Business Overview

Business Description:
This major Master Franchisor operates 36 profitable units spread across DC, Baltimore, and Virginia. Each unit is on average 2,100 square feet, all on leases, and with extendable options available. Expansion to at least 20 more locations is now underway.

The company has mastered a successful system for finding, training, and coaching the new franchisee. Also, they have created a great process to assist in full, from the construction site selection to which architect and attorney to use, to everything in-between.

Moreover, there is one owner-owned restaurant run independently from the rest but also included in the sale. The restaurant is strategically located in the state of VA and has the capacity to be run autonomously or with oversight.

The company operates under a well-recognized national brand of fast dining restaurants. With some of the highest customer satiation and food quality second to none, they’re looking to find someone who is willing to take from here and expand the company to new heights.

Historical Summary:
When the owner purchased the territory he worked with the franchisor to map out a sustainable plan for growth. Store locations were developed to maximize individual store performance. There are at a minimum an additional 20 locations within the territory to ultimately be developed.

Financial

  • Asking Price: $4,300,000
  • Cash Flow: $853,171
  • Gross Revenue: $1,775,993
  • EBITDA: N/A
  • FF&E: $7,313
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2006

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,100
  • Lot Size:N/A
  • Total Number of Employees:12
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

THE FIGURES ABOVE ARE FOR THE OWNED STORE THE TOTAL SALES ON THIS TEASER IS BASED ON ROYALTIES FROM SUB-FRANCHISEES.

Is Support & Training Included:

COMPLETE TRAINING AND SUPPORT INCLUDED IN SALE

Purpose For Selling:

RETIREMENT

Pros and Cons:

VERY LIMITED

Opportunities and Growth:

UNLIMITED

Additional Info

The company was started in 2006, making the business 16 years old.

The company has 12 employees and resides in a building with estimated square footage of 2,100 sq ft.
The real estate is leased by the company for $8,900 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell operating businesses. Nonetheless, the true factor vs the one they say to you may be 2 entirely different things. As an example, they may say "I have too many other obligations" or "I am retiring". For many sellers, these reasons are valid. But, for some, these may simply be reasons to try to hide the reality of changing demographics, increased competition, current decrease in earnings, or an array of various other reasons. This is why it is very crucial that you not count absolutely on a vendor's word, but instead, use the vendor's solution along with your total due diligence. This will repaint an extra practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of companies finance loans so as to cover points such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can suggest that profit 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. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that should be satisfied or might cause fines if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location bring in brand-new customers? Many times, businesses have repeat customers, which form the core of their day-to-day revenues. Particular elements such as brand-new competitors growing up around the location, roadway building and construction, and also staff turn over can impact repeat consumers and also negatively impact future profits. One essential thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the better the possibility to develop a returning consumer base. A final thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it situated on the edge of town? Exactly how might the local typical home income impact future earnings potential?