#1 Rule: Partners SUCK. People change their minds like the wind.
The guy who was "out of the picture" may get a divorce and all assetts must be liquidated to settle. Forcing you to buy him out or sell to other concern, or liquidate. Your stuck either way.
Have you had an ACCOUNTANT verify the books, or going on heresay?
Any lifetime Memberships just get bought? That revenue is lost forever. Constant turnover of members? Influx of cash is mandatory.
Just be careful walking into a business. There are many trip ups. Hire an accountant and a lawyer to go over every detail. Even if you waste 3 grand, it will be worth it.
NO and I mean NO verbal agreements. PAPER is the only thing recognized in court.
Plan for the worst, hope for the best.
Don't get a big head. Even of the business works well for you, don't buy ANYTHING on credit. Only after you have cash in hand, AFTER TAX. I've seen guys buy a business from their Dad, go out and get a Lexus the following year. The Next year, the Lexus was being sold off with the companies assets.
If you decide to pursue this, I wish you luck. Just being prepared for the worst will help in 99% of the situations.