Business Overview

Unique and rare opportunity to purchase an established franchisee operating profitably in Massachusetts and Rhode Island for 38 years. The business started with one license and has expanded to 12 licenses, which gives the business a few exclusive areas in MA and RI. The cost of acquiring 12 licenses alone from the franchisor could be around $221,500, hence making the purchase price of $295,000 very attractive when considering that for this price a buyer will get the 12 licenses, operating equipment, 6 vehicles, turnkey operations, thousands of customers, well-developed referral business, repeat business from existing customers, tremendous goodwill, excellent reputation established over 38 years, long-term stable employees, strong web presence, and an annual cashflow of $178,628.

The franchisor is the nation’s largest carpet cleaning franchise with nearly 3,500 franchisees using the company’s patented products around the globe for over 40 years. It has 7% market share and is the leader in the Carpet Cleaning industry. It’s unique and patented process gives it an edge in the industry, and also the seal of approval from the Carpet and Rug Institute.

The company has 2 customized websites – one each for Massachusetts and Rhode Island; 2 customized Facebook pages with numerous positive reviews. They also boast of 245 Google reviews with 4.9 rating in Massachusetts, and an additional 30reviews with 4.8 rating in Rhode Island. They are recognized as Top Rated Professional by HomeAdvisor and Top Pro by Thumbtack. In addition, the company won Angie’s List Super Service Awards in 2011, 2012, and 2018. They’ve also won numerous awards given by the franchisor, including Franchisee of the Year in 2017.

Financial

  • Asking Price: $295,000
  • Cash Flow: $178,628
  • Gross Revenue: $786,752
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: $8,500
  • Inventory Included: N/A
  • Established: 1983

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:3,000
  • Lot Size:N/A
  • Total Number of Employees:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Please ask Broker for Confidential Business Package.

Is Support & Training Included:

The franchisor offers a 1-week program of high-impact, hands-on, classroom style learning. Everything is covered from customer acquisition to marketing to carpet cleaning theory. Franchisor also provides ongoing support. You will be assigned a QuickStart team to help you hit the ground running. Annual conventions, training events and retreats will keep you in touch with the franchisee family. Continued support is offered by an assigned business coach, marketing team and numerous other departments at the home office. Further, to ensure the optimal transition, Seller shall provide operations, marketing and business management support at no additional cost to the Buyer for a period of 2 weeks up to 40 hours per week.

Purpose For Selling:

Relocation due to personal issues

Pros and Cons:

Please ask Broker for Confidential Business Package.

Opportunities and Growth:

Please ask Broker for Confidential Business Package.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was started in 1983, making the business 39 years old.
The sale doesn't include inventory valued at $8,500*, which ins't included in the listing price.

The business has 5 employees and is located in a building with approx. square footage of 3,000 sq ft.
The property is leased by the business for $2,500 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 absolutely different things. For instance, they may say "I have way too many other responsibilities" or "I am retiring". For lots of sellers, these reasons stand. But, for some, these might just be excuses to try to conceal the reality of altering demographics, increased competition, current reduction in earnings, or an array of various other factors. This is why it is really essential that you not rely entirely on a seller's word, yet instead, utilize the seller's response combined with your general due diligence. This will paint an extra realistic image of the business's existing situation.

Existing Debts and Future Obligations

If the current company is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses borrow money so as to cover items such as supplies, payroll, accounts payable, etc. Remember that sometimes this can imply that revenue margins are too thin. Numerous businesses fall under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that have to be met or may cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the location draw in brand-new customers? Most times, companies have repeat clients, which develop the core of their daily profits. Particular elements such as new competitors sprouting up around the location, road building and construction, and also employee turnover can influence repeat consumers and adversely affect future profits. One crucial point to take into consideration is the location of the business. Is it in a highly trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more people that see the business regularly, the higher the chance to develop a returning client base. A final thought is the general location demographics. Is the business situated in a densely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood average house earnings influence future earnings prospects?