Ask a Lawyer: 3 Things to Consider When Buying or Selling a Gym

Thinking about buying a gym?While it's easy to get distracted by all the bells and whistles, you really need to ask three major questions first:1. Is the space the gym is in leased or owned? 2. What are the assets and debts of the current business?3. What contracts are currently in play and what exactly do they say?Gym Lawyers founder Matthew Becker takes you through these questions and explains how the answers can affect the sale of a business. Are there more legal issues that can have an impact on a big transaction in the fitness world? Absolutely. The best plan: Bring an attorney into the process in the early stages so you don't have to untangle a huge mess down the line when you're just about to shake hands on a deal.2:13 - Leasing vs. Owning6:41 - Pitfalls of not carefully reviewing lease terms11:17 - Establishing LLC, operating agreement and business account when buying14:32 - Asset purchase agreement vs. buying company outright19:30 - Legal fees for purchase21:12 - Contracts24:45 - Contractual red-flags29:34 - How to limit risk