Listing ID: 73017
Well-established bakery with two locations in Oklahoma. There menu includes cheesecakes, cookies, cakes, sweet breads, pies, and cupcakes. Products are baked fresh daily. This is a totally turnkey franchise business with years of repeat customers and great employees with the equipment and inventory to carry on a great reputation.
- Asking Price: $250,000
- Cash Flow: $105,823
- Gross Revenue: $969,600
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $7,500
- Inventory Included: Yes
- Established: 2010
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
For a reasonable period of time
To pursue other interests
Very little competition in the market they serve.
Additional advertising and promotion could greatly increase sales.
The business was established in 2010, making the business 12 years old.
The transaction will include inventory valued at $7,500, which is included in the requested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nevertheless, the genuine factor and the one they say to you might be 2 totally different things. As an example, they may claim "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competition, recent decrease in incomes, or a variety of various other factors. This is why it is extremely vital that you not rely entirely on a vendor's word, however instead, make use of the seller's response combined with your total due diligence. This will paint a much more reasonable image of the business's present circumstance.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses take out loans so as to cover points such as supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that earnings margins are too tight. Lots of organisations come under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that need to be met or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area bring in new clients? Most times, businesses have repeat clients, which create the core of their everyday revenues. Certain elements such as new competitors sprouting up around the location, roadway construction, and also staff turnover can impact repeat consumers as well as negatively impact future revenues. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Clearly, the more people that see the business on a regular basis, the better the possibility to develop a returning client base. A final thought is the general area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Exactly how might the neighborhood typical family income influence future income prospects?