Spa with 80% Recurring Revenue and 800+ Memberships
Passive Ownership and Established Staff of 26!
This franchised day spa offers passive ownership and an established staff of 36 including 1 manager, 1 assistant manager, and 2 team leads to run day to day operations! This establishment has over 800 active memberships and a monthly revenue made up of 80% recurring revenue meaning it has everything necessary to continue on their current growth path. Located in Iowa, clientele from surrounding areas can enjoy services including massage therapy, skin care, body wraps, spa packages, men’s treatments, waking, lash application and more. In addition to 800 memberships, services are offered to non-members without the membership deals and pricing. Many spa and self-care related businesses were affected greatly in covid. Because of this, it is important to note that even with this location having been closed for two months in 2020, they saw an increase in revenue and profit. Continuing on this growth trend, they saw a jump in cash flow over $100,000 from 2020 to 2021. A new owner would have all of the assets needed to continue on this uphill profit trend!
This day spa works with clients of all ages from the surrounding towns and counties. Pricing was raised at the end of 2021, though many members were grandfathered in for the 2022 year. Starting in 2023, this will be an automatic additional $7K+ per month in revenue. Based on the revenue for 2021 that would add up a total of $1,498,503 in revenue and based on the current profit margin of 18% that bumps the cash flow up to $269,730 only including current expected price changes, not including any new customers in the coming years. They have an edge over the competition with their attention to detail, number of services provided, price point, and doing their best to provide a real resort feel just right around the corner.
The attractive price of $845,000 allows a buyer to see a return of $132,724 in the first year after debt payments! This location is seeing incredible year over year growth with no sign of slowing down.
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Omaha, NE 68114
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