Michael Knoll
Santa Fe, NM (USA)
Role(s):
Founder/Owner/Principal
Anytime Fitness
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Startup
Location:
North Las Vegas
Industry:
Sports/Recreation
Year Founded:
2007
Number Employees:
1-10 people
Description:
Anytime Fitness is a 24-hour fitness center providing top of the line cardio and strength equipment, personal training, tanning and massage. I have two locations. The first one is in Santa Fe, NM, it opens July 15, 2008, and it is almost halfway to its break-even point. (The writing of this message is July 13, 2008.) The break-even point is approximately 550 members and I am currently at 240 in presales. I anticipate to be breaking even at the end of August, 2008. The second location is in Farmington, NM where construction is 50% complete and can be open in two months. In both Santa Fe and Farmington, Anytime Fitness will be the only 24-hour fitness facility in the city and will have a state of the art security system.
Several months ago I had verbal approval for SBA loans for construction and exercise equipment for each location. The contractors began construction in both places based on this verbal approval from SBA. Then, after several weeks of the applications sitting in underwriting, the loans were rejected due to my real estate holdings. After all that time went by, they decided that I did not have enough equity in my properties. I was able to get the construction finished in Santa Fe but I still owe the contractor money there. In Farmington, the construction is half finished but the contractor will not finish until he receives more of the money he is owed. I already have approval for a lease for the exercise equipment in Farmington and I don't have to pay rent on my space until the fall. I am looking for $150,000 to finish paying off the contractors as well as other things needed to get the Farmington location up and running (i.e. tanning bed, massage chair, flooring, vending machine, exterior sign, etc.). I am willing to pay back the $150,000 at an interest rate of 20% over a 5-year term. This will be a monthly payment of $3,974.08 for a total $238,444.80 to be paid back.
I will provide pro formas which include projections showing that this amount will not be a problem to pay back. I will also provide photographs of the gym in Santa Fe so you can see what our finished product looks like and give an indication of what the Farmington gym will be.
Please contact me with any questions and I thank you for your time.
-Michael Knoll