Business Overview

We are pleased to present you with this rare opportunity to own a new sports bar franchise in N Dallas with significant upside growth potential. In spite of the impact of Covid-19, and given that it was just newly built out and opened for business in mid 2019, this sports bar features a unique concept which has been quite popular with a growing fan base. It’s appeal has driven the business revenue increase, by more than 30%, from $2.6M to $3.4M since 2019. Patrons enjoy a very popular and expansive menu of wings, nachos, steak, shrimp, soup & salads, and many other bar food favorites.

Watch the many large screen TVs, relax at the bar, or just people watch and chat with its friendly staff. Patrons love its variety of food, spirits, and entertainment. This location could be run as absentee as its franchisor is currently only spending 1-2 hours per week overseeing the operations of this location. This location boasts solid books and records.It also features large and capable staff of 52 employees, including two lead bar tenders, two lead servers, 3 front of house, and 1 back of house managers.

This turnkey location is being sold by its franchisor, as the first of a planned 50-state, nationwide expansion of the franchise brand. While this location’s financials have been reviewed and approved by financing by an Preferred SBA Lender, the franchisor has not yet completed its application to the SBA so conventional financing or cash would be required for this acquisition. The franchisor is committed to facilitating smooth transitional support and training the new franchisee owner.

Financial

  • Asking Price: $1,650,000
  • Cash Flow: $567,916
  • Gross Revenue: $3,405,548
  • EBITDA: $417,916
  • FF&E: $279,000
  • Inventory: $19,950
  • Inventory Included: Yes
  • Established: 2019

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:7,890
  • Lot Size:N/A
  • Total Number of Employees:52
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Newly built out in 2019. Business benefits from a 20 year lease option in the current space, with first option period ending in June of 2024.

Is Support & Training Included:

Franchisor will provide training & transitional support as necessary to ensure that the buyer is adequately prepared to take over its operations.

Purpose For Selling:

Franchisor is growing the brand by expanding its access to franchisees.

Opportunities and Growth:

The franchisor is making a considerable investment in marketing and advertising for the brand and for each franchise location. The marketing and advertising expenditure is believed to be adequate for this location today and well into the future. As the brand becomes more popular and recognized, its brand recognition will also become a driver of traffic to its various franchise locations. Growth vectors for the brand may lie in the establishment of loyalty programs that are so pervasive in the most recognized fast -food brands.

Additional Info

The company was established in 2019, making the business 3 years old.
The sale will include inventory valued at $19,950, which is included in the suggested price.

The company has 52 employees and is located in a building with disclosed square footage of 7,890 sq ft.
The building is leased by the business for $18,738 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people choose to sell operating businesses. Nonetheless, the genuine factor and the one they tell you might be 2 completely different things. As an example, they might claim "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these may simply be reasons to attempt to conceal the reality of altering demographics, increased competition, current reduction in revenues, or a range of various other factors. This is why it is extremely crucial that you not rely absolutely on a seller's word, yet instead, make use of the seller's answer combined with your general due diligence. This will repaint a much more reasonable picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering points such as stock, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too thin. 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 also be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that should be satisfied or may result in fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the location bring in new consumers? Most times, companies have repeat consumers, which create the core of their day-to-day earnings. Particular factors such as new competition growing up around the location, road construction, and employee turn over can impact repeat consumers and negatively impact future earnings. One important thing to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business on a regular basis, the higher the chance to construct a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? Exactly how might the local typical family earnings effect future income potential?