Listing ID: 76974
Great brand recognition and a loyal following. Seller is Semi-absentee with a trained staff. Low rent and verifiable books and records. Store has been well maintained. Adjusted net profit of $69,647 is with an Full time owner operator reducing payroll by $30k. For more information, please contact Listing Agent Amit Wadhera at 909-319-9795
- Asking Price: $89,000
- Cash Flow: $69,647
- Gross Revenue: $348,764
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,260
- Lot Size:N/A
- Total Number of Employees:8
- Furniture, Fixtures and Equipment:N/A
This Business Is An Established Franchise
The company was founded in 2007, making the business 15 years old.
The company has 8 employees and is located in a building with approx. square footage of 1,260 sq ft.
The building is leased by the company for $3,590 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people choose to sell businesses. Nonetheless, the true factor and the one they tell you may be 2 absolutely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be reasons to attempt to hide the reality of transforming demographics, increased competitors, current decrease in earnings, or an array of other factors. This is why it is really crucial that you not count totally on a seller's word, yet instead, use the vendor's response together with your overall due diligence. This will paint a much more realistic picture of the business's current scenario.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your deal. Many operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that earnings margins are too small. Many companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may additionally be future commitments to think about. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing agreements with suppliers that must be satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Just how do operating businesses in the location bring in brand-new clients? Most times, companies have repeat customers, which develop the core of their daily earnings. Specific elements such as new competition growing up around the location, road construction, as well as staff turn over can impact repeat clients and negatively affect future earnings. One important point to think about is the location of the business. Is it in a very trafficked shopping mall, or is it hidden from the highway? Undoubtedly, the more individuals that see the business often, the higher the chance to develop a returning customer base. A last idea is the basic area demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? Just how might the local average home earnings effect future revenue potential?