Listing ID: 80227
Established, profitable concept with exceptional location and lease. Full time, seasoned manager and stable staff allow an owner to have minimal involvement. Under market lease in prime space. Some utilities included. Excellent Franchise support including efficient operating systems and leveraged purchasing of branded ingredients.
- Asking Price: $550,000
- Cash Flow: $143,000
- Gross Revenue: $747,500
- EBITDA: N/A
- FF&E: $30,000
- Inventory: $6,000
- Inventory Included: Yes
- Established: 2017
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,264
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Efficient kitchen, inviting counter. Limited counter seating.
Steady growth with big upside.
The company was established in 2017, making the business 5 years old.
The transaction shall include inventory valued at $6,000, which is included in the suggested price.
The company has 12 employees and is situated in a building with estimated square footage of 1,264 sq ft.
The property is leased by the business for $4,000 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people choose to sell companies. Nonetheless, the genuine reason vs the one they tell you might be 2 completely different things. As an example, they may state "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is very crucial that you not count entirely on a seller's word, however rather, use the seller's response together with your total due diligence. This will paint an extra sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Many operating businesses borrow money in order to cover points like supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can indicate that revenue margins are too thin. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that have to be satisfied or may cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the location bring in brand-new clients? Often times, businesses have repeat customers, which create the core of their day-to-day revenues. Specific factors such as new competitors sprouting up around the area, road building, as well as employee turnover can affect repeat consumers and also adversely impact future earnings. One important thing to consider is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the higher the opportunity to construct a returning consumer base. A final thought is the general location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the regional median family earnings influence future income prospects?