Listing ID: 82433
This franchised Missouri & Johnson County KS territory opportunity represents a well-established business model with solid revenues and cash flow. Typical customers are hotels, motels commercial landlords and residential. Owner is ready to retire and will offer extensive training to the buyer.
Ranked in the top 50 franchises by Franchise Business Review (FBR) and in the top 100 available low cost franchises by FBR their proprietary products methods innovations and proven strategies have separated them from all others. Nationwide franchise sales of over $72M projected for 2020.
- Asking Price: $725,000
- Cash Flow: $231,850
- Gross Revenue: $862,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:Own
- Property Included:N/A
- Building Square Footage:1,500
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
This Business Is An Established Franchise
Why is the Current Owner Selling The Business?
There are all types of reasons individuals choose to sell companies. Nonetheless, the real reason vs the one they tell you might be 2 absolutely different things. As an example, they may say "I have a lot of other commitments" or "I am retiring". For lots of sellers, these factors are valid. But also, for some, these may simply be excuses to attempt to conceal the reality of changing demographics, increased competition, recent reduction in earnings, or a variety of other factors. This is why it is really crucial that you not depend totally on a seller's word, however rather, utilize the seller's response along with your general due diligence. This will paint a more realistic image of the business's present circumstance.
Existing Debts and Future Obligations
If the existing business is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans with the purpose of covering items like supplies, payroll, accounts payable, etc. Bear in mind that sometimes this can indicate that profit margins are too small. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future obligations to think about. There may be an outstanding lease on tools or the structure where the business resides. The business may have existing contracts with vendors that need to be satisfied or may lead to penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the location attract new customers? Many times, companies have repeat consumers, which create the core of their day-to-day earnings. Certain elements such as brand-new competition growing up around the area, road building and construction, and employee turnover can affect repeat consumers as well as negatively affect future profits. One crucial thing to consider is the area of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Clearly, the more individuals that see the business often, the greater the opportunity to develop a returning consumer base. A final thought is the basic area demographics. Is the business situated in a densely populated city, or is it situated on the edge of town? Exactly how might the local average home income impact future income potential?