Business Overview

A franchise educational learning center with rapidly growing sales in East Houston is available for acquisition. Situated in a diverse area of numerous retail businesses and neighborhoods that drive immense traffic to this retail strip center. Within the confines of this 1,391 SF retail strip center space, this learning center thrives under the current market as the convenience of this location as well as the growing population is expediting the growth trend.

Sales were steadily increasing since the inception of this business from 2007 to 2019. After the brand new renovations that were done in 2019, the business has rapid growth in the triple digits and is projected to grow even further in 2022. Management of the daily operations by the current directors and back-office activities done by the owners synergized to create this upward growth.

Marketing from corporate will always bring a consistent stream of customers to this business, but full-time owner involvement in the operation to market this business’s services to the local area are needed to grow to the next level. The owner currently operates this business as an owner-absentee and the new potential buyer can also reap the benefits the current business has by following the footsteps of the current owner.

This is a great opportunity to acquire a national franchise educational learning center poised for tremendous future growth. Potential buyers can expect to reap the benefits of a long-lasting business that will continue to flourish.

Listing ID #001157
For more info, please call Moon Kim at 1-866-519-2421.

Financial

  • Asking Price: $1,100,000
  • Cash Flow: $430,168
  • Gross Revenue: $903,973
  • EBITDA: N/A
  • FF&E: $20,000
  • Inventory: $1,500
  • Inventory Included: Yes
  • Established: 2007

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:

This business is located in a well-positioned retail strip center that has a large market for educational learning centers for students. At the end of 2019, the premises were completely renovated and efficiently downsized to their optimal size of 1,391 SF which has as a result put the size of this center comparable with the average size of other peer centers. In addition, a brand new A/C unit was installed in 2019 as well.

Is Support & Training Included:

The owner of the business will provide the necessary training needed to smoothly transition into the business operation.

Purpose For Selling:

Other Business opportunities

Pros and Cons:

Few competitors are within the immediate market area, but this franchise is the only specialized learning center that has a diverse range of services with customized tutoring for each individual customer.

Opportunities and Growth:

Sales of this business have explosively grown in the last several years through active marketing and positive changes made to the operation. The current operation is run as an owner-absentee business and can grow even further if a potential buyer becomes more involved as an owner-operator.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was founded in 2007, making the business 15 years old.
The transaction will include inventory valued at $1,500, which is included in the asking price.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the true reason vs the one they say to you might be 2 entirely different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For many sellers, these factors stand. However, for some, these might just be excuses to attempt to conceal the reality of transforming demographics, increased competition, recent reduction in profits, or an array of various other factors. This is why it is very vital that you not rely entirely on a vendor's word, yet instead, use the vendor's answer in conjunction with your total due diligence. This will paint a more realistic picture of the business's existing circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies finance loans with the purpose of covering things such as stock, payroll, accounts payable, so on and so forth. Remember that sometimes this can imply that revenue margins are too small. 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 additionally be future obligations to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be met or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract new consumers? Many times, operating businesses have repeat customers, which develop the core of their everyday revenues. Certain variables such as brand-new competition growing up around the area, roadway building, and personnel turnover can affect repeat consumers as well as negatively impact future revenues. One vital point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Certainly, the more individuals that see the business often, the better the possibility to develop a returning customer base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outside border of town? How might the regional median home earnings influence future income potential?