<prompt> Human: Hey PF!My spouse and I are interested in purchasing a fitness franchise and Im looking for some advice.The franchise is a non-specific location fitness program for stay at home moms and new moms in our geographic area. The owner is an instructor, and has 1099 contractor instructors other moms in payroll. She currently operates the franchise under an S-Corp. Current franchise expires in April 2017, but wants to sell before year-end for tax purposes.Current owner provided these details:Apr-Dec 2014Rev 14,200Staff not including owner 1,400Location Fees 1,500Franchise Fees 3,3008,000 Profit2015Rev 22,500Staff not including owner 3,770Location Fees 2,100Franchise Fees 4,50012,130 ProfitGetting 2016 details from her soon, but membership numbers have been on the incline since 2014.Owner was not putting in too much time to expandmarket business - growth was mostly organic.The more my wife instructs, the less we will pay staff.All web materials, payroll, email lists, various tech is covered in Franchise Fees.Annual insurance is 180 for 1M3M.Asking price to transfer franchise is 5K.My questions:Does this seem like a franchise you would purchase - whywhy not?If we purchase, do you recommend LLC or S-Corp? wife doesnt work, but I work and income is around 90K annually before deductionsetc.How would you recommend we finance the purchase?  <response>: I own 2 gyms a 24 hour gym and a personal-training studio and am getting ready to open a spin studio next month. If the members arent on long-term contracts, you really arent buying anything. Studio-type fitness facilities that are essentially personal training arent very attractive to new owners because the members are basically purchasing a membership to train with that person, especially if the fitness facility serves primarily women. If heshe leaves and the members arent committed to long-term contracts, they may very well leave.For the profit, it would probably less stress if your wife became a personal trainer and worked at a local gym. With just a handful of clients, she could make 12k per year. If you are dead set on purchasing it, Id recommend that your wife fill in as a trainer under the current owner for 2-3 months. Then at the end of the 3 months, shell know if its worth it or not. Plus, it gives the clients time to get used to her so the transition is smooth. 