Listing ID: 66916
Are you a bank? Are you a Tire Store?
You are BOTH, offering quality tires and custom wheels to customers for purchase or lease.
This Semi-Passive Business with its Pay-as-you-go program accounts for over 85% of total revenue. Also offering balancing and on-road maintenance.
There are currently 116 locations nationwide in 23 states with multi-store possibilities in Oregon and Washington.
- Asking Price: $1,000,000
- Cash Flow: $445,000
- Gross Revenue: $2,300,000
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $100,000
- Inventory Included: Yes
- Established: 2000
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:6,000
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The facility includes a tire balancer, tire changer, lifts, tools, compressor, flange kit, nitrogen inflation system. Desks, chairs, display racks, and decor items. Computer and Signage.
Online training in combination with a minimum of 2 weeks “on the job” training at an existing RNR location is followed with 2 weeks on-site training with an experienced trainer from corporate. Operational and Marketing Tools: In house marketing dept will develop promotions and supporting marketing materials as needed without charge for creation. We can design/create graphics, audio, and video to support our franchisees marketing efforts in addition to the creation of social and digital media campaigns. The marketing support also includes assistance with our CRM and proper lead follow-up. Continuous training is provided as needed.
The venture was founded in 2000, making the business 22 years old.
The deal shall include inventory valued at $100,000, which is included in the listing price.
The building is leased by the company for $10,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people choose to sell businesses. Nonetheless, the true factor vs the one they say to you might be 2 totally different things. As an example, they may claim "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competitors, current decrease in profits, or a variety of other factors. This is why it is extremely vital that you not rely absolutely on a seller's word, yet instead, make use of the vendor's answer along with your general due diligence. This will paint a more practical picture of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies borrow money so as to cover things like supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that earnings margins are too tight. Many organisations come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be satisfied or might lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in brand-new clients? Most times, operating businesses have repeat customers, which develop the core of their daily earnings. Particular elements such as brand-new competitors sprouting up around the location, roadway building, and employee turn over can affect repeat consumers as well as adversely affect future revenues. One vital point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Obviously, the more individuals that see the business often, the better the possibility to build a returning customer base. A final idea is the general location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? How might the local typical household earnings effect future income potential?