Business Overview

Founded in 1960, TacoTime is a quick-service restaurant chain offering a tasty variety of freshly-prepared, home style, Mexican fare, in nearly 300 locations across the West and Southern US. Taco Time is owned by Kahala Brands. Kahala Brands is one of the fastest growing franchising companies in the world with a portfolio of 29 quick-service restaurant brands and thousands of locations across 30 countries. Franchisor requires a minimum credit score of 680, a minimum net worth of $250,000, and the required liquid capital of $160,000.
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  • Asking Price: $1,450,000
  • Cash Flow: $426,842
  • Gross Revenue: $5,089,910
  • EBITDA: $426,842
  • FF&E: $535,000
  • Inventory: $68,000
  • Inventory Included: N/A
  • Established: 1978

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:N/A
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

6 locations have drive thru windows. All FF&E to be in good working condition prior to change over.

Is Support & Training Included:

Training provided on site.

Purpose For Selling:

Other business interests

Pros and Cons:

Locations are within 30 minutes of one another. Each store has a manager. Sales up over 20% from last year.

Opportunities and Growth:

Growth in brand via new development of acquisition of existing units.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was founded in 1978, making the business 44 years old.
The deal shall not include inventory valued at $68,000*, which ins't included in the suggested price.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell companies. However, the genuine factor vs the one they say to you might be 2 absolutely different things. For instance, they may state "I have a lot of other responsibilities" or "I am retiring". For lots of sellers, these reasons are valid. However, for some, these may just be excuses to try to conceal the reality of changing demographics, increased competition, current reduction in incomes, or a variety of other reasons. This is why it is extremely important that you not depend totally on a seller's word, however rather, utilize the seller's solution combined with your general due diligence. This will paint a more realistic picture of the business's current situation.

Existing Debts and Future Obligations

If the existing entity is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can indicate that profit margins are too tight. Many companies come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be satisfied or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract brand-new customers? Most times, businesses have repeat clients, which develop the core of their everyday revenues. Certain aspects such as brand-new competitors growing up around the area, road construction, and also employee turn over can impact repeat customers as well as adversely affect future earnings. One vital point to take into consideration is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business regularly, the greater the possibility to develop a returning client base. A last idea is the basic location demographics. Is the business located in a densely inhabited city, or is it located on the edge of town? Exactly how might the regional mean house earnings impact future revenue prospects?