Business Overview

National fast food franchise brand. Location is highly visible from street and has low rent. Training and support will be provided by Franchisor. Currently absentee run and earns around $37k/Yearly. Adjusted net profit of $72k/Yr for an owner operator, reducing payroll by $35k. Asking price includes all small wares, furniture, fixtures, equipment, and tenant improvements. Call Listing Agent Amit Wadhera at 909-319-9795 for more information.

Financial

  • Asking Price: $120,000
  • Cash Flow: $71,812
  • Gross Revenue: $390,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2016

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,380
  • Lot Size:N/A
  • Total Number of Employees:7
  • Furniture, Fixtures and Equipment:N/A
Is Support & Training Included:

Franchisor Trains

Purpose For Selling:

Other business

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was started in 2016, making the business 6 years old.

The company has 7 employees and is situated in a building with approx. square footage of 1,380 sq ft.
The real estate is leased by the business for $2,155 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people choose to sell businesses. Nevertheless, the real reason vs the one they tell you may be 2 absolutely different things. For instance, they might claim "I have way too many various obligations" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these might just be excuses to try to hide the reality of transforming demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is extremely essential that you not depend entirely on a vendor's word, yet rather, make use of the seller's response combined with your total due diligence. This will paint a more practical picture of the business's existing situation.

Existing Debts and Future Obligations

If the current business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many companies take out loans in order to cover items such as supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can imply that profit margins are too thin. Lots of companies fall 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 commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with vendors that have to be satisfied or might cause fines if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new consumers? Most times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Specific factors such as brand-new competition growing up around the area, roadway building, and staff turnover can influence repeat consumers as well as negatively affect future earnings. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business on a regular basis, the greater the chance to develop a returning consumer base. A last thought is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the neighborhood median family earnings impact future earnings prospects?