Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF. #: 76931-501348

National Franchised Maid Service with great territory for expansion. Customers are treated with the utmost respect and will receive nothing less than first-class service. Staff members do their best to ensure engagement with clients exceeds their expectations. Business offers Residential Home Cleaning to include one time (Deep Cleanings, Move In/Out, Design with Time) or recurring services on a weekly, bi-weekly or monthly basis. Revenues for 2021 are expected to hit $228K. Revenues in 2020 were $194K, $172K in 2019, and $94K in 2018. Currently there are 6 FT cleaners, 1 PT Admin and the Owner/Manager. Monthly rent is approximately $2,200 for 1,400 square feet, (Base Rent $1,400). Owner is the manager of this business. The hard initial years are over, walk-in today to take over a nationally franchised business with an expansive territory. Bring your energy to expand this business, take advantage of this opportunity. Sale includes approximately $5K in FF&E, $18K in Leasehold Improvements and $33K Franchise Fee. Franchise Territory includes the greater Katy, TX area including parts of Waller, Fort Bend and Harris Counties. Cleaning Services in this category typically sell for 68% of Revenue. This business is priced at 65% of Revenue and includes over $55,000 of Assets (including the franchise fees).
The Franchise location here in Katy was acquired in March 2017 and was slated to open for business in September 2017, however, Hurricane Harvey unfortunately delayed the opening for another 2 months in which finally opened in November 2017 despite a good portion of the area being flooded. The location has continued to grow over the last 4 years and was slowed considerably by the COVID-19 pandemic which caused the business to flatline for about 9 months. This year the business has seen a significant growth with a conservative projected increase of revenue of 12%-15% from the previous year. On an average, 92% of the monthly revenue is recurring services and client attrition has been held to a low percentage.
Center less than 5 Yrs. Old

Financial

  • Asking Price: $150,000
  • Cash Flow: N/A
  • Gross Revenue: $228,000
  • EBITDA: N/A
  • FF&E: $5,500
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2018

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,400
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

personal

Additional Info

The business was established in 2018, making the business 4 years old.

The company has 7 employees and is located in a building with estimated square footage of 1,400 sq ft.
The real estate is leased by the company for $2,200 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell operating businesses. Nevertheless, the real factor vs the one they say to you may be 2 entirely different things. For instance, they might claim "I have too many other obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these may just be excuses to attempt to conceal the reality of changing demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is extremely crucial that you not count totally on a vendor's word, but rather, make use of the vendor's answer along with your overall due diligence. This will repaint a more reasonable image of the business's existing circumstance.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering items such as stock, payroll, accounts payable, and so on. Bear in mind that occasionally this can mean that earnings margins are too thin. Numerous businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or might lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area attract brand-new consumers? Most times, businesses have repeat clients, which form the core of their everyday earnings. Particular factors such as new competition sprouting up around the area, roadway building, and also employee turn over can affect repeat clients and adversely affect future earnings. One important point to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Obviously, the more people that see the business often, the greater the chance to develop a returning client base. A final idea is the general location demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? How might the neighborhood mean household income impact future earnings potential?