Listing ID: 73633
Per Franchisor regulations, Buyer needs to contact agent and complete non-disclosure agreement and personal financial statement prior to receiving sales and cash flow information. Little Caesar’s is one of the largest and fastest the growing pizza carry-out chains in the world with restaurants on five continents. Franchisor requires a minimum of 700 credit score, $250,000 net worth or 70% of purchase price, whichever is higher with $100,000 liquid cash or 20% of purchase price, whichever is higher. IRA and 401K not acceptable as liquid, only items that can be liquidated within 24 hours. Restaurant experience is preferred.
- Asking Price: $175,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $6,500
- Inventory Included: N/A
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,250
- Lot Size:N/A
- Total Number of Employees:10
- Furniture, Fixtures and Equipment:N/A
All FF&E to be in good working condition prior to change over.
Franchisor to offer 6 weeks of training.
Other business interests
Growth in brand via new development and acquisition of existing units.
The venture was established in 2013, making the business 9 years old.
The deal shall not include inventory valued at $6,500*, which ins't included in the listing price.
The company has 10 employees and is located in a building with estimated square footage of 1,250 sq ft.
The property is leased by the company for $1,450 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell operating businesses. However, the genuine factor and the one they tell you might be 2 totally different things. As an example, they may say "I have way too many other commitments" or "I am retiring". For many sellers, these reasons are valid. However, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competition, recent reduction in revenues, or a range of other reasons. This is why it is extremely important that you not depend absolutely on a seller's word, however instead, utilize the vendor's response in conjunction with your general due diligence. This will paint a more realistic picture of the business's present scenario.
Existing Debts and Future Obligations
If the current company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering items like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can mean that revenue margins are too small. Numerous businesses fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that should be met or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the area draw in brand-new clients? Many times, businesses have repeat clients, which form the core of their day-to-day earnings. Specific elements such as brand-new competition sprouting up around the location, road building, as well as staff turn over can affect repeat consumers and also negatively affect future profits. One important point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the highway? Clearly, the more individuals that see the business regularly, the higher the chance to develop a returning client base. A last idea is the general area demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Exactly how might the neighborhood mean family earnings impact future income potential?