Business Overview

This well known and beloved sandwich shop franchise brand has been around over 40 years! Savvy entrepreneurs with a passion for the brand, a love for their community and the ability to follow the proven business model are the perfect candidates.

All the initial investment has been made and the store is primed and ready for a new owner. After the execution of the franchise agreement the incoming franchisee will receive the necessary training.

Financial

  • Asking Price: $325,000
  • Cash Flow: $218,712
  • Gross Revenue: $665,497
  • EBITDA: N/A
  • FF&E: $98,492
  • Inventory: $2,800
  • Inventory Included: Yes
  • Established: 2003

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The store is located in the town's main Community Shopping Center near the major anchor. It is well situated on an endcap with lots of visibility and ample adjacent parking. The center is well maintained and in a very clean business district. Neighboring businesses in the center generate additional foot traffic. The shop is 1500SF @ $5323/month including NNN and has a lease that expires June 2023 with 2 - 5 year options to renew.

Is Support & Training Included:

Will train for 1 week @ $0 cost. After the execution of the franchise agreement the incoming franchisee will receive the necessary. It would be helpful to have knowledge of personnel management, food service operations, basic bookkeeping, and customer service skills.

Purpose For Selling:

Owner is moving on to the next challenge.

Pros and Cons:

This $22.6B Industry that specializes in preparing and serving custom sandwiches and subs has experienced growth over most of the five years to 2021 by capitalizing on the growing awareness of the health risks associated with a high-fat diet. Current trends are expected to spur revenue growth, which will likely rise an annualized 2.6% to $25.7 billion over the five years to 2026.

Opportunities and Growth:

The owner asserts that since they established delivery service, revenues have surged. He suggests promoting catering will help to increase earnings. IBISWorld reports Industry operators will likely continue to contend with stiff external competition from other fast-casual food options moving forward. In turn, many operators will likely continue to expand menu options to include a wider variety of healthy food options. As the economy recovers from the coronavirus pandemic and industry establishments reopen completely, increases in consumer spending will likely boost demand for industry services, which may incentivize new operators to enter the industry. Therefore, these trends are expected to spur revenue growth, which will likely rise an annualized 2.6% to $25.7 billion over the five years to 2026.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was founded in 2003, making the business 19 years old.
The transaction will include inventory valued at $2,800, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons individuals decide to sell companies. Nonetheless, the true reason vs the one they say to you might be 2 completely different things. As an example, they might state "I have too many other responsibilities" or "I am retiring". For many sellers, these factors stand. However, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in profits, or an array of various other factors. This is why it is extremely essential that you not count entirely on a vendor's word, but rather, use the seller's answer together with your total due diligence. This will paint an extra reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Lots of companies borrow money in order to cover points such as supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can suggest that revenue margins are too small. Lots of businesses fall into a revolving door of taking on debt as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the area draw in brand-new customers? Most times, businesses have repeat clients, which create the core of their daily revenues. Specific elements such as brand-new competitors sprouting up around the area, roadway construction, and also staff turnover can influence repeat clients as well as negatively impact future revenues. One vital thing to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business often, the greater the opportunity to construct a returning customer base. A last thought is the general location demographics. Is the business located in a densely populated city, or is it located on the edge of town? Just how might the neighborhood average household income influence future revenue prospects?