | −$100 |
| Remainder after these specified costs | $500 |
Review actual testing/program authority and costs separately. This illustration does not imply every participant passed, a rank is recognized by another organization or the whole dojo earns this margin.
Include instructor work and defined program assets
Map owner teaching, preparation, assessments/testing, scheduling, events and administration with the coverage worksheet. Reconcile instructors/providers, preparation/cover, management, premises, supplies, association/franchise/provider charges, insurance, software/payment and shared costs. Support adjustments with the earnings bridge; avoid removing every owner salary or renovation expense or deducting existing payroll twice.
Use the consent register for actual brand, curriculum/material, affiliation, testing/rank-recognition, student/payment and premises conditions. Have counsel and responsible counterparties assess permitted future use and proposed buyer requirements. Verify mat/equipment/stock ownership, liens, condition and investment. Avoid adding equipment, build-out or goodwill already included in the chosen comparison.
Separate claim evidence and protected obligations
FTC advertising guidance requires truthful claims and supporting evidence.
(FTC: advertising FAQs for small business)Review actual support and qualification for claims about instruction, self-defense or other program benefits with appropriate professionals. Do not invent student success, guaranteed health/safety outcomes or a future renewal rate to support value. Historic participation and observed progress are separate from promised future results or automatic price premiums.
FTC security guidance addresses necessary access and protected information handling.
(FTC: protecting personal information in business)Use approved aggregate/redacted student evidence with professional review of sensitive child/family, personnel and assessment/incident records, notices, permitted access and migration; an NDA alone is insufficient clearance. Assign prepaid classes, testing/events, credits/refunds, promised materials and provider balances through the delivery guide. Compare closing cash, conditional terms, continuing work and investment on the defined scope. Educational tools do not issue a certified appraisal.
Owner questions
What martial-arts multiple is established here?
This guide does not substantiate a universal range; match actual closed evidence on disciplines/programs, earnings and included rights/assets.
Are testing fees pure profit?
Reconcile completed collections with instruction/testing, materials, facilities and other applicable costs and duties.
Do rank records establish future renewal?
Historic participation and rank information are separate from paid continuity, future student choice and permitted program/record rights.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- SBA: closing or selling a business
Valuation approaches, sale agreements, assets and ownership transfer.
- FTC: advertising FAQs for small business
General truthful advertising, express/implied claim substantiation and clear qualification guidance. Not validation of tutoring outcomes, an education approval, franchise earnings disclosure or transaction-specific compliance clearance.
- FTC: protecting personal information in business
Information inventory, necessary access, authentication, encryption, service-provider oversight, retention and incident planning. General security guidance; not an M&A privacy-law compliance certification.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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