Listing ID: 72535
An expanding Pacific Northwest Franchise, looking for a new owner at this turnkey establishment.
We are serious, edgy, irreverent. Pizza, craft beers, family-friendly, eclectic. Pizza Schmizza is an Oregon-based chain of New York style pizzerias offering some of the most unique pizza-by-the-slice treats your customers will ever have. Not only does this establishment serve up these unique masterpieces, but it also includes many side dishes, wine and beer on tap.
- Asking Price: $230,000
- Cash Flow: $30,000
- Gross Revenue: N/A
- 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 kinds of reasons why people resolve to sell companies. Nevertheless, the real reason and the one they tell you may be 2 completely different things. For instance, they might claim "I have way too many various obligations" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might simply be justifications to attempt to hide the reality of changing demographics, increased competitors, current reduction in earnings, or a variety of other reasons. This is why it is very vital that you not depend completely on a vendor's word, however rather, utilize the seller's solution together with your general due diligence. This will paint a more realistic picture of the business's current circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies borrow money in order to cover items like stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that revenue margins are too tight. Numerous organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that must be met or may lead to charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location draw in brand-new clients? Many times, companies have repeat clients, which develop the core of their everyday revenues. Particular factors such as new competition growing up around the area, roadway construction, and personnel turn over can impact repeat clients as well as negatively impact future earnings. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning consumer base. A final thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional mean house income effect future earnings prospects?