What should I check before buying a pilates franchise studio that is for sale?

You have already decided on a franchise, and this studio is for sale. The question now is what you would actually be taking over. A resale unit comes with an existing agreement, existing equipment and members who have paid in advance. Each of those can be checked before you commit, and the franchisor is often involved in all of them.

Ask about franchisor approval and the remaining term

Many franchisors require approval of a buyer, so check the franchise agreement. Ask the seller and the franchisor what that approval involves, how long it takes and what training you must complete. Then ask how much of the current agreement is left, and what renewal would look like. A short remaining term changes what you are buying. Your lawyer can tell you whether disclosure documents apply to a resale.

Find out who owns the reformers

Equipment is a big part of a pilates studio. Ask for a list of reformers and other apparatus, and whether each item is owned outright, financed or leased. If it is financed, ask whether the lender or lessor must consent to the transfer, and whether the franchisor requires you to replace or upgrade equipment on a schedule.

Trace prepaid packs and memberships

Members may hold class packs and memberships paid before the sale. Ask for the outstanding balance, and ask who honours it after closing and how the deal accounts for it.

Look at the instructor pipeline

Studios depend on certified instructors. Ask how many are on staff, who trains new ones and how the franchisor supports that. If one instructor draws most of the loyal members, plan for what happens if that person leaves.