Listing ID: 77335
A turn-key Fantastic Sams Cut and Color located in a prime location, including the required corporate upgrades, is available for sale. The business is located in a bustling shopping center with multiple anchor businesses and many other activity centers and restaurants nearby. The hair salon has been at this location for 30 years while the current owner has been operating it for the last 14 years. The owner is planning to retire.
The facility is about 1000 SF at $5,979 monthly lease and $590 monthly CAM. There is one 5-year option remaining that will start in the middle of 2022.
The business always generated revenue during 2020. It has been recovering toward the pre-Covid revenue of about $5,000 per week. Average weekly revenue in 2021 has been around $2,897 making the business slightly profitable YTD.
Third party financing options available for qualified buyers.
The following is a description of the Furniture, Fixture, Equipment, and personnel
• 2 FT (including the owner) and 3 PT hair stylists – all W2
• 9 chairs
• 3 shampoo chairs
• A full-color bar
• Fantastic Sams code wall paint
• Products display shelves
• An employee rest area
• A washroom
• A storage room
Please reach out to Matt Manavi at firstname.lastname@example.org or call at 714-923-1222 to discuss if this is the right business for you.
- Asking Price: $50,000
- Cash Flow: $60,000
- Gross Revenue: $259,000
- EBITDA: N/A
- FF&E: $12,000
- Inventory: N/A
- Inventory Included: N/A
- Established: 1991
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:5
- Furniture, Fixtures and Equipment:N/A
This Business Is An Established Franchise
The venture was started in 1991, making the business 31 years old.
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people resolve to sell operating businesses. Nevertheless, the genuine reason vs the one they say to you may be 2 entirely different things. As an example, they might state "I have way too many various obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these might simply be justifications to try to hide the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of other reasons. This is why it is really essential that you not count entirely on a seller's word, yet instead, use the vendor's response combined with your overall due diligence. This will repaint a much more sensible picture of the business's existing scenario.
Existing Debts and Future Obligations
If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your deal. Many businesses borrow money so as to cover items such as stock, payroll, accounts payable, and so on. Remember that occasionally this can suggest that earnings margins are too thin. Lots of businesses come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may result in charges if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in brand-new consumers? Most times, operating businesses have repeat clients, which form the core of their everyday profits. Specific elements such as brand-new competition sprouting up around the area, road construction, as well as staff turnover can influence repeat consumers as well as negatively influence future earnings. One important point to consider is the area of the business. Is it in a highly trafficked shopping mall, or is it concealed from the main road? Certainly, the more individuals that see the business on a regular basis, the better the chance to develop a returning client base. A last thought is the general location demographics. Is the business located in a densely inhabited city, or is it situated on the outside border of town? How might the neighborhood typical family income impact future earnings potential?