Listing ID: 76994
Absentee owner premium plant based juice bar. Strong brand with more than 150 locations. Turn-key Franchise, Seller is mostly absentee (working about 5 hours per week) with manager & shift leads in place. 2019 SDE was $91k and 2020 SDE was $83k. Closed for 8 weeks due to COVID in 2020. If the business was open for the whole year the SDE would have been $101k. The business does really well in COVID. P&Ls and tax returns available. According to the Seller, Buyer could replace manager as an owner operator and further increase profits. The Seller is relocating and looking for a highly qualified Buyer to take the business to the next level. This business will sell quickly! For additional information, please contact Listing Agent Amit Wadhera (909) 319-9795
- Asking Price: $425,000
- Cash Flow: $91,286
- Gross Revenue: $595,201
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: 2016
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:13
- Furniture, Fixtures and Equipment:N/A
Open M-F 7-8, Sat-Sun 8-8
This Business Is An Established Franchise
The venture was established in 2016, making the business 6 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons individuals choose to sell businesses. Nevertheless, the genuine factor vs the one they tell you may be 2 totally different things. As an example, they might claim "I have too many other responsibilities" or "I am retiring". For many sellers, these factors are valid. But also, for some, these might just be justifications to attempt to conceal the reality of transforming demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is really vital that you not rely entirely on a seller's word, but rather, make use of the seller's response in conjunction with your overall due diligence. This will paint a much more sensible image of the business's current circumstance.
Existing Debts and Future Obligations
If the current company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your offer. Lots of businesses finance loans with the purpose of covering things such as stock, payroll, accounts payable, etc. Keep in mind that in some cases this can imply that profit margins are too small. Lots of organisations fall under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may additionally be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business may have existing contracts with vendors that have to be met or might lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new customers? Often times, operating businesses have repeat consumers, which form the core of their daily earnings. Specific factors such as new competition sprouting up around the area, road building and construction, as well as staff turnover can influence repeat consumers and negatively affect future revenues. One vital point to take into consideration is the location of the business. Is it in an extremely trafficked shopping center, or is it hidden from the highway? Undoubtedly, the more individuals that see the business on a regular basis, the greater the opportunity to construct a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it located on the edge of town? How might the neighborhood typical family earnings effect future earnings prospects?