Listing ID: 80726
This is a great opportunity to pick up two successful auto repair franchise stores, located within the same city. Stores are priced at below start up cost and all the heavy lifting has been done, no headaches of hiring new employees or buying expensive new equipment. Franchisee has operated both stores for 14 years. The auto repair industry is said to be one of the recession-proof trades and these prove the point. This well recognized national franchise opportunity allows you to BE YOUR OWN BOSS, yet, have the support and buying power of a national corporation with over 900 other stores. Better buying power means higher margins over your independent competitors. This is a total car care facility where services include: transmissions, oil changes, tune-ups, brake repair and replacement, exhaust, steering/suspension services, tires and scheduled maintenance among others.
- Asking Price: $400,000
- Cash Flow: $146,396
- Gross Revenue: $1,450,581
- EBITDA: N/A
- FF&E: $75,000
- Inventory: $25,445
- Inventory Included: Yes
- Established: 2004
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:12
- Furniture, Fixtures and Equipment:N/A
Both shops are located on heavily traveled arterial streets in the largest city of one of the fastest growing states in the nation. Heavy traffic means more exposure to potential customers on a daily basis. Shops are approximately 2,826 sq. ft. each with 6 bays and a customer waiting area with restroom. Superior location is huge bonus to both these shops.
Will train for 2 weeks @ $0 cost. This business consists of two full service car care facilities. They provide preventative maintenance as well as expert, affordable repair. No prior experience required. Buyer must qualify with franchisor and will need to complete training at franchisor's corporate headquarters before franchise license can be transferred.
Owner is ready to retire and travel.
There are other car repair facilities in the city, but no direct competitors close by. Wide brand awareness gives these stores a distinct advantage. There are national and local ad campaigns in place to make sure these shops are top of mind. With the current price and difficulty of buying a new or used car, customers are driving their cars longer, which means more repair needs.
A new owner would have to focus on hiring more mechanics to ramp up revenue. This has been the Seller's biggest challenge, finding qualified personnel in order to keep up with demand.
This Business Is An Established Franchise
The venture was founded in 2004, making the business 18 years old.
The deal shall include inventory valued at $25,445, which is included in the asking price.
Why is the Current Owner Selling The Business?
There are all types of reasons individuals resolve to sell businesses. Nevertheless, the true factor vs the one they say to you might be 2 totally different things. For instance, they may say "I have a lot of other obligations" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may just be excuses to try to hide the reality of changing demographics, increased competitors, current decrease in profits, or a range of other reasons. This is why it is really essential that you not depend absolutely on a vendor's word, however instead, use the vendor's answer along with your total due diligence. This will repaint a more reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the current company is in debt, which many businesses are, then you will have reason to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover things like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can imply that revenue margins are too small. Numerous organisations come under a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may likewise be future commitments to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be satisfied or might result in charges if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do businesses in the location draw in brand-new customers? Most times, operating businesses have repeat clients, which form the core of their day-to-day profits. Specific aspects such as brand-new competition growing up around the area, road building, and employee turnover can influence repeat consumers and also adversely influence future profits. One important point to think about 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 people that see the business on a regular basis, the greater the opportunity to construct a returning customer base. A final idea is the general area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the regional median home earnings effect future income prospects?