Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF #76931-850659
This restaurant has a gorgeous build out and is located in north Houston. This is a unique opportunity to buy a fully functioning franchise at a fraction of the typical startup cost.

This franchise brand is based in southern California and has over 60 locations across the United States, Canada, and Japan and is inspired by authentic recipes served with a unique vibe. Menu items include tacos, burritos, quesadillas, tostada bowls, salads, and a breakfast menu all day! Beer and margaritas are also available. Dine-in, carry out, delivery, and catering provide multiple revenue streams!

The restaurant for sale has 1,940 sq ft and is located in an upscale shopping center with excellent demographics, visibility, and traffic counts. Monthly rent (including CAM) is $6,709. Lease expires in 2024 plus another 5 year option.

The listing price includes over $100,000 in FF&E, $300,000 in Leasehold Improvements, plus $5,000 in inventory. There are 12 employees including 3 managers and shift leaders on staff. The owner will provide 2 weeks of training to ensure a smooth transition. Additional time is available upon request. The current owner is involved in another business and doesn’t have enough time to handle this restaurant.

Per owner’s financials, sales in 2020 were $604K with approximately $42K in discretionary earnings. Increased marketing and sampling to nearby businesses, schools, and churches will help increase revenue going forward. There are also strong delivery and catering opportunities in the area.

Financial

  • Asking Price: $195,000
  • Cash Flow: $42,504
  • Gross Revenue: $604,343
  • EBITDA: N/A
  • FF&E: $100,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 2019

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,940
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other business

Additional Info

The business was started in 2019, making the business 3 years old.
The deal will include inventory valued at $5,000, which is included in the requested price.

The company has 12 employees and resides in a building with estimated square footage of 1,940 sq ft.
The real estate is leased by the company for $6,709 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell businesses. Nonetheless, the true reason and the one they tell you may be 2 totally different things. For instance, they may state "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 justifications to try to conceal the reality of changing demographics, increased competition, current decrease in revenues, or a range of various other reasons. This is why it is very essential that you not depend absolutely on a seller's word, but rather, make use of the seller's solution together with your total due diligence. This will paint a much more realistic image of the business's present situation.

Existing Debts and Future Obligations

If the current company is in debt, which numerous businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans so as to cover things like supplies, payroll, accounts payable, so on and so forth. Remember that occasionally this can indicate that profit margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with vendors that have to be fulfilled or might result in penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract brand-new customers? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day revenues. Certain elements such as brand-new competition sprouting up around the location, road building and construction, and also employee turnover can impact repeat consumers as well as adversely influence future incomes. One vital point to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business regularly, the higher the possibility to construct a returning customer base. A final idea is the basic location demographics. Is the business placed in a largely populated city, or is it located on the outside border of town? Exactly how might the local median house earnings influence future earnings prospects?