Listing ID: 70054

Business Overview

Located in the St Louis area. Owner operated franchise for the last 13 years and it shows through its cleanliness, organization, employee base and “customer first” service. Located in leased space with lots of traffic. Dine in space and a covered drive thru window. Shared public restrooms with another tenant that cleans, stocks and maintains them! No late nights or early morning hours. Great franchisor relations with many perks other franchised restaurants don’t have.

Financial

  • Asking Price: $375,000
  • Cash Flow: N/A
  • Gross Revenue: $900,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A

Why is the Current Owner Selling The Business?

There are all types of reasons why people decide to sell operating businesses. However, the real reason and the one they tell you may be 2 totally different things. As an example, they might say "I have too many other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these may simply be reasons to try to conceal the reality of transforming demographics, increased competition, current decrease in profits, or a range of various other reasons. This is why it is extremely essential that you not count completely on a seller's word, yet rather, use the vendor's response along with your total due diligence. This will repaint a much more sensible image of the business's current scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your offer. Many companies take out loans so as to cover things such as inventory, payroll, accounts payable, and so on. Keep in mind that occasionally this can indicate that profit margins are too small. Many organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to consider. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that must be fulfilled or may cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the area draw in brand-new clients? Most times, companies have repeat consumers, which form the core of their daily revenues. Specific aspects such as brand-new competition growing up around the area, road construction, and also staff turn over can influence repeat consumers as well as adversely affect future profits. One essential thing to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Obviously, the more individuals that see the business on a regular basis, the higher the chance to develop a returning client base. A last idea is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outskirts of town? Just how might the neighborhood average household earnings impact future income prospects?