Dive into the intriguing world of a $2.6M boutique wellness franchise in Manhattan! Connor and Heather dissect its financials, revealing impressive gross revenues and cash flow. They debate the appeal of its passive income claims while unpacking the unique challenges of assisted stretching facilities. The discussion covers everything from customer retention strategies to the complexities of managing workforce dynamics in a bustling urban landscape. Don't miss their insights on navigating SBA loan hurdles for aspiring franchise owners!
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volunteer_activism ADVICE
Validate Wellness Franchise Stickiness
Validate the concept's stickiness before buying a wellness franchise.
Ensure it produces lasting customer retention and results to avoid uphill challenges.
insights INSIGHT
One-to-One Labor Works Profitably
The boutique assisted stretching concept works despite a one-to-one labor model.
High customer retention and efficient small-space real estate enable profitability.
insights INSIGHT
Owner Involvement Affects Valuation
The premium valuation depends heavily on the owner's level of involvement and effectiveness.
Marketing and managing churn critically impact the business's quality of life claim and cash flow.
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Connor and Heather break down a $2.6M Manhattan boutique stretching franchise, debating its “passive” claims, premium valuation, and if the trendy concept will stand the test of time.
Business Listing – https://www.bizbuysell.com/business-opportunity/network-of-3-passive-boutique-wellness-centers-in-nyc/2308977/
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In this episode, Connor Groce and Heather Endresen take over the podcast to dive into a unique franchise resale: a network of three boutique assisted stretching studios in Manhattan, listed for $2.6 million. With gross revenues of $3.6M and cash flow of $536K, the business boasts an executive management model, minimal COGS, and strong recurring membership revenue — all packed into under 1,500 sq ft per location.
Key Highlights:
- Asking price of $2.6M on $536K cash flow, with $3.6M in revenue - Three boutique stretching studios across Manhattan with heavy foot traffic - Less than 1% COGS, but dependent on 1:1 labor model and younger staff - Established in 2022 under a fast-growing wellness franchise brand - Potential SBA financing hurdles for wealthy buyers due to liquidity rules - Connor admits he underestimated the business model back in 2019 - Both hosts worry about concept longevity vs. paying a premium multiple
Acquisitions Anonymous - #1 for business buying, selling and operating