
 Acquisitions Anonymous - #1 for business buying, selling and operating
 Acquisitions Anonymous - #1 for business buying, selling and operating KidStrong Franchise Deal: Smart Buy or Overpriced Risk?
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 Oct 3, 2025  Delve into the analysis of a $5.1 million portfolio of KidStrong gyms in Texas. The hosts evaluate its valuation and whether this youth fitness franchise is a smart investment or fraught with operational challenges. They discuss the financials, including revenue and EBITDA, and explore the implications of geographic dispersion between Austin and Houston. With insights into potential underperforming units, they weigh the risks versus rewards and determine a fair price in light of management hurdles. 
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Verify SDE vs EBITDA
- Check whether the seller quoted SDE or EBITDA before valuing a deal and adjust the multiple accordingly.
- Confirm owner salary and add-backs to convert SDE to true EBITDA for financing and valuation decisions.
Confirm SBA Eligibility Early
- Always check the SBA franchise registry to see if a franchise is eligible before assuming SBA financing is available.
- If the concept lacks owner discretion or is controlled tightly by franchisor, SBA may refuse eligibility.
Plan Financing Around Your Involvement
- If you plan to be a passive investor, expect conventional (non‑SBA) financing hurdles and disclose your intended involvement early.
- Consider franchise-focused lenders like Apple Pie Capital for SBA-lookalike financing when SBA isn't used.
