Listing ID: 81382
Franchise QSR serving hamburgers and other related items. Business is a simple concept with strong profits and is located in a heavy foot traffic area with repeat customers.
- Asking Price: $299,000
- Cash Flow: $151,000
- Gross Revenue: $638,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $9,000
- Inventory Included: Yes
- Established: 2018
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
931 square foot store front
Seller training available along with franchisor training.
The company was founded in 2018, making the business 4 years old.
The transaction shall include inventory valued at $9,000, which is included in the asking price.
The business has 5 employees and resides in a building with approx. square footage of N/A sq ft.
The real estate is leased by the company for $8,799 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals decide to sell operating businesses. However, the real factor and the one they tell you may be 2 absolutely different things. As an example, they might claim "I have way too many other commitments" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these might just be justifications to try to hide the reality of altering demographics, increased competition, current decrease in incomes, or an array of various other factors. This is why it is extremely crucial that you not count completely on a seller's word, yet instead, utilize the seller's solution in conjunction with your overall due diligence. This will repaint a much more realistic picture of the business's current situation.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans so as to cover points such as stock, payroll, accounts payable, and so on. Remember that occasionally this can mean that earnings margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with vendors that should be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area attract brand-new customers? Most times, operating businesses have repeat consumers, which develop the core of their daily profits. Specific variables such as brand-new competition sprouting up around the area, roadway building, as well as personnel turnover can impact repeat consumers and also adversely influence future revenues. One crucial thing to take into consideration is the area of the business. Is it in a highly trafficked shopping center, or is it hidden from the main road? Undoubtedly, the more people that see the business regularly, the higher the possibility to develop a returning customer base. A final thought is the general area demographics. Is the business situated in a largely populated city, or is it situated on the edge of town? Exactly how might the local mean home income influence future earnings potential?