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RE:  3 Buses Incl. Martial Arts Training & Instruction Contact:  Jack R. Greenawalt Jr.

Quick Facts

Asking Price: $250,000
Annual Revenue: $296,665
Net Profit: Not Disclosed
Cash Flow: $78,446
Total Debt: Not Disclosed
FF&E: 90,000
Real Estate: Not Disclosed
Year Established: 1998
Employees: 13
BBN Listing #: 97544955
Broker Reference #: 2602-16385

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Business Overview:

This business is a turn-key business opportunity that is family owned and supported. Although a Martial Arts background would be a plus, it is not required to take advantage of this excellent opportunity. If you have no related experience, the seller has indicated anyone trainable, athletic, or that has a sports background can be trained in 60 to 90 days (transition period) to be successful and feel comfortable owning and operating the business. All the required information, including marketing materials, website, and detailed programs needed, are available as well as the entire operational systems. Also, purchasing this business provides the buyer with a stable, experienced, and reliable staff of part-time employees. Although the business was impacted by the COVID-19 pandemic like most businesses, the revenue levels have certainly rebounded rapidly in 2021. The evening martial arts segment of the business is currently back to approximately 75% of its pre-pandemic level. That percentage will continue to increase as the amount of prospective student inquiries has returned to normal levels. The 2022 summer camp season was successful and very profitable. The after school program student numbers have also returned to normal. The primary mission of the business is to teach youth students, aged 3 – 9 years old, positive life skills that will help them become successful adults. The skills (concepts) including discipline, control, focus, teamwork, perseverance, and courage are taught in a fun and entertaining way using “edutainment”. The teaching strategy of edutainment allows the instructors to teach children in a way that is fun, creative, and most importantly, successful. The positive life skills developed through martial arts training also positively impact the lives of the business' teen and adult students. All instruction is age-appropriate and age-specific. The programs are divided by age-group (3 & 4 years old, 5 & 6 years old, 7 to 9 years old, 10 to 12 years old, and 13 years and older). Another advantage separating the business from its competition is the use of three late model (2018, 2019, 2020) multi-function school activity buses to transport the children in its after school and summer camp programs. Built to the same rigid specifications as a school bus, these vehicles are the safest transportation available for school aged children. These buses have each been driven less than 10,000 miles and are quite the eye-catcher with their distinctive wraps. They are highly effective billboards on wheels.

The business was founded in 1998 by the current owner who is looking to retire. In 2009, the business moved from its original location to expand into another market. In this new location, the After School and Summer Camp programs were implemented. They have since become hallmark programs that differentiate the business from most other Martial Arts Instructional businesses. Essentially, the business has carved out a unique niche in the industry by providing services that are in high demand and very favorable for both young students and their parents. Due to the community need for the summer camp and after school programs, this business is recession proof.

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Property Features and Assets:

The business operates in an easily accessible location. The very successful and profitable student summer camp is offered for ages 5 to 12. In addition to the exceptionally large training floor, this facility has a separate study and activity area that is used for various purposes during Summer Camp and the After School Program. There are also individual storage areas for the students/campers to store their equipment, lunch, snacks, etc. This facility has approximately 4800 square feet and the rent is $5550 per month. Assets = $126,270

Market Competition and Expansion:

There are other martial arts schools, but they are almost exclusively operated on a part-time basis. The owners of Fear Knot are focused specifically on this business and operate it on a full-time basis. This alone, separates this business from their competition as well as the niche they have developed serving children ages three to nine. This age group accounts for approximately 80% of the revenue. A few strategies for a new owner to grow the business would include some very basic things. For example, the business currently does not advertise. Their business comes primarily from satisfied customer referrals. An advertising/marketing program could be very impactful regarding increased revenue/profits. It would also be an option to increase the hours of operation if desired. The business is currently not open on weekends. Lastly, although the business does have an effective website, a concentrated effort to be impactful throughout social media outlets could be a great way to reach additional potential customers. There are three large school districts involved in the after-school program with parents who have a great desire for quality after school activities. The facility is centrally located in relation to these school districts making it very convenient to pick up their children on the way home from work.

Reason for Selling:

Retirement.

Additional Details:

  • The property is Leased.
  • The owner is willing to train/assist the new owner.
  • This is not homebased business opportunity.
  • This is not a franchise resale opportunity

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