Business Overview

TRANSWORLD BUSINESS ADVISORS OF HOUSTON.LISTING REF# 76931-112444

Priced to sell! This sandwich franchise has been open for over 20 years and offers an excellent opportunity for a buyer to get in at a low price as employees start to return to their offices post covid. It also has very family-friendly hours since it’s only open Monday thru Friday 10a-2:30p, which means evenings and weekends off! How often can you do that in the restaurant business?

Schlotzsky’s opened its first location in 1971 with a small restaurant on South Congress Ave. in Austin, Texas. They specialize in combining fresh ingredients, unique flavor combinations and the spirit of originality to give you a food experience that you won’t find anywhere else. The company now has over 300 locations and spans across 35 states, serving up toasted sandwiches, artisan flatbreads, specialty pizzas, freshly tossed salads, gourmet soups and more. Schlotzsky’s is owned by Focus Brands, which also owns Carvel, Cinnabon, Moe’s Southwest Grill, McAlister’s Deli, Auntie Anne’s and Jamba brands.

The business for sale is located in an office retail center and offers dine in, take out, delivery, and catering services. It also includes a Cinnabon franchise. The business consists of 2,979 square feet with monthly lease costs of $5,900 including CAM. The lease has eight years remaining plus two 5-yr options.

This business was established in 1998 and currently has 4 employees. Prior to the pandemic sales ranged between $350,000-$380,000 per year. Per seller’s pro forma, sales are estimated at $365,000 with discretionary earnings of $88,000 for 2022. The listing price includes FF&E of $82,000, Leasehold Improvements of $50,000, and Inventory of $5,000. The seller is motivated to sell and wants to pursue another career opportunity. The seller will provide two weeks of training in addition to the training provided by franchisor.

This location would be perfect for an owner-operator that enjoys working with people and prefers to have evenings and weekends off. There is a lot of potential to increase catering and delivery in the area to nearby businesses. There is also an opportunity to extend store hours to include breakfast in order to maximize Cinnabon sales.

Financial

  • Asking Price: $125,000
  • Cash Flow: $88,695
  • Gross Revenue: $364,930
  • EBITDA: N/A
  • FF&E: $82,000
  • Inventory: $5,000
  • Inventory Included: Yes
  • Established: 1998

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:2,979
  • Lot Size:N/A
  • Total Number of Employees:4
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

2 weeks

Purpose For Selling:

other business interests

Established Franchise:

This Business Is An Established Franchise

Additional Info

The venture was founded in 1998, making the business 24 years old.
The transaction does include inventory valued at $5,000, which is included in the asking price.

The company has 4 employees and resides in a building with estimated square footage of 2,979 sq ft.
The real estate is leased by the company for $5,900 per Month

Why is the Current Owner Selling The Business?

There are all types of reasons why people choose to sell businesses. However, the real reason and the one they say to you may be 2 completely different things. For instance, they might state "I have too many various commitments" or "I am retiring". For many sellers, these factors are valid. But, for some, these may just be reasons to attempt to conceal the reality of altering demographics, increased competitors, recent reduction in incomes, or an array of other factors. This is why it is very vital that you not count completely on a vendor's word, yet instead, use the vendor's answer combined with your general due diligence. This will paint a more practical image of the business's current circumstance.

Existing Debts and Future Obligations

If the current business is in debt, which numerous businesses are, then you will have reason to consider this when valuating/preparing your offer. Lots of businesses finance loans in order to cover things such as supplies, payroll, accounts payable, so on and so forth. Keep in mind that occasionally this can imply that profit margins are too thin. Many organisations fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to consider. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be fulfilled or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the location draw in new customers? Many times, companies have repeat consumers, which create the core of their daily profits. Certain factors such as new competition growing up around the location, road building, as well as employee turnover can affect repeat consumers and also adversely impact future revenues. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Clearly, the more people that see the business often, the better the chance to develop a returning client base. A last idea is the basic area demographics. Is the business situated in a largely inhabited city, or is it located on the outskirts of town? How might the regional mean house income impact future earnings potential?