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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 09-22-2012, 06:59 AM   #1
Corbin Geiser
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Willing To Invest - Dallas Area

I am considering investing in one or more new Crossfit facilities in the Dallas area. If you have your certification, are approved for an affiliate, have your location and are looking for money for equipment or related start up expenses then I could be interested. Contact me with your bio and how much you are looking to borrow. Your estimated opening date would be ideal as well.

Note: I'm highly interested in repayment plans that are based on member headcount; this is ideal to me since it keeps my interest in the growth of the box.

Thank you!
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Old 02-21-2013, 11:38 AM   #2
Corbin Geiser
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Re: Willing To Invest - Dallas Area

Wow, I am just now seeing the PM's sent to me. I apologize to all that have not received a response yet.
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Old 02-21-2013, 12:38 PM   #3
Michael MacDowell
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Re: Willing To Invest - Dallas Area

Corbin - quick question if you wouldn't mind. As an investor in CF boxes, how do you typically structure the business relationship? You mentioned in your earlier post "based on the member headcount" but what does that relate to dollars-wise? If we assume you put in $50k, how would that work between you and the owner? Do you become a shareholder/partner? Do you partake in business decisions or trust in the owner? I'm really curious as I have the opportunity to utilize an investor and need to understand a good way to structure it. I am hesitant to do it all but perhaps there's a good way. Thanks.
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Old 02-21-2013, 05:22 PM   #4
Brian Strump
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Re: Willing To Invest - Dallas Area

You should do your very best to structure it in a way that you have the power in the relationship. Would you really want someone that is just an outside investor to have input that you "need" to follow on how to run your business?
You need to structure in a way that limits what ways that you can get F*#@ed.
Think of them as the bank, that's it. A bank lends money(an investment) and you pay them back with interest. They only care if they don't get their money back.

Unless you know, trust, and this person has a resume of good business acumen, I'd suggest just using them as you would a bank. IMO, paying them back more, as you make more may become counter-productive when you want to try to invest back into your affiliate. Perhaps, negotiate "x" number of months without a payment at the start, and then agree upon a payment plan over "x" number of months at an interest rate.





Quote:
Originally Posted by Michael MacDowell View Post
Corbin - quick question if you wouldn't mind. As an investor in CF boxes, how do you typically structure the business relationship? You mentioned in your earlier post "based on the member headcount" but what does that relate to dollars-wise? If we assume you put in $50k, how would that work between you and the owner? Do you become a shareholder/partner? Do you partake in business decisions or trust in the owner? I'm really curious as I have the opportunity to utilize an investor and need to understand a good way to structure it. I am hesitant to do it all but perhaps there's a good way. Thanks.
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Old 02-21-2013, 06:53 PM   #5
Michael MacDowell
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Re: Willing To Invest - Dallas Area

Thanks Brian. I am certainly cautious about entering into a partnership with someone viewing this simply as a business. While opening with some additional capital sounds nice I am concerned. This is a good friend but I know all about the horror stories. Seems no matter which way I try to think about the structure there are pitfalls. I think any decent business person wouldn't simply want to be paid back X+interest. They're looking for upside. I'm torn. Will continue to debate and explore ways to do this with and without outside funding.
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Old 02-21-2013, 06:57 PM   #6
Brian Strump
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Re: Willing To Invest - Dallas Area

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Originally Posted by Michael MacDowell View Post
Thanks Brian. I am certainly cautious about entering into a partnership with someone viewing this simply as a business. While opening with some additional capital sounds nice I am concerned. This is a good friend but I know all about the horror stories. Seems no matter which way I try to think about the structure there are pitfalls. I think any decent business person wouldn't simply want to be paid back X+interest. They're looking for upside. I'm torn. Will continue to debate and explore ways to do this with and without outside funding.
Outside funding doesn't need to be the issue. The 2 issues for me would be giving up something(% of your business) especially when you don't know how successful you may become; and having an outside person have an impact on business decisions when they may not actually be inside your business.

A bank does not do either of those.

Also, many affiliates start small with what they can afford, or on some credit cards, and grow as they can afford.
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Old 02-21-2013, 07:49 PM   #7
Corbin Geiser
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Re: Willing To Invest - Dallas Area

Quote:
Originally Posted by Michael MacDowell View Post
Corbin - quick question if you wouldn't mind. As an investor in CF boxes, how do you typically structure the business relationship? You mentioned in your earlier post "based on the member headcount" but what does that relate to dollars-wise? If we assume you put in $50k, how would that work between you and the owner? Do you become a shareholder/partner? Do you partake in business decisions or trust in the owner? I'm really curious as I have the opportunity to utilize an investor and need to understand a good way to structure it. I am hesitant to do it all but perhaps there's a good way. Thanks.

Honestly, my interest is mostly in being a silent partner with someone that has the passion, experience, and knowledge to train and succeed with an affiliation. I have heavily considered opening one myself but realize that many are better suited for the hands on training. I decided that I'd actually help change more lives through helping fund one or more boxes. The headcount idea is just an idea poised to me. The thought being that if an owner were to have to commit to a fixed payment, regardless of membership, then the liability could be tougher during the growth phase. If payment back to me was based on $ per member then not only would the owner be able to scale their debt payment along with growth it would also keep me, the investor, interested and supportive of growth and success throughout the growth process. The $ per headcount would be less than 10% of each members monthly fee....which is controlled by the owner, of course. Plan is to be a silent partner by legal description but accounting/finance/business strategy is available considering that's the industry I've been in for the last 16 years. Those are my thoughts at this time but I keep an open mind to what's best for the affiliate's success. I'm not looking to make a ton of money off anyone. I just know that there are qualified and passionate people out there that just need a few bucks to help their dream. Thanks for the question.
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