Case Design
The Woodlands
Health & Fitness Club
Introduction
The Woodlands Health & Fitness Club was established in 2004 by Lisa E. Maurin, current President of T.T.B. ,INC.. The club is specializing in fitness exercise and educating its clients on a healthy lifestyle. With this combination, clients lose weight and learn how to keep the weight off which in turn improves their self-esteem and self-motivation. The business is currently located at 3310 Quinn Lane, Spring, Texas. The company has seen tremendous success and growth over the past two years and therefore is seeking capital in the amount of $200,000 for the purpose of relocating into a larger facility. The new location will be leased at the price of $16.00 per sq. ft. The new facility will be 1,200 sq. ft. in size for the total lease amount of $19,200 per month.
The $200,000 loan will help the company lease this new facility and pre-pay ten months worth of rent in advance as well as cover the moving expense. This new facility will aid the company in servicing more clients at the same time and benefitting the company with the continuing growth of its client base. A property has already been selected and an estimated remodeling and renovation plan has been prepared and the estimated expenses have been included in the total loan amount.
It is projected that the company will have an increase in growth of about 55% within the next two years after relocating into the new facility.
Repayment of the $200,000 loan amount at 6.5 percent interest for 8 years can begin within 30 days of issuing the funds and ...