Listing ID: 78748
Why buy a pizza store and work all day everyday, when you can own the whole company be the corporate office, collect the royalties and have franchisees run the stores.
• Franchise Corporation since 1980, about ten stores for sale or looking to exchange for equal value.
- 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: N/A
This Business Is An Established Franchise
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell businesses. Nonetheless, the real factor and the one they tell you might be 2 completely different things. For instance, they might state "I have too many various responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may just be justifications to try to conceal the reality of altering demographics, increased competitors, current decrease in profits, or a variety of other factors. This is why it is extremely vital that you not rely absolutely on a vendor's word, but rather, make use of the seller's response along with your total due diligence. This will paint a much more sensible picture of the business's present scenario.
Existing Debts and Future Obligations
If the current business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies borrow money with the purpose of covering things such as inventory, payroll, accounts payable, etc. Bear in mind that sometimes this can suggest that revenue margins are too small. Numerous businesses fall under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with suppliers that have to be satisfied or might cause penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the area draw in new clients? Often times, companies have repeat consumers, which create the core of their everyday earnings. Specific variables such as new competitors sprouting up around the location, roadway building and construction, and employee turnover can influence repeat clients and adversely affect future profits. One crucial thing to consider is the location of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the higher the possibility to build a returning client base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it located on the outside border of town? Exactly how might the local median household earnings effect future income prospects?