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QUESTION: I am interested in purchasing an Anytime Fitness franchise in an area of Virginia that is not only very near an expanding military base, but also abuts three suburban communities, numbering close to a total population of 60K people, if not already surpassing this number.  The nearest competition in terms of a gym are the local rec centers and YMCA, and from what reports I've heard, not only are they not 24/7 operations, but they overcharge and to put it kindly, their equipment and facilities are on the whole unsatisfactory.  

I am interestedin writing a letter to an SBIC, either in my area, or one that that would be interested in investing in what appears to be a well received business (#6 in this year's Entrepreneur's top 10) as I would need to cover a good portion of the required start-up costs.  Do you have any ideas whom I should approach, or if this is a good idea for me?  Also if you do think this is a good idea, what are some tips that I could use in drafting my initial letter to such an individual or company.  I appreciate any help you can give.  Thank you so much.

ANSWER: Hi,

This sounds like it may be a good fit for the area, but there are lots of factors that must be looked at...not just financing.

However, if you don't have a decent net worth, the franchise company may not look at awarding you a franchise at all.

Figure $300k minimum net worth along with $50k in liquid capital.

Have you contacted Anytime Fitness yet? You may want to make sure that you qualify.

If you need more help, I do free 15 minute phone consults every Friday.

Look- http://www.thefranchiseking.com/category/free-call-fridays

Joel Libava

 

---------- FOLLOW-UP ----------

QUESTION: Thanks, sir.  Actually I already contacted Anytime and after I explained how much liquid capital I can get, they approved me to the next stage, their real estate department.  

I still wanted to know if you had any advice about drafting a letter to a potential SBIC.  Would you be able to help me there?

Answer
Hi,

That's fantastic!

For your letter, here's what to do:

Contact your nearest SBDC. They offer free services to startups. Someone there may be able to help you draft a strong letter.

Here- http://www.sba.gov/tools/local-assistance/sbdc

Good luck!

Joel Libava

Franchising

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Joel Libava

Expertise

If you are thinking about getting into franchising, and want to learn all you can, I'll be happy to answer general questions on franchising; From how to find the right one, to how to do the proper research, and how to protect yourself from scams. I only offer straightforward franchise advice. I'm not going to try to sell you anything. I've written well over 1,500 articles on franchise ownership. Other places that my articles on franchising can be found include Small Business Trends, Entrepreneur.com and SBA.gov.
Please check out my guaranteed franchise ownership advisory services.

Experience

Cleveland, Ohio based franchise ownership advisor, and the author of "Become A Franchise Owner! (Wiley Publishing) I specialize in teaching people how to find, research, and buy a franchise-safely.

Publications
Book- Become A Franchise Owner! (Wiley Publishing) eBook- The essential Steps To Researching A Franchise eBook- How To Carefully Select And Properly research A Franchise The Franchise King.com The New York Times The Huffington Post Corpnet SBA.gov SBA.gov Small Business Trends Open Forum.com AllBusiness.com Entreprenuer.com Small Biz Daily.com Spin Sucks

Education/Credentials
Brush High School Cleveland State University OSBT

Awards and Honors
Awesome Judge Award- 2011-2013, Small Business Influencer Awards Numerous awards for The Franchise King Blog

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