How do I check whether a CrossFit gym makes money before buying it?

Whether a box makes money is not a yes or no question you can answer from a listing. Gyms look similar from the street and differ a great deal underneath. The useful approach is a set of checks that show where the money comes from and what it depends on. Ask for the records first, then test them against what you can see.

Match the membership roll to the bank deposits

Ask for the current member list, with plan type and start date, without personal details if the seller prefers. Compare it to the monthly deposits in the statements. Then ask how many members have left in a typical month. A gym that adds members but loses nearly as many has a different story from one that keeps people for years.

Separate owner labour from the business

Many owners coach most of the classes and pay themselves little. Restating owner hours at a market wage may show lower earnings than the statements suggest. Ask who coaches which classes and what each coach is paid, and ask your accountant to restate the profit with a fair wage for the owner’s work.

Look at the revenue mix

• Recurring memberships, which are steadier.
• Drop-in visits and class packs, which rise and fall.
• Personal training, which often rides on one coach.
• Events, courses and merchandise, which may not repeat.

Account for equipment replacement

Barbells, rigs and rowers wear out. Ask what has been replaced lately and what will need replacing soon, since you will pay for it after closing. This page on the costs that come with buying a fitness studio lists more to ask about.