Listing ID: 70070
Business Overview
Sonic is a chain of quick-serve restaurants known for ice cream, shakes, slushies and hot dogs. The chain uses a five-daypart strategy: strong breakfast, lunch, afternoon, dinner and evening. One reason for this approach is that almost 40 percent of its profits derive from ice cream, shakes, slushes and drinks. Many of its customers visit during after-school hours.
Sonic stands out among fast food restaurants because of its drive-in stalls. Customers park in a stall, order their food, and it is delivered to them. They can stay in their cars to eat if they want.
Sonic’s training program includes an extensive training platform and ongoing education.
This franchise model is drive-in model with 16 drive-in stalls and patio seating. With sales over $1MM this year it is up over 20% from 2019. This franchise is adjacent to a Wal mart and several other fast food chains and retail centers. Rent is $5,000/mos NNN. Option to purchase the real estate. Business is absentee run.
Financial
- Asking Price: $720,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
Additional Info
The building is leased by the business for $5,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell businesses. Nonetheless, the genuine reason vs the one they tell you might be 2 absolutely different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these might simply be reasons to try to conceal the reality of transforming demographics, increased competitors, current reduction in earnings, or a range of other reasons. This is why it is really vital that you not count completely on a vendor's word, however instead, utilize the seller's response together with your general due diligence. This will paint an extra reasonable image of the business's present scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will have reason to consider this when valuating/preparing your deal. Numerous companies take out loans so as to cover items such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can mean that earnings margins are too thin. Lots of organisations fall under 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 think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that have to be fulfilled or might cause fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract new consumers? Often times, companies have repeat consumers, which develop the core of their day-to-day earnings. Specific factors such as new competition sprouting up around the location, roadway construction, and employee turnover can affect repeat customers and adversely affect future revenues. One crucial thing to take into consideration is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Clearly, the more people that see the business on a regular basis, the higher the chance to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Just how might the neighborhood mean home income effect future revenue potential?
