Business Overview

This fast casual franchise concept was established in the mid-1980s and became a franchise in 2000. Since then, the chain gained a national and international footprint, with locations concentrated in California, and 5 additional on the west coast with 7 in Asia. Franchisees are at various stages of their 10 year commitments.

Financial

  • Asking Price: $2,250,000
  • Cash Flow: $255,311
  • Gross Revenue: $893,497
  • EBITDA: $255,311
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1986

Detailed Information

  • 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
About The Facility:

This franchisor is extraordinarily efficiently managed, with semi-absentee ownership and only 3 key staffers including a General Manager who has opened more than 50 company locations as well as their 2 direct reports. Of the franchisee locations, the concept’s floor plans call for 1,100 – 1,500 square feet, 12 - 25 seats, with 20% of business dine-in versus 80% take-out or delivery. Their second concept with just under 10 locations boasts a 2,000 – 2,400 square feet footprint. These facilities offer beer and wine via an innovative and novel beverage delivery system.

Is Support & Training Included:

4 Weeks at 20 hrs/wk

Purpose For Selling:

Personal

Pros and Cons:

The competition in the casual dining, fast casual, quick service, take-out and delivery segments of this concept are high. As a result, the overall service offering including its food quality and customer service are tantamount to success, as well as the firm’s advertising and franchisee support programs.

Opportunities and Growth:

New operators may capitalize on this established franchise system to further innovate the offering and overall concept, while bolstering their efforts to sell new locations or territories, or they may pivot by concentrating their efforts on operating corporate locations, with franchise owned ones converting to any modified concept introduced.

Additional Info

The business was started in 1986, making the business 36 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell operating businesses. Nonetheless, the real reason vs the one they say to you might be 2 absolutely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may simply be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in revenues, or a range of various other factors. This is why it is extremely essential that you not count absolutely on a seller's word, however rather, make use of the vendor's solution combined with your general due diligence. This will repaint an extra realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses take out loans so as to cover points such as inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can imply that profit margins are too small. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with vendors that must be satisfied or may result in penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the location draw in brand-new clients? Many times, companies have repeat clients, which create the core of their day-to-day profits. Specific elements such as new competitors growing up around the area, road building, as well as employee turnover can affect repeat customers and also negatively influence future profits. One important point to think about is the placement of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Certainly, the more people that see the business regularly, the higher the opportunity to build a returning consumer base. A last idea is the general location demographics. Is the business placed in a largely inhabited city, or is it located on the outside border of town? Exactly how might the local typical home income influence future revenue prospects?