Business Overview

Here is an opportunity to own a name brand frozen yogurt shop with options to open more stores. Ideal for an owner/operator or family to own and operate. If you have checked out the cost of equipment for frozen yogurt stores, you know it is not inexpensive. This business will transfer with significant value just in the equipment and leasehold improvements alone, even on a depreciated basis. Asking price is commensurate with the value of the assets and the on-going business.
Would qualify for SBA financing. Like many businesses in the food sector, this one suffered a downturn in revenue during the initial pandemic stages. Business is on track to recovery back to pre-pandemic levels closer to $325,000 annual sales.

Financial

  • Asking Price: $175,000
  • Cash Flow: N/A
  • Gross Revenue: $250,000
  • EBITDA: $15,292
  • FF&E: $175,000
  • Inventory: $5,000
  • Inventory Included: N/A
  • Established: 2011

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,200
  • Lot Size:N/A
  • Total Number of Employees:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Location, location, location! This shop is located in a high traffic volume strip shopping center accompanied by several other well-known local and regional businesses. Interior is distinctively finished resulting in a good initial impression. Being optimally sized for this type of business makes for a great rent situation. The lease is triple net with a base rent of $ 2,027.76. Common area maintenance (CAM) charges are approximately $325.00 per month.

Is Support & Training Included:

Transition training will be provided and supported with well documented manuals and standards for the business.

Purpose For Selling:

Owner lives too far away to devote time needed to maximize the store's potential

Pros and Cons:

There are a few competing frozen yogurt shops in the market, none immediately nearby.

Opportunities and Growth:

Operations, growth avenues, and more will be in the confidential business summary; available only to parties that have completed and returned the NDA (non-disclosure agreement).

Additional Info

The company was started in 2011, making the business 11 years old.
The sale shall not include inventory valued at $5,000*, which ins't included in the asking price.

The property is leased by the company for $2,027.76 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell operating businesses. Nevertheless, the true factor and the one they tell you might be 2 totally different things. As an example, they might say "I have too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But, for some, these may simply be justifications to attempt to hide the reality of altering demographics, increased competitors, recent reduction in revenues, or a range of other reasons. This is why it is extremely important that you not depend totally on a vendor's word, but rather, utilize the vendor's answer combined with your overall due diligence. This will paint a much more realistic picture of the business's current situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies borrow money in order to cover points like supplies, payroll, accounts payable, etc. Remember that in some cases this can mean that profit margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that should be met or might cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the area draw in brand-new consumers? Many times, companies have repeat clients, which develop the core of their day-to-day earnings. Particular factors such as new competitors sprouting up around the area, roadway building, and also staff turnover can influence repeat consumers and also negatively influence future earnings. One crucial thing to think about is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more people that see the business regularly, the greater the possibility to build a returning customer base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? How might the local average household earnings impact future income potential?