Listing ID: 74954
Incredible opportunity to buy a successful franchise pizza location in one of the fastest growing suburbs of Phoenix. This take out and delivery restaurant in the East Valley is in a prime location on a major North/South artery surrounded by new upscale housing developments. The current owner bought this business in 2019 and it was distressed due to an inactive owner and he has turned it around and grown annual sales by almost $300,000 over the past 3 years. All the equipment is very well maintained. The seller is very active in the business but also has two college age assistant managers and 10 other part time employees. This is a turn-key opportunity for an experienced operator that can replace the owner and continue the growth trend. Perfect setup for a family business. This is higher-end Chicago style pizza with fresh ingredients and proprietary sauces, dough, cheese, etc. Well-known Franchisor, has over 25 locations in the valley, and charges very reasonable royalty and marketing fees. Good on-site training program for new franchisees as well as marketing support and proprietary POS system. The seller is open to doing some seller financing for qualified buyers with at least 60% down payment. SERIOUS BUYERS ONLY PLEASE.. All inquiring parties will be required to complete a confidentiality agreement before receiving any additional information. Note: In addition to the sales price there is a $15,000 franchise transfer fee.
- Asking Price: $235,000
- Cash Flow: $105,000
- Gross Revenue: $710,000
- EBITDA: $105,000
- FF&E: $50,000
- Inventory: $2,500
- Inventory Included: N/A
- Established: 2009
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,800
- Lot Size:N/A
- Total Number of Employees:1
- Furniture, Fixtures and Equipment:N/A
2 week training period
Other business opportunities
This Business Is An Established Franchise
The company was founded in 2009, making the business 13 years old.
The deal won't include inventory valued at $2,500*, which ins't included in the requested price.
The business has 1 FT/ 12 PT employees and is situated in a building with approx. square footage of 1,800 sq ft.
The building is leased by the business for $4,712.15 per Month
Why is the Current Owner Selling The Business?
There are all sorts of reasons people resolve to sell operating businesses. Nevertheless, the real reason vs the one they tell you might be 2 absolutely different things. As an example, they may claim "I have a lot of other commitments" or "I am retiring". For numerous sellers, these reasons stand. However, for some, these might just be reasons to attempt to conceal the reality of transforming demographics, increased competition, current decrease in incomes, or an array of various other reasons. This is why it is really vital that you not depend absolutely on a vendor's word, yet rather, utilize the vendor's answer together with your total due diligence. This will paint a more sensible image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing entity is in debt, which numerous businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans in order to cover points such as supplies, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can imply that profit margins are too thin. Many businesses come under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that need to be met or might lead to fines if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do operating businesses in the area bring in new clients? Most times, businesses have repeat customers, which develop the core of their daily earnings. Specific variables such as new competition sprouting up around the location, road building and construction, as well as employee turnover can impact repeat customers and negatively affect future earnings. One crucial thing to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Clearly, the more individuals that see the business on a regular basis, the higher the opportunity to develop a returning client base. A final idea is the general location demographics. Is the business situated in a largely populated city, or is it situated on the outskirts of town? Exactly how might the regional average household income influence future earnings prospects?