This negotiation takes place between a long-standing franchise owner preparing to sell a profitable downtown fitness club and a corporate representative aiming to consolidate key locations under company ownership.
The seller is motivated to exit but has not shared the underlying reasons, and the buyer must work within a fixed acquisition ceiling while assessing renovation needs and competitive pressure. Although the relationship has been positive, the impending transition creates uncertainty about expectations, disclosure, and the future connection between the parties.
The exercise gives instructors a concise way to examine how limited information, personal stakes, and shifting organizational priorities shape bargaining behavior, and how creative structuring can preserve or reinforce a relationship that is at risk of unraveling during an exit.