Listing ID: 73148
This fast food franchise has been in business for over 10 years, has >25% profit margin, and annual sales of over $1 million. Excellently located in a busy shopping center area, with frontage view to one of the busiest roads in the city recorded at over 21k daily traffic. This 1500 SF building has a drive through and has been maintained very well, with the most recent upgrade having just taken place last year. Could be easily managed on a semi-absentee model.
– Fully staffed
– Simple operation
– Franchise support
– Low COGS
– Can be semi-absentee
– Excellent location
This is a rare opportunity that won’t last long, act today!
- Asking Price: $1,200,000
- Cash Flow: $452,350
- Gross Revenue: $1,271,478
- EBITDA: N/A
- FF&E: N/A
- Inventory: $2,000
- Inventory Included: N/A
- Established: 2011
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:13
- Furniture, Fixtures and Equipment:N/A
moving out of state
This Business Is An Established Franchise
The venture was started in 2011, making the business 11 years old.
The deal shall not include inventory valued at $2,000*, which ins't included in the asking price.
The business has 13 employees and resides in a building with approx. square footage of 1,500 sq ft.
The property is leased by the company for $4,700 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals choose to sell companies. Nevertheless, the true reason and the one they tell you might be 2 entirely different things. As an example, they may say "I have too many other commitments" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be excuses to try to hide the reality of altering demographics, increased competition, current reduction in earnings, or a variety of various other factors. This is why it is very important that you not depend absolutely on a seller's word, yet rather, utilize the vendor's response together with your overall due diligence. This will repaint a much more reasonable picture of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Remember that occasionally this can suggest that profit margins are too thin. Lots of companies fall under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business may have existing agreements with suppliers that have to be met or may result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in brand-new clients? Most times, operating businesses have repeat customers, which develop the core of their daily profits. Certain aspects such as new competitors sprouting up around the location, roadway building, and also employee turn over can affect repeat customers and negatively impact future profits. One essential point to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Obviously, the more people that see the business regularly, the higher the opportunity to build a returning customer base. A last idea is the general area demographics. Is the business located in a densely populated city, or is it situated on the edge of town? How might the regional typical household earnings influence future revenue potential?