Listing ID: 71381
Very rare opportunity to acquire an established Pizza Sub Shop in a very desirable community. The price reflects the annul lease payments and not the selling price of the business. The owners of this business are willing to give an experienced and qualified buyer the opportunity to purchase the business anytime within two years of the initial lease. The purchase price of the business will be negotiated upfront so if the sales and profits grow, it will be a value add to the buyer. The seller is also willing to provide the buyer with a long term lease on the premises with a starting monthly rent of 2700 dollars. All other terms and conditions of the purchase and lease will be negotiable.
- Asking Price: $36,400
- Cash Flow: N/A
- Gross Revenue: $780,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:2,200
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
2200 SF street level retail store in mixed use building with onsite parking. The premises also provides a full basement for additional storage. The leasehold improvements along with the furniture, fixtures and equipment are less than three years old and very well maintained.
Available and Negotiable. Sellers will not consider an individual operator that cannot provide and substantiate adequate staffing. This is a key requirement for the lease/purchase deal.
Retirement/ Other Interests
While there is plenty of competition in the area, this business has a loyal customer base that keeps growing.
The biggest obstacle to growth is the challenging labor market. However, if you can supply the necessary staff, an aggressive and consistent marketing and promotional campaign should allow the business to grow it's revenue and profitability.
Why is the Current Owner Selling The Business?
There are all sorts of reasons why individuals choose to sell operating businesses. However, the genuine reason and the one they say to you might be 2 entirely different things. As an example, they might claim "I have a lot of various obligations" or "I am retiring". For many sellers, these reasons stand. However, for some, these might simply be reasons to attempt to conceal the reality of altering demographics, increased competition, current decrease in earnings, or a variety of various other factors. This is why it is extremely important that you not depend absolutely on a vendor's word, yet rather, use the seller's answer along with your total due diligence. This will paint a much more reasonable picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Lots of businesses finance loans in order to cover points such as stock, payroll, accounts payable, etc. Remember that in some cases this can mean that earnings margins are too tight. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be fulfilled or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new customers? Most times, operating businesses have repeat consumers, which create the core of their daily profits. Particular aspects such as new competition growing up around the area, road construction, and also employee turnover can influence repeat clients and adversely impact future profits. One essential thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business often, the higher the chance to develop a returning client base. A final idea is the basic area demographics. Is the business situated in a largely populated city, or is it located on the outskirts of town? How might the neighborhood typical home earnings effect future earnings prospects?