How to Sell Your Brazilian Jiu-Jitsu Studios Business: The Ultimate Industry Guide

Are you considering selling your Brazilian Jiu-Jitsu (BJJ) studio? Whether you’re an owner-operator or manage multiple locations, understanding the unique factors that drive value in the BJJ industry is crucial for a successful sale. This comprehensive guide will walk you through the key steps, valuation methods, and best practices to maximize your return when you sell your Brazilian Jiu-Jitsu studios business.

Understanding the Brazilian Jiu-Jitsu Studio Industry

Brazilian Jiu-Jitsu is a rapidly growing martial art and fitness discipline, attracting a diverse clientele ranging from hobbyists to competitive athletes. BJJ studios, often called academies, vary in size from single-location gyms to multi-site franchises. Owners may be hands-on instructors or act as absentee managers, and the business model often includes group classes, private lessons, kids’ programs, and merchandise sales.

BJJ instructors typically hold certifications from recognized organizations such as the International Brazilian Jiu-Jitsu Federation (IBJJF) or have earned their black belt under a reputable lineage. Studios with experienced instructors, a loyal student base, modern facilities, and a strong brand presence command higher valuations in the marketplace.

Valuing Your Brazilian Jiu-Jitsu Studio

The value of a BJJ studio is primarily determined by its adjusted owner benefit—the true economic profit available to a working owner. Most BJJ studios sell for a multiple of 2-4x their annual adjusted owner benefit, though premium studios can fetch higher multiples.

To calculate this figure:

• Start with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) from your latest financial statements.
• Add back the owner’s salary and any personal expenses run through the business.
• Ensure your financial records are up-to-date, accurate, and clearly organized for potential buyers.

A clean set of books not only increases buyer confidence but can also justify a higher asking price.

The Owner’s Role and Its Impact on Valuation

A critical factor in the valuation of a BJJ studio is the owner’s involvement. Studios where the owner is the primary instructor or the “face” of the academy may be less attractive to buyers, as the business’s success is closely tied to the owner’s presence. Conversely, studios with a strong team of instructors and systems in place for day-to-day operations are more transferable and command higher multiples.

When valuing your business, consider:

• How much of the revenue depends on your personal teaching or relationships?
• Can the business run smoothly if you step away?
• What would it cost to replace you with another qualified instructor or manager?

Reducing owner dependency before selling can significantly increase your studio’s value.

Transferring the Student Base

For buyers, the most valuable asset is often your student base. However, if students are loyal only to you as the owner, there’s a risk they may leave after the sale. To ensure a smooth transition and maximize your sale price:

• Gradually shift teaching responsibilities to other instructors.
• Build a strong team culture and brand identity that extends beyond the owner.
• Offer incentives for staff to stay post-sale, such as retention bonuses or contracts.

A stable, transferable student base is essential for a premium valuation.

Facility, Equipment, and Physical Assets

The quality and condition of your studio’s physical assets play a significant role in its market value. Modern mats, clean locker rooms, and up-to-date training equipment are attractive to buyers and reduce their need for immediate capital investment.

Key considerations include:

• Is your equipment (mats, pads, fitness gear) in good condition and debt-free?
• Does your facility have room for growth or additional programs?
• Are there any upcoming maintenance or upgrade needs?

Remember, the asking price should reflect both tangible assets and intangible value, such as your brand and student relationships.

Location and Lease Terms

A prime location is a major selling point for any BJJ studio. Proximity to residential neighborhoods, schools, or business districts can drive consistent student traffic. Equally important is a favorable lease:

• Secure a lease with at least 3 years remaining to provide stability for the buyer.
• Ensure rent is less than 10% of gross revenue, in line with industry standards.
• Negotiate options to renew or assign the lease to a new owner.

A convenient, accessible location with a long-term lease can significantly boost your studio’s value.

Maintaining Confidentiality During the Sale

Confidentiality is crucial when selling your BJJ studio. Premature disclosure can unsettle staff, students, and competitors, potentially harming your business’s value. Work with a professional business broker to:

• Pre-qualify buyers before sharing sensitive information.
• Use non-disclosure agreements (NDAs) to protect your business details.
• Manage communications discreetly to avoid disruptions.

A confidential, well-managed sales process preserves your studio’s reputation and ensures a smooth transition.

Key Steps to Prepare Your BJJ Studio for Sale

• Organize and update all financial records and tax returns.
• Document operational procedures, class schedules, and staff roles.
• Address any facility maintenance or equipment upgrades.
• Strengthen your instructor team and reduce owner dependency.
• Review and secure your lease agreement.
• Consult with a business broker experienced in fitness or martial arts studios.

Conclusion: Maximize the Value When You Sell Your Brazilian Jiu-Jitsu Studios Business

Selling your Brazilian Jiu-Jitsu studio is a significant decision that requires careful planning and industry expertise. By focusing on transferable value—such as a loyal student base, skilled instructors, modern facilities, and a strong lease—you can command a premium price and ensure a successful transition. For the best results, work with professionals who understand the unique dynamics of the BJJ industry and can guide you through every step of the sales process.

Ready to sell your Brazilian Jiu-Jitsu studios business? Start preparing today to maximize your return and set your legacy on the right path.