Ac 561 Snap Fitness

CVP Analysis

    Fixed costs
    $4,000/month fixed operating expenses
    $2,000/month to lease equipment


This above section is the only part zI d done, it is based off of Snap Fitness



    Snap Fitness "No-Frills" Workout Centers
    Franchise requirements-
        Start-up Costs 
            $60,000 - $184,000
            Grand opening marketing
            Leasehold improvements
            Franchise fees
            Utility/rent deposits
            Training
        Customer fee 
            $24/month
            No contract
            24-hour access
    Research
        Curves, Snap Fitness or Anytime Fitness Rhonda
        Summarized points about entering franchise agreement Rhonda
    CVP Analysis
        Fixed costs
        $4,000/month fixed operating expenses
        $2,000/month to lease equipment
    Variable costs (Estimated to be 2400) 
        Direct Materials

i. Additional Equipment to accommodate increased volume

ii. Wear and tear costs associated with increased volume

    Sales Commissions

i. Increased volume = increased staff = increased commissions

    Bad Debts
    Break-even analysis 
        Snap Fitness needs 350 people to break even
        Fitness Center Variable Costs
            Example 1 (utilities)
            Example 2 (equipment repairs)
            Example 3 (depreciation)
            Example 4 (insurance)
            Example 5 (taxes)
        Target Net Income 
            What monthly sales would be needed to earn $10,000 for the month?
    Conclusion (Summarize the franchise information needed to decide whether entering into a franchise agreement would be a good idea.)