Business Overview

The current owners are absentee and have other interests that take away their time and attention. The restaurant needs a hands on owner/operator to be successful or a new owner could convert to a new concept. The sellers spent over $200k in leasehold improvements and FF&E and the rent is under market. The restaurant is located on an endcap off a very busy thoroughfare in a fast growing community and is prime to be profitable or be converted.

Seller’s are willing to entertain reasonable offers and open to a seller note for a quick transaction. Occupancy costs are under 10% however food purchases ran 37% and payroll and contract labor expense was 39% in 2020. An owner operator could get these prime costs to 60%-65% and save over $80,000 a year if they kept the same concept.

Purchasing the business entity that owns the business may be an option where all permits and licenses stay in place. The seller will entertain carrying some of the note but prefers an all cash deal.

Financial

  • Asking Price: $165,000
  • Cash Flow: N/A
  • Gross Revenue: $609,570
  • EBITDA: N/A
  • FF&E: $145,000
  • Inventory: $2,500
  • Inventory Included: N/A
  • Established: 2020

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,593
  • Lot Size:N/A
  • Total Number of Employees:6
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

2593 SF end cap with patio in newly constructed strip center off of a high traffic thoroughfare. The FF&E is lightly used. Owners spent over $200,000 in leasehold improvements and FF&E. A buyer could keep the concept or convert to their own.

Is Support & Training Included:

30 days of training. More time is negotiable.

Purpose For Selling:

The owners are absentee and have other interests.

Pros and Cons:

Competition is inevitable in the restaurant industry. This burger franchise only serves fresh angus beef, hand cut fries and onion rings, premium cocktails, craft beer, daily specials, car shows and more. The community is fast growing and needs quality restaurants to satisfy demands.

Opportunities and Growth:

An owner operator can create a profitable business very quickly and there are options with the franchisor to expand into more locations. The business would benefit from more of an on-line presence and marketing, ease and effectiveness of ordering on-line for pick up, engagement with the local community and more.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was founded in 2020, making the business 2 years old.
The transaction doesn't include inventory valued at $2,500*, which ins't included in the suggested price.

The business has 6 employees and is situated in a building with approx. square footage of 2,593 sq ft.
The property is leased by the business for $6,800 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell businesses. Nonetheless, the true reason and the one they tell you might be 2 absolutely different things. For instance, they may say "I have too many various responsibilities" or "I am retiring". For many sellers, these factors stand. But, for some, these may simply be reasons to attempt to conceal the reality of changing demographics, increased competition, current reduction in incomes, or an array of other factors. This is why it is really crucial that you not depend absolutely on a vendor's word, yet instead, make use of the seller's solution together with your total due diligence. This will paint an extra sensible picture of the business's current situation.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Lots of businesses borrow money so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that revenue margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may also be future commitments to consider. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with suppliers that must be satisfied or may result in charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location attract brand-new customers? Often times, companies have repeat clients, which form the core of their day-to-day profits. Certain elements such as brand-new competition growing up around the location, roadway building, and staff turn over can influence repeat consumers as well as adversely impact future profits. One important thing to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it hidden from the main road? Clearly, the more individuals that see the business on a regular basis, the higher the chance to construct a returning customer base. A final thought is the general area demographics. Is the business situated in a densely inhabited city, or is it located on the outside border of town? Just how might the neighborhood typical home income influence future income prospects?