Listing ID: 81537
A popular and established indoor park franchise location in a top-25 central Illinois city is ready for its next owner.
In business for a number of years, everything is set for continued growth and expansion – equipment is in place, employees hired and trained along with seasoned management team and, of course, repeat clientele.
This indoor entertainment facility is designed to provide a variety of activities no matter what age – from climbing walls to bouncing along on connected trampolines.
Ownership team willing to stay on for a period of time for seamless local transition and the franchisor supplements that with the proven support that has made it a recognized entertainment experience.
Property and building are also being offered so call for more details!
- Asking Price: $3,900,000
- Cash Flow: $402,075
- Gross Revenue: $756,629
- EBITDA: N/A
- FF&E: $756,629
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:35
- Furniture, Fixtures and Equipment:N/A
Why is the Current Owner Selling The Business?
There are all types of reasons people decide to sell companies. Nevertheless, the genuine factor and the one they tell you may be 2 entirely different things. For instance, they may say "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors stand. But, for some, these may simply be justifications to try to hide the reality of changing demographics, increased competition, current decrease in profits, or an array of various other factors. This is why it is very vital that you not count completely on a seller's word, however rather, utilize the seller's answer in conjunction with your total due diligence. This will repaint a much more practical picture of the business's present scenario.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Lots of operating businesses borrow money so as to cover things like inventory, payroll, accounts payable, and so on. Remember that sometimes this can imply that revenue margins are too small. Many businesses fall into a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that must be fulfilled or may lead to charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract new consumers? Most times, businesses have repeat clients, which develop the core of their everyday revenues. Specific variables such as brand-new competitors growing up around the location, road building and construction, as well as personnel turnover can influence repeat customers and also adversely influence future incomes. One important point to think about is the location of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the highway? Certainly, the more individuals that see the business regularly, the greater the chance to build a returning client base. A last thought is the general location demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the regional typical home income influence future revenue potential?