Listing ID: 78565
Great Wing Franchise:
5-Year Lease till 2025
Electric $600/Month (approximate)
Food 40% of Gross Income
Franchise Transfer Fee $10,000
5% Royalty Fee on Gross Sales
$112,548 Jan. – Mar. 2021
$100,462 Apr. – Jun. 2021
$100,171 Jul. – Sept. 2021
$80,000 Oct. – Dec. 2021
Total Gross Income About $393,000 Per Year.
Buyer Profile required with NDA to visit the business.
Net Income about $80,000 – $100,000 per Year depending on how active the owner is at the business
- Asking Price: $165,000
- Cash Flow: $80,000
- Gross Revenue: $393,000
- EBITDA: N/A
- FF&E: $50,000
- Inventory: N/A
- Inventory Included: Yes
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,000
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The company was started in 2016, making the business 6 years old.
The business has 3 employees and is located in a building with estimated square footage of 1,000 sq ft.
The property is leased by the company for $3,500 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people resolve to sell companies. However, the real factor and the one they say to you might be 2 entirely different things. As an example, they may say "I have a lot of other obligations" or "I am retiring". For numerous sellers, these factors are valid. But, for some, these might just be excuses to try to hide the reality of altering demographics, increased competitors, current reduction in incomes, or a variety of various other reasons. This is why it is very vital that you not rely entirely on a seller's word, but rather, use the seller's response in conjunction with your total due diligence. This will paint a more sensible picture of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which many businesses are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money with the purpose of covering things like supplies, payroll, accounts payable, etc. Bear in mind that in some cases this can suggest that revenue margins are too small. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with suppliers that need to be fulfilled or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area attract brand-new customers? Most times, businesses have repeat clients, which create the core of their everyday profits. Certain aspects such as new competition growing up around the location, road building, and employee turnover can affect repeat customers and also adversely influence future profits. One important thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the greater the opportunity to build a returning customer base. A last thought is the general area demographics. Is the business placed in a densely inhabited city, or is it located on the edge of town? How might the neighborhood mean household income impact future revenue potential?