Business Overview

Texas Restaurant Advisors would like to offer a profitable, well established national hamburger franchise restaurant in North Texas for purchase.

Gross sales in 2021 (less the PPP grant) were $1,158,517.00 while net income was $46,233.00. Adjusted net income (adding back one owner’s salary), earnings are estimated to be $86,073.00. To get the space ready for business in 2017 and 2018, the sellers spent over a $1,000,000 in furniture, fixtures and equipment and leasehold improvements.

The sellers have kept impeccable books and records and will be available for review once a buyer has completed our NDA and completed a brief buyer profile.

Financial

  • Asking Price: $350,000
  • Cash Flow: $86,073
  • Gross Revenue: $1,158,517
  • EBITDA: N/A
  • FF&E: $95,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2018

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,000
  • Lot Size:N/A
  • Total Number of Employees:19
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Approximately 2,000 square foot, inline retail space with a covered patio in an affluent area of North Texas. Equipment is in great, working condition and a buyer will be able to have it inspected before closing.

Is Support & Training Included:

Seller willing to train for 30 days. Buyer may have to undergo franchisor training as well.

Purpose For Selling:

Owners have other full-time, professional positions

Pros and Cons:

Competition is inevitable in the restaurant industry. However, the business enjoys a hamburger exclusion in the shopping center

Opportunities and Growth:

A new owner can expand unique impressions on social media, potentially negotiate better terms with 3rd part delivery companies and more. A marketing fee is paid to the franchisor to coordinate marketing at a corporate level, a new owner could engage at the local level.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was founded in 2018, making the business 4 years old.

The business has 19 employees and resides in a building with estimated square footage of 2,000 sq ft.
The property is leased by the business for $7,429 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell businesses. Nevertheless, the true reason vs the one they say to you may be 2 totally different things. As an example, they might state "I have a lot of other commitments" or "I am retiring". For lots of sellers, these reasons are valid. But also, for some, these may simply be reasons to attempt to hide the reality of transforming demographics, increased competition, current decrease in incomes, or an array of other reasons. This is why it is really important that you not rely totally on a seller's word, but instead, utilize the vendor's answer combined with your total due diligence. This will repaint a more reasonable image of the business's present situation.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of operating businesses finance loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Remember that sometimes this can indicate that profit margins are too thin. Many companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with 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 might have existing agreements with suppliers that need to be fulfilled or may cause charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in new consumers? Many times, businesses have repeat customers, which develop the core of their everyday revenues. Specific elements such as new competition sprouting up around the area, roadway building, and also staff turnover can influence repeat customers and also negatively impact future revenues. One vital thing to consider is the placement of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the possibility to construct a returning client base. A last thought is the basic area demographics. Is the business situated in a largely inhabited city, or is it situated on the edge of town? Exactly how might the regional typical family income effect future income prospects?