Business Overview

A Subway Franchise opportunity (retail store in a prime high-traffic location with scores of big box names surrounding it) is for sale. Sales volume today are back to 100% of the pre-COVID mark and rising, so now is the time to buy. Three delivery services support for this location. The store is sparkling clean (opened in 2016 with the same manager in place since opening).
It is currently operated by an absentee owner, but an owner-operator can further increase profitability. It is also ideal for business expansion with an existing Subway owner. It is a complete turnkey operation with instant brand recognition.
Consistently rated as the top restaurant chain in total restaurant count in the Quick Service Industry, the brand provides world-class support (training, advertising and promotions and much more). The absentee owner is looking to move to other business interests

Financial

  • Asking Price: $200,000
  • Cash Flow: $87,901
  • Gross Revenue: $400,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $6,000
  • Inventory Included: Yes
  • Established: 2016

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
Purpose For Selling:

Absentee owner is looking to move to other business interests.

Additional Info

The company was established in 2016, making the business 6 years old.
The sale does include inventory valued at $6,000, which is included in the suggested price.

The business has 2 employees and is situated in a building with approx. square footage of N/A sq ft.
The property is leased by the business for $5,400 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell businesses. However, the true reason vs the one they tell you may be 2 entirely different things. For instance, they may say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors stand. However, for some, these might simply be excuses to try to conceal the reality of altering demographics, increased competition, current decrease in earnings, or a range of various other reasons. This is why it is really essential that you not rely completely on a vendor's word, however instead, use the seller's answer in conjunction with your overall due diligence. This will repaint a much more practical picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of companies take out loans so as to cover points such as stock, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that profit margins are too thin. Lots of organisations come under 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 commitments to consider. 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 satisfied or might result in fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new clients? Most times, operating businesses have repeat clients, which form the core of their everyday earnings. Certain variables such as brand-new competitors growing up around the area, roadway construction, and also staff turnover can affect repeat clients and also negatively influence future profits. One vital point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business often, the greater the opportunity to develop a returning client base. A last idea is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? How might the neighborhood median house earnings influence future earnings potential?