Listing ID: 81157
Growing Subway franchise with an OWNER WHO WORKS (8) Hours per week. Sales are UP over 27% in 2021. Buyer must qualify to assume an existing SBA loan of approx. . $95,000 with approx. $38,000 down. Seller pays her existing manager about $16.00 per hour. There are presently (2) full time and 10 part time employees. Existing payroll runs 25%. This business is designed for an owner/operator working 50 hours per week. As an owner/operator payroll will be reduced by no less than 5%. This amounts to a whopping $18,000 in savings to YOU which is in addition to the net income above. Buyer must pay franchisor a transfer fee and Buyer must go thru (2) weeks of local training. Price can be reduced for a cash deal of $125,000. The store lease will be extended with (2) five year options
- Asking Price: $133,000
- Cash Flow: N/A
- Gross Revenue: $543,032
- EBITDA: $77,246
- FF&E: $60,000
- Inventory: $3,000
- Inventory Included: N/A
- Established: 2006
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,520
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Plenty of parking. High traffic count. Has drive thru.
Buyer will be required to pass a common sense test and go through (2) weeks of training in a Subway store hopefully close to this one.
Has another full time profession and does not like to deal with employees
Considering the high traffic location it is odd that there is VERY LITTLE competition.
Franchisees are known for owning there first store and after two years expanding into a second location
The company was founded in 2006, making the business 16 years old.
The transaction won't include inventory valued at $3,000*, which ins't included in the listing price.
The business has 12 employees and is situated in a building with approx. square footage of 1,520 sq ft.
The property is leased by the business for $2,550 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons why people resolve to sell operating businesses. Nonetheless, the real factor and the one they tell you may be 2 totally different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be reasons to try to hide the reality of changing demographics, increased competition, recent reduction in incomes, or a range of other reasons. This is why it is extremely crucial that you not count totally on a seller's word, but instead, make use of the seller's answer in conjunction with your overall due diligence. This will repaint an extra reasonable picture of the business's current situation.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Numerous businesses finance loans with the purpose of covering points such as inventory, payroll, accounts payable, etc. Remember that occasionally this can imply that profit margins are too thin. Numerous companies fall under a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may likewise be future commitments to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that need to be met or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do companies in the location draw in brand-new customers? Many times, companies have repeat consumers, which develop the core of their everyday earnings. Specific elements such as new competition growing up around the area, roadway construction, and personnel turn over can impact repeat clients and adversely influence future profits. One essential thing to think about is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business regularly, the better the opportunity to develop a returning consumer base. A final idea is the general area demographics. Is the business situated in a largely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood mean home income influence future income potential?