Business Overview

This franchise pretzel store was established almost 30 years ago and is located in one of the premier shopping malls in the New York/New Jersey/Connecticut metropolitan area. The business offers premium pretzel products, shakes/frozen products, and soft drinks. The business has over twenty trained employees in two premium locations. In addition, the business offers catering and a third party delivery program to its customers.

In 2019 the business had a revenue of $885k with seller’s discretionary earnings of $123k. The seller is looking to retire and is asking $375,000 for both locations.

Financial

  • Asking Price: $375,000
  • Cash Flow: $123,000
  • Gross Revenue: $885,000
  • EBITDA: N/A
  • FF&E: $80,000
  • Inventory: $3,500
  • Inventory Included: N/A
  • Established: 1996

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:890
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business is located in a vibrant mall with shopping, restaurants and other retail.

Is Support & Training Included:

Seller will stay on for up to one month to train the new owner to ensure a smooth transition, if needed.

Purpose For Selling:

Retirement

Pros and Cons:

There are other pretzel stores that compete for the business, but this is one of the most established stores in the area.

Opportunities and Growth:

The business recently introduced a catering program and third-party delivery programs to increase its reach and access to its customer base.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was founded in 1996, making the business 26 years old.
The deal shall not include inventory valued at $3,500*, which ins't included in the listing price.

The company has 6 FT, 8 PT employees and is located in a building with estimated square footage of 890 sq ft.
The property is leased by the company for $19,414 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell businesses. Nevertheless, the genuine factor and the one they say to you may be 2 completely different things. As an example, they may state "I have way too many various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be reasons to try to conceal the reality of transforming demographics, increased competitors, recent decrease in revenues, or a variety of various other factors. This is why it is really crucial that you not count completely on a vendor's word, however rather, utilize the seller's answer combined with your overall due diligence. This will paint a much more reasonable image of the business's present circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Numerous businesses finance loans with the purpose of covering things like supplies, payroll, accounts payable, and so on. Keep in mind that occasionally this can indicate that revenue margins are too tight. Lots of companies come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be fulfilled or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract brand-new customers? Most times, companies have repeat customers, which create the core of their day-to-day profits. Certain factors such as brand-new competitors sprouting up around the area, roadway building and construction, as well as staff turn over can impact repeat customers and also negatively impact future revenues. One vital thing to take into consideration is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the better the possibility to build a returning customer base. A last idea is the basic area demographics. Is the business located in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional average home earnings effect future earnings potential?