Listing ID: 77310
Listing # – 5175 RK
High volume dessert franchise serving boba drinks and ice cream.
Franchise corporate-owned flagship store.
It is located in a high-profile, busy outdoor mall with many national franchise restaurants.
Nicely improved interior at a great location.
Low food cost.
Fun franchise to own!
Royalty: 5% including Ad funds.
- Asking Price: $1,490,000
- Cash Flow: $523,000
- Gross Revenue: $1,452,000
- EBITDA: N/A
- FF&E: $100,000
- Inventory: $7,500
- Inventory Included: N/A
- Established: 2020
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,499
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
Franchise Set Up
The venture was started in 2020, making the business 2 years old.
The transaction doesn't include inventory valued at $7,500*, which ins't included in the requested price.
The company has 8 employees and resides in a building with approx. square footage of 1,499 sq ft.
The property is leased by the company for $10,891 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nonetheless, the genuine reason vs the one they say to you may be 2 entirely different things. For instance, they may claim "I have too many other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, current reduction in profits, or an array of various other factors. This is why it is really essential that you not rely entirely on a seller's word, however instead, make use of the seller's response along with your total due diligence. This will paint a much more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your offer. Many operating businesses take out loans in order to cover items such as stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can imply that profit margins are too small. Many businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that must be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new consumers? Most times, companies have repeat clients, which form the core of their day-to-day profits. Certain elements such as brand-new competition growing up around the location, road building, and employee turnover can affect repeat consumers and also negatively impact future revenues. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the greater the possibility to develop a returning client base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? How might the neighborhood median family earnings effect future revenue prospects?