What should I check before buying a cheer gym?
Check when in the all-star season the sale would close, what team and competition fees families have already paid, which travel and event commitments you would inherit, how closely coaches and choreography are tied to the teams, and whether the building suits stunting.
A cheer gym runs on a season. Teams are formed, choreography is built, competitions are booked and families pay in stages. A sale that closes in the middle of that cycle hands you promises the previous owner made and money that was collected for work not yet done. Timing, fees and people matter as much as the building.
Where the sale falls in the season
Ask the seller to lay out the whole season: when tryouts happen, when teams are set, when competitions run and when the year ends. Ask your lawyer and accountant whether the timing of closing within a cycle matters. If the sale must happen mid-season, talk to your lawyer about how work in progress and customer obligations are handled between you and the seller.
Fees collected and commitments made
Ask what families have already paid for teams, uniforms, choreography, travel and entry to events, and what has been spent against it. Ask for a list of competitions and trips already booked, with deposits and cancellation terms. Your accountant can help you work out how prepaid money should be treated in the deal, so you do not end up delivering a season someone else was paid for.
Coaches, choreography and the teams
Find out which coaches lead each team and what ties them to the gym. Parents often follow a coach before they follow a name on the door. Ask who owns the choreography and music cuts and whether outside choreographers were hired on terms that continue. Meet the coaches, with the seller’s consent, before you decide.
Space for stunting
Stunting needs ceiling height and a floor made for it. Ask for the dimensions, the condition of the floor and mats, and the maintenance records. Review the lease for how long it runs, whether it can be assigned and whether your use is permitted.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernment13 terms you need to understand before signing your commercial real estate lease
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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