Business Overview

Subscription business with monthly, and weekly clients

This is a great opportunity to own a turn-key, well-established subscription business that provides a much-needed service. Step into a business that has 90%+ regular repeat customers with an average retention of more than 12 years.

This franchisor has grown to be one of the largest domestic cleaning companies throughout the U.S. They are dedicated to providing families with state of-the-art home cleaning service through their network of franchisees.

The territories for sale with this business have great demographics with a very high average household income and are prime targets to purchase household cleaning services. A new owner with the drive to expand will find plenty of potential customers in these Boston suburbs.

Financial

  • Asking Price: $274,900
  • Cash Flow: $140,000
  • Gross Revenue: $689,000
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1996

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,800
  • Lot Size:N/A
  • Total Number of Employees:11
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Extensive franchisor training

Purpose For Selling:

Retirement

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was established in 1996, making the business 26 years old.

The company has 11 employees and resides in a building with disclosed square footage of 1,800 sq ft.
The building is leased by the business for $2,200 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell companies. Nevertheless, the real reason vs the one they say to you may be 2 entirely different things. For instance, they may state "I have way too many other responsibilities" or "I am retiring". For many sellers, these reasons stand. But also, for some, these may just be justifications to attempt to hide the reality of transforming demographics, increased competition, recent decrease in revenues, or an array of other factors. This is why it is extremely crucial that you not rely completely on a vendor's word, yet instead, utilize the vendor's answer in conjunction with your general due diligence. This will repaint a much more sensible picture of the business's present situation.

Existing Debts and Future Obligations

If the current entity is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your offer. Numerous companies borrow money with the purpose of covering points like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can suggest that earnings margins are too small. Lots of companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be met or may lead to fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in brand-new clients? Many times, companies have repeat clients, which develop the core of their daily earnings. Certain factors such as brand-new competition growing up around the area, road construction, and employee turnover can impact repeat consumers and adversely impact future revenues. One vital point to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the chance to construct a returning client base. A final idea is the basic area demographics. Is the business located in a densely populated city, or is it situated on the outskirts of town? Just how might the regional mean house income effect future earnings prospects?