Listing ID: 81087
This is a very successful turn key business with tremendous growth opportunities! 2021 sales were up almost 25% with an absentee owner. A hands on owner should be able to largely increase sales and profits! This is a chance to own a very profitable store with the opportunity to expand to multiple locations.
Renegade Classics is the largest supplier of motorcycle apparel and accessories in Northern CA. They were established in 1991 and now have stores nationwide.
Renegade Classics is a registered trademark and has its own privately branded merchandise in addition to well known name brands. The corporate headquarters is located in Sacramento CA. The Modesto location has been owned by the CEO of Renegade Classics since it was established in 2003.
This is a great opportunity to step into an established, fun and profitable business!
Please do not discuss the sale of the business with the employees.
The information provided is compiled from information obtained from the Seller(s). The broker or agent makes no representation as to its accuracy or reliability. Buyer(s) should rely upon their own verification & that of their financial &/or legal advisors with regard to this information. We are not offering financial advice, financial assistance or do we endorse any loan or financial programs. We strongly suggest that you contact a finance, tax or legal professional regarding any of your financial and /or loan decisions.
- Asking Price: $295,000
- Cash Flow: N/A
- Gross Revenue: $589,500
- EBITDA: $123,000
- FF&E: $25,000
- Inventory: $178,000
- Inventory Included: Yes
- Established: 2003
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:4,800
- Lot Size:N/A
- Total Number of Employees:3
- Furniture, Fixtures and Equipment:N/A
The store is clean throughout and located in a perfect location surrounded by other motorcycle shops.
Training will be provided by Renegade Classics for up to 60 days in store and at corporate store.
Owner feels store would do much better with local owner
Renegade Classics offers a unique trademark line of clothing and accessories that can only be purchased through them as well as popular name brands.
This location is absentee run. A hands-on owner should see tremendous growth with local marketing and social media: Getting involved with local bike organizations, other Modesto businesses, sports teams, Chamber of Commerce, etc.
This Business Is An Established Franchise
The business was founded in 2003, making the business 19 years old.
The sale shall include inventory valued at $178,000, which is included in the requested price.
The company has 3 employees and resides in a building with estimated square footage of 4,800 sq ft.
The building is leased by the company for $4,232 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why people decide to sell businesses. Nonetheless, the real factor vs the one they say to you may be 2 totally different things. As an example, they might state "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may simply be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in earnings, or a variety of other factors. This is why it is very crucial that you not rely entirely on a seller's word, however instead, utilize the seller's response together with your total due diligence. This will paint an extra reasonable image of the business's present situation.
Existing Debts and Future Obligations
If the existing entity is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your offer. Many operating businesses borrow money with the purpose of covering things such as inventory, payroll, accounts payable, etc. Remember that occasionally this can indicate that profit margins are too thin. Lots of companies fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may additionally be future commitments to consider. There might be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that have to be satisfied or may lead to penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location bring in brand-new consumers? Often times, businesses have repeat clients, which create the core of their day-to-day revenues. Particular aspects such as new competition sprouting up around the area, roadway construction, as well as personnel turnover can influence repeat clients as well as negatively impact future profits. One vital thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the main road? Certainly, the more people that see the business regularly, the greater the chance to build a returning customer base. A final thought is the general location demographics. Is the business located in a densely inhabited city, or is it located on the outskirts of town? Just how might the regional median house income effect future earnings potential?