Listing ID: 71297
Busy franchised community auto repair shop owned and operated locally by the owner. The shop has a history of providing high-quality auto repair services at a fair price. They are located on a busy main thoroughfare with access to major highways nearby. Adjacent to a busy shopping area and convenient for customers to get to.
The facility has 6 bays and 5 Lifts with approx 4,000 square feet of space. The property is owned by Midas and the lease has just been renewed. As a Midas franchisee, you have the freedom to operate independently with an experienced team behind you providing outstanding support, resources, and training to help you excel as an owner.
- Asking Price: $425,000
- Cash Flow: $159,000
- Gross Revenue: $796,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: Yes
- Established: 1985
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,000
- Lot Size:N/A
- Total Number of Employees:4
- Furniture, Fixtures and Equipment:N/A
A new owner could increase revenue by hiring more technicians and increasing the hours as well as opening on the weekend. Very little local advertising is being done now so an increase in the advertising activity should bring in more business.
This Business Is An Established Franchise
The business was established in 1985, making the business 37 years old.
The company has 4.5 employees and is situated in a building with disclosed square footage of 4,000 sq ft.
The building is leased by the business for $5,467 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell operating businesses. Nonetheless, the real reason and the one they say to you may be 2 entirely different things. For instance, they might say "I have way too many other obligations" or "I am retiring". For many sellers, these factors stand. However, for some, these might simply be reasons to try to hide the reality of transforming demographics, increased competitors, current reduction in earnings, or an array of other factors. This is why it is very essential that you not depend entirely on a vendor's word, but rather, utilize the seller's solution together with your general due diligence. This will paint an extra practical image of the business's existing situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will need to consider this when valuating/preparing your deal. Numerous companies borrow money so as to cover things such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that in some cases this can indicate that earnings margins are too thin. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location bring in new customers? Often times, operating businesses have repeat clients, which create the core of their everyday earnings. Specific factors such as new competitors growing up around the location, road building and construction, and staff turn over can affect repeat customers and negatively influence future earnings. One important point to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business regularly, the greater the chance to develop a returning consumer base. A last idea is the general area demographics. Is the business placed in a densely populated city, or is it situated on the outskirts of town? How might the neighborhood typical home income influence future income prospects?