Business Overview

Per Franchisor regulations, Buyer needs to contact agent and complete non-disclosure agreement and personal financial statement prior to receiving sales and cash flow information. Little Caesar’s is one of the largest and fastest the growing pizza carry-out chains in the world with restaurants on five continents. Franchisor requires a minimum of 700 credit score, $250,000 net worth or 70% of purchase price, whichever is higher with $100,000 liquid cash or 20% of purchase price, whichever is higher. IRA and 401K not acceptable as liquid, only items that can be liquidated within 24 hours. Restaurant experience is preferred.

Financial

  • Asking Price: $1,500,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
About The Facility:

All FF&E to be in good working condition prior to change over.

Is Support & Training Included:

Franchisor offers 8 weeks of training.

Purpose For Selling:

Other business interests

Pros and Cons:

Sales up, great locations in strip malls in busy areas of Phoenix metro area.

Opportunities and Growth:

Growth in brand via new development or acquisition of existing units.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell operating businesses. However, the real factor vs the one they tell you might be 2 absolutely different things. As an example, they might claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be excuses to try to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of various other factors. This is why it is very important that you not rely totally on a vendor's word, however instead, use the vendor's response together with your overall due diligence. This will repaint a more reasonable picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses finance loans so as to cover points like supplies, payroll, accounts payable, and so on. Remember that sometimes this can suggest that revenue margins are too small. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in brand-new consumers? Many times, businesses have repeat customers, which develop the core of their day-to-day earnings. Specific factors such as brand-new competitors sprouting up around the area, roadway construction, and staff turnover can impact repeat consumers and also adversely impact future earnings. One crucial point to consider is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more individuals that see the business often, the greater the chance to construct a returning client base. A final idea is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? How might the local typical family earnings effect future income potential?