Quality of Earnings and CFO services for fitness clubs
Membership revenue looks recurring until you test churn, prepaid dues, and the capex it takes to keep members. We rebuild earnings club by club and tie the billing platform to the books.
Talk about a deal Talk about the businessReply within one business day · Fixed fee in writing · No obligation
Fitness is in one of its busiest M&A periods
- Fitness saw 44 deals worth $2.1 billion in the first half of 2025, on pace for a record year. Source
- A record 81 million Americans belonged to a fitness facility in 2025, up 5.2%. Source
- Since October 1, 2026, SBA 7(a) acquisitions of $3 million or more need an independent Quality of Earnings, and lenders size the loan on its normalized earnings. The rule explained →
We work with lenders and buyers in Utah, Denver, Phoenix, Dallas-Fort Worth, Boise, Las Vegas, and nationwide.
Monthly churnAverage revenue per memberMember lifetime valueAncillary revenue %Cost per acquisitionRevenue per square foot
Buyers pay for retained members at clubs that don't need a major refresh next year.
What buyers and lenders test in a fitness club QoE
Deferred dues
Paid-in-full and annual memberships recognized over the service period, not when cash arrives.
Enrollment and annual fees
How fees are recognized and whether they're inflating the trailing twelve months.
Churn by club and cohort
Retention from the billing platform, reconciled to the general ledger.
Maintenance capex
Equipment replacement and facility refresh, separated from repairs and normalized.
Leases
Rent, escalators, and remaining terms by club, including straight-line rent.
Unit economics
A P&L by club, so a strong location isn't hiding a weak one.
Fitness clubs QoE: what's included
- Club-level P&Ls
- Billing platform (EFT) to GL reconciliation
- Deferred revenue roll-forward
- Churn and cohort analysis
- Capex normalization and lease review
- Quarterly roll-forward updates through closing (quoted)
Fitness clubs add-ons
| Deferred dues and membership analysis | $2,000 |
| Each location over three | $1,500 |
| Each additional legal entity | $2,500 |
Fees by deal size
| Purchase price / EV | QoE fee |
|---|---|
| Under $3M | $11,500 (sell-side $9,000) |
| $3M to $4M | $12,500 |
| $4M to $5M | $14,500 |
| $5M to $10M | $19,500 |
| $10M to $15M | from $26,500 |
| Lower middle market & PE add-ons | typically $25,000 to $70,000 |
Larger deals are quoted from revenue, entities, inventory, and report format. Pre-LOI earnings screen $1,950. All fees →
Before an LOI, run the seller's numbers through our free add-back sanity check. Terms like SDE, cash proof, and DSCR are explained in the QoE glossary.
Where fitness owners lose money
- Billing platform and books that never reconcile
- Prepaid dues spent before they're earned
- No P&L by club
- Equipment replacement that arrives as a surprise
Priced for your industry
Multi-club operators need club-level reporting and a capex plan to grow, refinance, or sell.
Start with a $2,500 finance diagnostic, credited to your first month. Interim CFO or controller coverage is also available, part time from $10,500/mo or full time.
Books & close
- Monthly bookkeeping and reconciliations
- Accrual close by business day 10
- Monthly financial package
- Quarterly review call
Controller
- Everything in Books & close
- KPI dashboard for your industry
- Payroll, AP, and sales tax oversight
- Quarterly 13-week cash forecast
- Monthly review call
CFO
- Everything in Controller
- Club-level P&Ls and KPI dashboard
- EFT-to-GL reconciliation and deferred revenue
- Capex and refresh planning
- Lender and investor reporting
- Monthly CFO meeting
Fixed monthly fees, month to month after three months. Day-to-day bookkeeping may be done by trained staff working to our checklists, always with CPA review and sign-off by Edwin van Stam. Talk about the right package →
Fitness clubs engagements Edwin has led
- QoE for a multi-club fitness operator, with quarterly roll-forward updates through closing
Includes engagements Edwin performed with prior and affiliated firms. Client names are confidential.
Fitness clubs questions
Does an SBA loan for this kind of acquisition need a QoE?
Under SBA SOP 50 10 8.1, a 7(a) change-of-ownership loan with a business purchase price of $3 million or more needs a Quality of Earnings, and the lender sizes the loan on the QoE's normalized earnings. Below $3 million many lenders still ask for one. Check your deal →
How are prepaid memberships treated in a sale?
Unearned dues are a liability the buyer has to service. They usually show up in the working capital peg or as a price adjustment, so they should be measured before the LOI.
Can you update the QoE if closing slips?
Yes. Fitness deals often take time, and we roll the analysis forward by quarter so the lender and buyer always have current numbers.
Buying, selling, or running a fitness club?
Buying, financing, or selling? Start with a QoE conversation. Running the business? Start with a finance diagnostic.