Listing ID: 73206
Stellar performance of $775k sales revenue in 2021. This turnkey operation is ready for a new owner to turn it into a $1 million revenue store. Major road construction affected the entire area for past couple of years but it has now been completed and traffic is expected to grow steadily in 2022. Located in large shopping area near major entertainment center. Ample parking available.
The asking price is less than 1.5x its cash flow to owner, making it a real bargain that will not last long. This is a seasoned establishment with consistently strong revenues, an ideal scenario for semi-absentee ownership.
This successful brand-name apparel store serves a loyal customer base of teens and young adults, providing them with quality and affordable shopping choices for gently-used apparel, shoes and accessories. Located in a college town with thousands of students that are both fashion and budget conscious, the store provides a unique shopping experience at 50-70% off regular retail pricing, while also being the perfect venue for teens and young adults to bring in their own clothes and turn them into cash. All under one roof.
The tide of rising disposable income and consumer confidence places the fashion retail resale industry in great position against large box retailers offering generic substitutes, and this trend is expected to grow in the coming years. At the heart of this store’s success is 1. appeal across income levels, 2. rise of ‘green’ consumerism, 3. high demand for like-new products.
- Asking Price: $150,000
- Cash Flow: $108,851
- Gross Revenue: $774,361
- EBITDA: N/A
- FF&E: $138,803
- Inventory: N/A
- Inventory Included: N/A
- Established: 2015
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,100
- Lot Size:N/A
- Total Number of Employees:14
- Furniture, Fixtures and Equipment:N/A
Located in large shopping area near major entertainment center. Ample parking available.
Franchisor provides extensive training.
Limited competition in the geographical area catering to fashion-conscious demographics living on a budget.
This Business Is An Established Franchise
The company was started in 2015, making the business 7 years old.
The company has 14 employees and resides in a building with approx. square footage of 4,100 sq ft.
The property is leased by the business for $5,125 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. However, the true reason and the one they tell you may be 2 totally different things. As an example, they might state "I have too many other commitments" or "I am retiring". For many sellers, these factors are valid. However, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competition, recent decrease in profits, or a variety of other factors. This is why it is really important that you not count completely on a seller's word, however instead, utilize the seller's response along with your overall due diligence. This will repaint a much more reasonable image of the business's current scenario.
Existing Debts and Future Obligations
If the current entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Numerous operating businesses finance loans in order to cover items like inventory, payroll, accounts payable, etc. Keep in mind that occasionally this can indicate that revenue margins are too small. 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 structure where the business resides. The business might have existing contracts with vendors that need to be met or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the area draw in new consumers? Many times, businesses have repeat clients, which create the core of their day-to-day revenues. Specific factors such as new competition growing up around the area, road building and construction, as well as employee turn over can influence repeat consumers as well as negatively influence future earnings. One crucial thing to take into consideration is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the better the chance to build a returning customer base. A last idea is the basic area demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the regional average family earnings impact future earnings potential?