Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF. #76931-172976

The franchisor of this popular Italian concept opened its first location over 40 years ago and has been consistently ranked in the Top 100 Pizza Companies in America. Their mission is to serve New York style pizza and genuine Italian dishes in an upscale but casual environment. The company now has over 50 locations worldwide, serving up menu items such as margherita pizza, calamari, meatball calzones, chicken parmesan sandwiches, classic lasagna, baked ziti, freshly tossed salads, gourmet soups and more.
Multiple revenue sources: dine-in, delivery, take-out, and catering. Revenues in 2020 for this business were $580K, $775K in 2019, and $905K in 2018. Seller invested approx $400K in buildout and equipment. Monthly rent is $11,595 for 3,200 square feet. Seats approximately 140 including patio. Licensed for liquor, beer and wine.
Currently absentee operated but ideal for owner-operator in order to get business back on track. Staff of approximately 11. Franchisor training provided. Owner has multiple businesses and is looking to downsize.
Established location. Brand is over 40 years old. Location opened in 2015.
Marketing efforts could be enhanced with the increased use of social media
Beautifully designed with gorgeous and quality leasehold improvements. Sits on a major road with heavy traffic and high visibility.

Financial

  • Asking Price: $119,000
  • Cash Flow: $51,457
  • Gross Revenue: $582,923
  • EBITDA: N/A
  • FF&E: $161,000
  • Inventory: $7,000
  • Inventory Included: Yes
  • Established: 2015

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,200
  • Lot Size:N/A
  • Total Number of Employees:13
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

Owner has multiple businesses and is looking to downsize

Additional Info

The venture was founded in 2015, making the business 7 years old.
The sale will include inventory valued at $7,000, which is included in the suggested price.

The business has 13 employees and is located in a building with estimated square footage of 3,200 sq ft.
The real estate is leased by the business for $11,595 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell businesses. Nonetheless, the true factor vs the one they tell you might be 2 totally different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these might simply be excuses to try to hide the reality of changing demographics, increased competition, current decrease in incomes, or a variety of various other factors. This is why it is very important that you not depend entirely on a seller's word, yet rather, use the vendor's solution in conjunction with your overall due diligence. This will repaint an extra realistic image of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies finance loans in order to cover points like inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can imply that profit margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that have to be met or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in new customers? Often times, operating businesses have repeat consumers, which form the core of their day-to-day revenues. Particular elements such as brand-new competitors growing up around the area, road construction, as well as personnel turn over can affect repeat clients and also negatively affect future profits. One essential point to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Undoubtedly, the more individuals that see the business often, the greater the chance to develop a returning consumer base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the local median household income effect future earnings potential?