What happens to the CrossFit affiliation when the gym is sold?
The CrossFit affiliation should not be assumed to pass to a buyer with the gym. Affiliate status is a relationship with CrossFit, so ask CrossFit directly who must apply or re-apply, whether the name carries over, and how coach credentials are treated. Your lawyer can advise whether to make a written answer a condition of the purchase.
It is easy to assume the affiliation comes with the gym, so confirm that it does. It may not be. Affiliate status is an agreement between the owner and CrossFit, and a sale can change who holds it. If the name on the door, the members’ loyalty and the coaches’ credentials all lean on that status, find out how it moves before you sign anything.
Ask whether the name and status carry over
Start with the plain question: if this box is sold, does the affiliate status transfer, or does the new owner apply as a new affiliate? Ask the seller what they have been told, then ask CrossFit yourself. The seller’s understanding may be out of date. Get the answer in writing from CrossFit, and keep it in your deal file.
Check who must apply and when
If the new owner must apply, find out what the process involves, how long it usually takes and whether you can apply before closing. Ask whether the box can keep using the name while an application is pending. Do not assume. Fees and terms are set by CrossFit, so ask for them directly, not from the seller.
Look at coach credentials
Coaches hold their own credentials, and some programs expect a certain credential on staff. Ask who currently holds what and whether those coaches intend to stay after the sale. A box with a strong head coach who leaves may lose the thing members came for, so this page on whether the business depends on the owner coaching is worth a read.
Make the sale conditional on it
If the affiliation matters to you, ask your lawyer to make confirmation of it a condition of the purchase, with a clear way out if CrossFit says no. Also consider what you would do with the gym if the name did not come with it.
Related reading
10 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I tell if a fitness studio depends on the owner teaching classes?
- Expert answerWhat costs come with buying a fitness studio besides the price?
- Expert answerWhat does owning a fitness studio involve day to day?
- GuideBuying a fitness studio or gym in Canada
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentLetter of intent and confidentiality agreement for a business acquisition: What clauses should be included?
- 02Business Development Bank of CanadaGovernmentMajor pitfalls to avoid when negotiating a purchase agreement
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04canfitpro (Canadian Fitness Professionals Inc.)IndustryAbout Us - canfitpro
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