Business Overview

This is a premier health service franchise located in the posh and upscale neighborhood of Collin County, TX. This facility strives to provide the best lice and nit treatment solution to its customer, a job very few want to do out of fear to catch lice themselves. Having lice in hair means you cannot attend school; you will be refused service at hair salons and people will start avoiding you.

This business was established in Y2015 by its initial owner; the current owner purchased the business in April 2019. The business was highly profitable before COVID-19 pandemic slowed down the business considerably in 2020 and 2021. Although the revenue and profitability has dropped in 2020 and 2021 due to pandemic, the business is poised to grow rapidly in 2022 as COVID-19 vaccine is administered to general population and schools have opened up for in-person attendance.

The current owner is selling the business to pay attention to his multiple other ventures and would like to handover this business to a new and energetic entrepreneur who can take this business to the next level. The buyer is expected to profit handsomely from this deal. The buyer does not need any special license to own this business.

Financial

  • Asking Price: $129,000
  • Cash Flow: $115,721
  • Gross Revenue: $325,167
  • EBITDA: N/A
  • FF&E: $30,000
  • Inventory: $3,000
  • Inventory Included: Yes
  • Established: 2015

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,100
  • Lot Size:N/A
  • Total Number of Employees:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

This business is housed in a spacious and well-equipped office located at an affluent neighborhood in Collin County, TX. The facility has a covered area of 1,100 sq. ft. and monthly rent of $3,329.28. The current lease expires in Apr 2024 but tenant has an option to extend the lease for two more 5-year terms.

Is Support & Training Included:

2 weeks

Purpose For Selling:

Other Interest

Pros and Cons:

Although the lice removal industry is competitive, the franchise in general and this specific location in particular has established a great reputation and goodwill among its clients. This franchise has a unique model which is very popular and that is evidenced by its strong financials before the pandemic slowed it down.

Opportunities and Growth:

The current owner is not able to pay any attention to this business due to his several other ventures. This business is being run essentially as an absentee-owner outfit right now. A new owner can direct sales and marketing efforts to further increase revenue. There is a huge potential for growth in this industry. This business can’t be outsourced overseas.

Additional Info

The venture was founded in 2015, making the business 7 years old.
The sale shall include inventory valued at $3,000, which is included in the asking price.

The company has 2 employees and is located in a building with approx. square footage of 1,100 sq ft.
The property is leased by the company for $3,329.28 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell companies. Nevertheless, the real factor and the one they tell you may be 2 absolutely different things. For instance, they might claim "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competitors, recent decrease in profits, or a variety of other reasons. This is why it is very important that you not depend completely on a vendor's word, but rather, make use of the seller's solution in conjunction with your total due diligence. This will repaint a much more sensible image of the business's present situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of operating businesses finance loans with the purpose of covering items like stock, payroll, accounts payable, and so on. Remember that sometimes this can imply that profit margins are too thin. Many 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 equipment or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location attract brand-new clients? Many times, businesses have repeat consumers, which create the core of their day-to-day revenues. Particular elements such as new competitors sprouting up around the area, road building and construction, and also employee turnover can influence repeat clients and also negatively impact future incomes. One vital point to take into consideration is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better 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 located on the edge of town? Just how might the regional average family earnings influence future earnings potential?