Business Overview

Kitchen with Hood.
Possible conversion to a restaurant.
Well established Subway Sandwich Franchise For Sale in the city of Alameda, California. Just announced: Starting January 2019, Subway is now offering its “Fresh Now” program (a restaurant refresh package) at no cost to franchise owners. This announcement is not a restaurant remodel, instead of a marketing and merchandising refresh program that lays the groundwork for all of the great things coming soon – such as menu innovation and restaurant remodels. Subway continues to reinvent itself based on an evaluation of its competition and changing economic times. The new owner will need to be approved by the franchisor.
Two-week training is included in the franchise transfer fee by the Franchisor corporate office. The current owner will also train for two weeks at no cost to the buyer.
All equipment, furniture, and fixtures transfer in the sale.

Financial

  • Asking Price: $249,000
  • Cash Flow: $120,000
  • Gross Revenue: $480,000
  • EBITDA: N/A
  • FF&E: $20,000
  • Inventory: $5,000
  • Inventory Included: N/A
  • Established: N/A

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,244
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A

Additional Info

The sale shall not include inventory valued at $5,000*, which ins't included in the asking price.

The business has 5 employees and resides in a building with approx. square footage of 1,244 sq ft.
The building is leased by the business for $4,200 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals decide to sell businesses. Nevertheless, the real reason vs the one they say to you may be 2 totally different things. For instance, they may state "I have way too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. However, for some, these might just be reasons to try to conceal the reality of changing demographics, increased competitors, current decrease in profits, or an array of various other reasons. This is why it is very vital that you not rely entirely on a seller's word, but instead, make use of the vendor's solution in conjunction with your overall due diligence. This will repaint a more reasonable image of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of businesses borrow money in order to cover items like stock, payroll, accounts payable, etc. Remember that in some cases this can indicate that earnings margins are too thin. Lots of companies fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that should be fulfilled or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area bring in brand-new clients? Many times, companies have repeat customers, which form the core of their everyday earnings. Certain elements such as new competitors sprouting up around the location, roadway construction, as well as employee turn over can affect repeat customers and also adversely influence future revenues. One crucial thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Certainly, the more individuals that see the business often, the greater the chance to build a returning customer base. A last thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional average house earnings effect future income prospects?