Listing ID: 75102
A very busy restaurant because the food is so good the lunch crowd packs the place every day. The staff keeps the restaurant clean and the people move in and out fast while keeping it very clean and beautiful. The franchise is always helpful to their franchisee so very easy to transition to a new owner.
- Asking Price: $550,000
- Cash Flow: $204,000
- Gross Revenue: $840,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $5,000
- Inventory Included: N/A
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
2000 sq ft fast food restaurant with 50 seating capacity and POS system.
The seller will train a new owner.
No competition strip center.
The new owner can increase hours and menu.
The business was started in 2020, making the business 2 years old.
The sale doesn't include inventory valued at $5,000*, which ins't included in the listing price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals choose to sell operating businesses. Nonetheless, the real factor and the one they tell you may be 2 absolutely different things. As an example, they might state "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be justifications to attempt to conceal the reality of changing demographics, increased competition, recent decrease in incomes, or a range of other reasons. This is why it is extremely essential that you not depend absolutely on a vendor's word, however rather, make use of the vendor's response along with your overall due diligence. This will paint an extra reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will need to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering points such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that revenue margins are too thin. Lots of organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with vendors that have to be satisfied or may lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the area bring in new customers? Most times, companies have repeat consumers, which develop the core of their daily earnings. Certain elements such as brand-new competitors sprouting up around the location, roadway building and construction, and personnel turn over can affect repeat customers and also negatively impact future incomes. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more individuals that see the business regularly, the higher the opportunity to construct a returning client base. A final thought is the basic location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood mean family income impact future income prospects?