Building a Smooth Exit: Expert Guidance on Selling Your Fitness Studio

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Selling a studio is a complex and personal process. Did you know that 80% of studio sales do not reach their full value due to a lack of preparation? In a recent BFS Live Fireside Chat, Katy Richardson, founder of Neighborhood Barre, and Allison Sapka, former owner of several Club Pilates locations, shared their insights and best practices. From finding the right buyer to communicating with your community, their insights offer essential guidance for any studio owner considering a sale.

Strategic Partnerships: Katy's Path to Expansion

Katy’s journey with Neighborhood Barre began in 2015, with a gradual expansion to 20 locations. During the pandemic, interest in wellness increased, prompting Katy to explore partnership opportunities. Ultimately, she chose an investor aligned with her vision in franchise support and operations, ensuring franchisees feel supported and empowered. For owners contemplating a partnership, finding a compatible investor is essential. Choosing a partner who shares your goals will establish a strong foundation for a smooth transition and enduring success.

Selling in a Shifting Market: Allison’s Approach

Allison’s decision to sell her Club Pilates locations was influenced by the rise of consolidators—larger companies purchasing franchises to expand. Recognizing favorable market conditions, she saw an opportunity to benefit from higher sale prices. If you’re considering selling, stay informed about market trends. Strategic timing and positioning can help maximize your studio’s value and align with industry shifts.

Lessons from Selling a Studio

1.  Clarity, Support, and the Power of a Strong Network

If you are ready to sell, remember the importance of protecting your business and supporting franchisees. Additionally, focus on the necessity of setting clear goals and maintaining due diligence. Consequently, a key takeaway from their discussion is the significance of having clarity on desired outcomes, as well as establishing a strong support system. Whether it’s through a trusted team member or a skilled broker, having a robust network can greatly ease the transition and, ultimately, help achieve business objectives.

2. Communication During the Acquisition

Clear communication is critical during an acquisition. You can follow the example of studio owners who focused on maintaining stability rather than making a big announcement, allowing them to navigate the change smoothly. This approach prioritizes continuity for clients and staff. For owners planning to sell, keep communication steady and emphasize a seamless transition. A stable environment often reassures clients more than a grand announcement, making the process smoother for everyone involved.

3. Selecting the Right Franchise Partners

Studio owners have identified the challenge of finding franchise partners aligned with their brand’s values. To gain insights into prospective partners, they explore tools like personality assessments. If you’re considering this approach, looking beyond business skills to shared values can strengthen your foundation and support future growth.

Selling a studio isn’t just about closing a deal; it’s about choosing partners who align with your vision and keeping your community’s spirit alive. Owners can navigate a smoother transition by prioritizing strategic partnerships, staying attuned to market trends, crafting a clear communication plan, and selecting aligned franchise partners. Katy and Allison’s insights highlight that a well-considered approach can preserve your studio’s mission and legacy for the long term.