Business Overview

This listing is for TWO existing donut shops! One is on a very busy street in the heart of Salt Lake Valley, and the other is the primary shop in a popular rural market. The Salt Lake location is still only a few months old, so we are not posting annual revenue numbers for the set. The rural location did about $200K revenue last year with much opportunity for upside.

Financial

  • Asking Price: $225,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: $200,000
  • Inventory: $6,000
  • Inventory Included: Yes
  • Established: N/A
About The Facility:

This set of two donut shops is turnkey and has the basics needed for high performing donut shops. Donuts produced in back room. Also selling breakfast kolaches and bottled beverages. Very simple operation with high gross margins.

Is Support & Training Included:

Seller will teach new owner existing processes as desired

Purpose For Selling:

Dissolved partnership

Opportunities and Growth:

These shops are not as profitable as they should be, but they are an excellent turnkey starting point for someone to come in with some advertising dollars (possibly a rebranding effort) and additions to the product lineup. With the right TLC these shops could/should be doing double the existing revenue at a high profit margin.

Additional Info

The deal does include inventory valued at $6,000, which is included in the listing price.

The building is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell businesses. However, the real factor vs the one they tell you might be 2 totally different things. For instance, they may claim "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competition, current reduction in revenues, or a variety of various other reasons. This is why it is really important that you not rely absolutely on a seller's word, yet rather, utilize the seller's solution along with your general due diligence. This will repaint a more realistic image of the business's present circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of businesses borrow money with the purpose of covering items like stock, payroll, accounts payable, and so on. Bear in mind that in some cases this can suggest that earnings margins are too small. Lots of organisations fall into 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 think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in brand-new consumers? Often times, businesses have repeat consumers, which create the core of their day-to-day earnings. Particular factors such as brand-new competitors sprouting up around the location, road construction, as well as employee turn over can affect repeat consumers and also negatively influence future earnings. One crucial point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the higher the possibility to develop a returning client base. A final thought is the general location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the neighborhood mean family income effect future earnings potential?