Basketball Training Facility (Absentee Run w/Recurring Income)

This is a tremendous opportunity to own a well established and highly successful basketball training facility that boasts a loyal customer base and recurring revenue model. This first class training center is located in the heart of a prominent Los Angeles sub-market and specializes in offering elite basketball training that’s targeted towards the youth demographic.

The business generates income through a variety of class packages, memberships, and retail opportunities. The primary revenue streams consist of hosting weekly development training, as well as organizing a multi-week league for members of all ages to participate in (ranging from K-12). The programs are meticulously designed to nurture talent and empower the members to achieve their personal sporting goals, all while doing so in a vibrant and enjoyable environment. As a result, the brand posseses a strong community presence and enjoys a stellar reputation amongst its members for offering great customer service, quality classes, friendly staff, and clean facilities.

One of the most attractive features of this business is that it operates under a subscription model that delivers continuous cashflow. The training subscription auto-renews for members every month, and there is minimal turnover due to the high customer satisfaction, so the new owner will stand to inherit a consistent and recurring source of revenue from which they can build upon. Additionally, the low maintenance business model affords the owner a passive income stream and plenty of location freedom so that they can operate the business remotely, which is nearly impossible to replicate in many other industries.

Additionally, the business is operated on a completely absentee basis with no active involvement from the current owner. Detailed systems were established at the outset so that the business would be capable of running smoothly without their presence being required. A highly qualified operations manager handles all of the day to day duties and heads up a well trained group of passionate instructors who are dedicated to providing personalized coaching to all training participants. A postive and relaxed company atmosphere has been fostered over the years which has led to great team retention and very low turnover. This skilled team of professionals are committed to the continued success of the business and will serve as a huge asset under the new owner.

Since its inception in 2019 the business has experienced exponential revenue growth, seeing a 46% YOY increase in 2022, 22% YOY increase in 2023, and is trending to increase another 28% for 2024. The incredible growth pattern is the result of increasing capacity so that the facilities could accommodate a greater number of members. At present, the business is boasting a membership base of around 300 individuals, all of which have been acquired purely through organic means. The loyal and engaged customer base has allowed the business to enjoy consistent membership renewals and an abundance of referrals, ensuring a steady revenue stream. The owner maintains very clean financial records, so obtaining SBA loan approval shouldn’t pose any significant challenges.

The monthly rent is very favorable for the space at just $5,941. The low rent obligation aids in ensuring minimal overhead costs and maintaining robust margins. Approximately 1.5 years remain on the existing lease, but the term can be extended upon landlord approval, which will provide the new ownership with both stability and flexibility for strategic planning and long-term growth initiatives.

All of the necessary systems and operational infrastructure have already been implemented by the existing ownership. With strong financials, loyal clientele, and a thoroughly proven business model, this opportunity presents an ideal chance for an investor to step seamlessly into a thriving operation and continue building upon the foundation that has already been established.