Business Overview

This very popular national sandwich franchise is located in a local mall in Northwest Harris County. They have a great customer base of mall employees and patrons. Covid affected sales/earnings in 2020 and early 2021 but end of year 2021 sales grew 56% over 2020 sales. They have almost hit pre-Covid sales levels. ROI is just barely over 1 year! Absentee owner has over 20 other fast-food restaurants and has committed to opening many more under a different brand name and needs to divest himself of this brand/location. The shop serves fresh, healthy wraps with tasty combinations of meats, real cheeses, a variety of produce and delicious sauces. Also on the menu are customized sandwiches, Gyros, Philly Cheesesteaks, salads, pitas, subs, baked fries and rice bowls all made with fresh ingredients and lots of flavor! Beginning in 1989 this franchise is one of the largest in its industry with 51 franchise locations currently over 15 states in the US; 9 of them in the Houston area. Royalties are 6% and transfer fee of $7,500 to be paid by buyer. Some seller financing available. Please refer to CBB Listing #8260

Financial

  • Asking Price: $125,000
  • Cash Flow: $120,642
  • Gross Revenue: $665,947
  • EBITDA: N/A
  • FF&E: $197,500
  • Inventory: $2,000
  • Inventory Included: Yes
  • Established: 2010

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:688
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

688sf facility in shopping center

Is Support & Training Included:

Seller will train

Purpose For Selling:

Owner owns 20+ other brands / locations and is focusing on another brand,

Opportunities and Growth:

Catering focus and more marketing with 3rd party delivery companies. Possibly save 1% or so on food costs by shopping around for some nonproprietary items.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The venture was started in 2010, making the business 12 years old.
The transaction does include inventory valued at $2,000, which is included in the suggested price.

The company has 4ft; 5pt employees and is located in a building with disclosed square footage of 688 sq ft.
The building is leased by the company for $13,216.62 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why individuals resolve to sell companies. Nevertheless, the true reason and the one they say to you might be 2 entirely different things. As an example, they might claim "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. However, for some, these may just be reasons to try to hide the reality of altering demographics, increased competition, current reduction in incomes, or a range of various other reasons. This is why it is extremely important that you not rely entirely on a vendor's word, but rather, make use of the vendor's answer in conjunction with your total due diligence. This will paint a much more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the current company is in debt, which many businesses are, then you will need to consider this when valuating/preparing your deal. Many businesses finance loans so as to cover items like stock, payroll, accounts payable, and so on. Remember that sometimes this can mean that revenue margins are too tight. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future obligations to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with vendors that must be satisfied or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location draw in brand-new customers? Most times, operating businesses have repeat customers, which form the core of their everyday earnings. Particular factors such as brand-new competitors growing up around the area, road construction, and personnel turnover can affect repeat consumers as well as adversely impact future revenues. One crucial point to think about is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business on a regular basis, the better the opportunity to develop a returning client base. A last idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Just how might the neighborhood mean family earnings impact future earnings prospects?