Listing ID: 67676
Fast food drive through & dine in restaurant for sale in Augusta County. This restaurant has been in business for almost 50 years and is a favorite to all the locals. The menu consists of burgers, chicken nuggets, soups, salads as well as ice cream , milk shakes and much more. The current owner has moved and now the commute is too far for him watch over the restaurant. CHEAP RENT!!
Cash Flow: $100,000
Term: 3 years plus 5 year option
- Asking Price: $189,000
- Cash Flow: $100,000
- Gross Revenue: $570,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Too far commute
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell operating businesses. Nevertheless, the true factor and the one they tell you might be 2 absolutely different things. As an example, they might say "I have a lot of various obligations" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competition, current decrease in incomes, or a range of other factors. This is why it is really essential that you not count entirely on a seller's word, yet instead, use the seller's solution along with your total due diligence. This will repaint an extra realistic image of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies borrow money so as to cover points like inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can indicate that earnings margins are too tight. Lots of organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area bring in brand-new customers? Most times, businesses have repeat consumers, which create the core of their everyday revenues. Specific factors such as brand-new competitors growing up around the area, road construction, and also personnel turnover can influence repeat clients as well as adversely affect future incomes. One crucial point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A final idea is the basic location demographics. Is the business situated in a densely inhabited city, or is it located on the outskirts of town? How might the neighborhood median household income influence future earnings prospects?