Business Overview

Exceptional opportunity to own a highly regarded and recognized Automotive Repair Franchise. The facility and operation are well established and very profitable, operating since 1993. The franchise focuses on transmissions, but covers every aspect of auto repairs bumper to bumper. Great location with high visibility, the facility offers up six bays with 4 twin-post lifts, two drive-on lifts, and transmission building areas. In addition, the shop is well equipped with practically every imaginable specialty tool including automotive computer scanning hardware. The owner’s attention to detail and organization has positioned this business as a clear turn-key opportunity. And the franchise affords a premier training program for technicians. No surprise, the owner fully supports continuing education, employee development, and overall care and support. As an example, the Owner covers 50% of the employee health care costs. All to say that the Owner has built a strong loyal team of technicians and as a result the performance of the business has grown year over year and excelled during the recent pandemic.

Six full time employees complement the space including management, and there is room to grow even beyond the current revenue performance which is nearly $800,000 annually. The overall facility is very well maintained. The equipment in the shop values at $35,000 and is all current and up to date. Inventory hovers at $10,000 included in the purchase. The operation itself exceeds 4,000 square feet at a market competitive lease of $3,500 per month. And, the business has been Pre-Approved by a lender for acquisition with a down payment of $80,000.
This opportunity calls for some experience in the automotive category. But the franchise provides phenomenal training at their corporate office and has a strong regional support arm coupled with a tremendous franchisee support network. Bottom line; there is support every step of the way. And the current owner will offer a smooth transition plan for the right buyer providing on site training and assistance for a reasonable and negotiable period of time.

And it gets better. The Real Estate is offered for sale as well for $350,000. This affords a buyer a grand opportunity as a lender will combine the business and property in one loan package extending the normal loan time table and avoiding the need for a lease. This is an option worth exploring for the afforded financial benefit. But in any event the Owner will accommodate the sale of the property or afford a buyer a lease package.

Financial

  • Asking Price: $395,000
  • Cash Flow: $234,815
  • Gross Revenue: $911,283
  • EBITDA: N/A
  • FF&E: $36,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 1993

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:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The facility offers up six bays with 4 twin-post lifts, two drive-on lifts, and transmission building areas under 4,000 square feet. The business has great street visibility with easy access and adequate parking. The Real Estate associated with the business is for sale offered at $350,000. Or, the Owner will afford a buyer a lease starting at $3,500 per month.

Is Support & Training Included:

Will train for 2 weeks @ $0 cost.

Purpose For Selling:

Retirement.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was started in 1993, making the business 29 years old.
The transaction shall include inventory valued at $10,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people decide to sell operating businesses. However, the true reason and the one they tell you may be 2 completely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to try to hide the reality of altering demographics, increased competitors, recent decrease in earnings, or an array of various other reasons. This is why it is extremely essential that you not count entirely on a seller's word, yet instead, use the seller's response together with your total due diligence. This will repaint an extra practical image of the business's existing scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous businesses take out loans so as to cover items like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that profit margins are too thin. Many companies come under a revolving door of taking loans as a way to pay back various other loans. In addition to 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 may have existing contracts with suppliers that have to be met or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do businesses in the location attract brand-new customers? Many times, companies have repeat clients, which develop the core of their day-to-day revenues. Particular variables such as brand-new competitors sprouting up around the location, road building and construction, as well as personnel turn over can impact repeat clients and also adversely influence future earnings. One vital point to think about is the location of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Obviously, the more people that see the business regularly, the greater the chance to construct a returning client base. A final thought is the basic area demographics. Is the business situated in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood median household earnings effect future earnings prospects?