Reasons1

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  • relatively resilient during economic downturns
  • the industry generates attractive and above-average "free cash flow"
  • bad debt experience is minimal
  • working capital requirements are stable
  • the industry offers a distinctive value proposition
  • exhibits strong unit economics
  • upside potential for nondues revenue
  • *Know more from - IHRSA Health Club Business Handbook: the Ultimate InvestorAnd Operator Gudie to Gyms, Studios and FitnessCenters, by John McCarthy