Listing ID: 77572

Business Overview

MONTHLY GROSS: $36,180
MONTHLY RENT: $3,433
LEASE TERMS: 5+5 (NEW LEASE)
STORE SIZE: 1,400 SF
SEATING CAPACITY: 18
OPEN HOURS: 9AM-7PM MON-FRI / CLOSED SAT & SUN
EMPLOYEES: 2 FT, 1 PT
WAGE: $7,712/MO.
OWNER SINCE: 2015
REASON FOR SELLING: RETIRING
FINANCING: 50% DOWN, 50% BANK LOAN
NOTE: LOCATED IN AN INDUSTRIAL AREA.
ONLY OPEN 5 DAYS PER WEEK. TAKE THE WEEKEND OFF.
CHICKEN TERIYAKI IS THE TOP SELLER.
ABOUT 20% FROM ROLLS. SELLER WILL TRAIN.
MOSTLY TO-GO CUSTOMERS. NO DELIVERY.

Financial

  • Asking Price: $215,000
  • Cash Flow: $105,000
  • Gross Revenue: $434,160
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $6,000
  • Inventory Included: N/A
  • Established: N/A

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

1,400 sf. seating for 18. Plenty of parking.

Is Support & Training Included:

Seller will train

Purpose For Selling:

Retiring

Pros and Cons:

Not much competition

Opportunities and Growth:

Open 6 days for more business. Currently not doing any delivery.

Additional Info

The transaction won't include inventory valued at $6,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell businesses. However, the real reason and the one they tell you might be 2 completely different things. As an example, they may claim "I have too many various commitments" or "I am retiring". For many sellers, these factors stand. But also, for some, these might simply be justifications to try to conceal the reality of altering demographics, increased competition, current reduction in incomes, or a range of other factors. This is why it is very crucial that you not count completely on a vendor's word, yet rather, use the seller's solution combined with your total due diligence. This will repaint a more realistic picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses finance loans with the purpose of covering points like supplies, payroll, accounts payable, etc. Remember that sometimes this can suggest that earnings margins are too small. Many businesses fall into a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that need to be met or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in brand-new customers? Many times, companies have repeat consumers, which form the core of their day-to-day revenues. Certain elements such as brand-new competition sprouting up around the area, road construction, and also staff turnover can affect repeat customers as well as negatively influence future profits. One essential point to think about is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the main road? Obviously, the more people that see the business on a regular basis, the better the opportunity to construct a returning client base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Just how might the local typical household income effect future income potential?