Anyone here invest in health clubs/gyms?

[Account Closed]

Anyone here invest in health clubs/gyms and/or is familiar with the industry from a real estate investing standpoint? I've got loads of questions for you...

[Joel Owens]

Did you end up buying that new gym?

Gyms if national brands tend to do okay. If it is franchisee and not parent corporate then look to whether single or multi unit operator. Look if personal guarantee on the lease and really high net worth. I see lot's of gyms go out of business. If they are run right they can make lot's of money but just like food it's all about the product and the operator.  

Gyms a key metric are membership levels and residuals. If a gym gives month to month cancel anytime with specials then cash flow heavily fluctuates but expenses are constant. Look at percentage of income with gym membership versus residuals ( personal training income, selling of supplements and vitamins, special event classes,etc.).