Listing ID: 72544
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: $250,000
- 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 sorts of reasons individuals resolve to sell companies. However, the true factor vs the one they say to you may be 2 totally different things. As an example, they might claim "I have too many various commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, current reduction in profits, or an array of other reasons. This is why it is really essential that you not depend completely on a seller's word, however instead, use the seller's solution along with your overall due diligence. This will paint an extra realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will need to consider this when valuating/preparing your offer. Numerous businesses finance loans with the purpose of covering items such as supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that earnings margins are too small. Numerous organisations fall into a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be fulfilled or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area draw in new consumers? Many times, companies have repeat customers, which develop the core of their everyday revenues. Specific elements such as new competition growing up around the area, road building and construction, as well as staff turnover can impact repeat consumers and also negatively influence future profits. One essential thing to consider is the location of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business often, the better the chance to build a returning client base. A last idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outskirts of town? Exactly how might the local average family earnings effect future revenue prospects?