Business Overview

Since 1981, this Franchise has become known for its amazing selection of gourmet chocolates, caramel apples, and fudge – many made right in the store in one of their famous candy-making demonstrations.

“Premium chocolates are expected to continue to be a major factor in sector growth, particularly in emerging economies. With premium chocolates carrying higher profit margins, manufacturers are already working to meet market demand from consumers who are influenced by price, packaging, ingredients, exclusivity and provenance, according to Technavio.” – Technavio Global Chocolate Market Report 2019-2023

The owner is offering a unique package including two (2) shops located in busy, well-established malls with experienced management in place overseeing both shops. One shop opened in 1994, and the second in 2009 by the previous owner. The current owner purchased each, respectively in 2018 and 2020. One of the locations has exclusivity for selling in the mall two products: Candied Apples and Hard Ice Cream. Reluctantly, the reason for selling is that he is purchasing another business located out of the state.
When the current owner was asked, “What suggestions do you have for a new owner to increase his income?” The current owner replied with these ideas:

“Take a hands-on approach by working 30-40 hours per week instead of my ‘semi-absentee’ schedule of only 10-15 hrs. per month. By doing so, you would eliminate the General Manager (GM) position paying $19.50/hr.. The GM and an Assistant General Manager (AGM) oversee both locations and are required because I have relocated out-of-state. There is currently an Assistant Manager (AGM) position paying $18.50/hr.. I suggest keeping the AGM position because they would be helpful in case the new owner was absent for medical or family emergencies, or taking time off for vacations and during the holidays (Christmas, Valentines, etc.).
Also, the AGM hours could be reduced with the owner doing some of their duties.

Other reduced expenses that would result in more money into the owners pocket are: reduced payroll taxes, IRA contributions, fewer bonuses, gas allowance and similar fringe benefits. Eliminating the GM would add approximately $20K to my bottom line last year (2021). And reducing the AGM’s wages may have added another $5K to my income.”

ADDITIONAL DETAILS:

> Premises are 525 sq. ft. and 1,733 sq. ft. (approx.)

> Monthly rents are respectively $3,474 and $4,627

PRICE INCLUDES: Furniture, fixtures and equipment, training period, leasehold interest, leasehold improvements, and goodwill. some personal items may be excluded from the sale. Inventory is not included in the sale and is available for Buyer(s)to purchase at wholesale cost.

DISCLAIMER: The information provided here is compiled from the information obtained from the Seller. The Broker makes no representation as to its accuracy or reliability. Buyer(s) should rely upon their own verification and that of their financial and /or legal advisers with regard to this information.

Financial

  • Asking Price: $595,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1994

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:10
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Both locations are in well-established, high-trafficked malls.

Is Support & Training Included:

Complete training with a Franchise Team, supported by the Owner.

Purpose For Selling:

Purchasing another business out-of-state.

Pros and Cons:

The largest chocolate store in the Nation. They were rated the number one candy franchise by Entrepreneur's "Franchise 500" several years in a row!

Opportunities and Growth:

Both locations can expand product lines for growth potential.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was founded in 1994, making the business 28 years old.

The company has 10 employees and resides in a building with estimated square footage of N/A sq ft.
The real estate is leased by the company for $0.00

Why is the Current Owner Selling The Business?

There are all types of reasons individuals decide to sell businesses. However, the true factor and the one they say to you might be 2 completely different things. For instance, they may state "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. However, for some, these might just be excuses to try to hide the reality of changing demographics, increased competition, current reduction in revenues, or an array of other factors. This is why it is extremely crucial that you not rely absolutely on a seller's word, yet instead, use the vendor's solution together with your general due diligence. This will paint a more realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current entity is in debt, which many businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses take out loans in order to cover points such as inventory, payroll, accounts payable, and so on. Remember that occasionally this can indicate that revenue margins are too tight. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may likewise be future commitments to think about. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that must be met or may lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area bring in brand-new clients? Many times, businesses have repeat clients, which form the core of their day-to-day revenues. Specific aspects such as brand-new competition sprouting up around the area, road building, and staff turnover can influence repeat consumers and also negatively affect future earnings. One vital thing to consider is the placement 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 often, the better the chance to develop a returning consumer base. A last thought is the general area demographics. Is the business situated in a densely populated city, or is it located on the edge of town? How might the local median house earnings impact future income prospects?