Listing ID: 74734
Franchise MONEY-MAKER that customers just LOVE! And why not… offering Italian ice, frozen custard, milkshakes and lots of other goodies puts a big smile on their faces. This little shop is an excellent business that’s easy to operate, features quality products that have been tested in multiple markets throughout the country and has a very manageable footprint which makes for a n excellent rent/occupancy cost = profitability. This price includes two (2) franchise units, one open and operating and a future location TBD with the equipment already purchased. Call for details. $290,000 #3133
- Asking Price: $290,000
- Cash Flow: N/A
- Gross Revenue: N/A
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2013
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Facilities Sq. Ft.: 417 Lot Sq. Ft.: Common Area Parking: Common Area Seating: N/A Total Monthly Rent: $1,111.18 Lease Expiration Date: 7/21/2021 Lease Deposit: $900.00 Renewal Options: TBD
Up to 4 weeks (2 by owner + 2 by franchisor)
other business interests
The venture was founded in 2013, making the business 9 years old.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. Nonetheless, the genuine factor and the one they tell you might be 2 entirely different things. For instance, they might say "I have way too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may just be reasons to try to hide the reality of changing demographics, increased competitors, current decrease in revenues, or a range of various other factors. This is why it is really important that you not count completely on a vendor's word, but instead, use the vendor's response in conjunction with your total due diligence. This will paint a much more realistic picture of the business's existing circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many businesses borrow money in order to cover things such as inventory, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can suggest that revenue margins are too small. Numerous businesses come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with suppliers that must be satisfied or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location draw in new clients? Often times, operating businesses have repeat clients, which develop the core of their daily profits. Specific variables such as new competition sprouting up around the area, road construction, and also employee turnover can affect repeat clients as well as adversely influence future earnings. One vital point to think about is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning consumer base. A final idea is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outside border of town? Exactly how might the local typical family earnings effect future earnings potential?