Listing ID: 82441
Business Overview
This fantastic college town franchise offers absolutely DELICIOUS food that keeps customers coming back for more and more and more! The business is on a strong growth trajectory grossing over $1.2m in sales with $204,799 in cash flow in 2021. Not to mention … the operation flourished during Covid!
The business has existing systems, procedures, employees, managers, customers, vendors, and ongoing franchisor support in place. The restaurant is perfectly located in a high-traffic location in Lawrence, Kansas.
The ideal buyer for the franchise would be an owner-operator that would run the day-to-day operation. The owner has been commuting from out of state to run the business and is looking to sell the Lawrence location to focus on another franchise they own near their home.
Financial
- Asking Price: $449,000
- Cash Flow: $204,799
- Gross Revenue: $1,276,739
- EBITDA: N/A
- FF&E: N/A
- Inventory: $7,000
- Inventory Included: Yes
- Established: N/A
Other business interests
This Business Is An Established Franchise
Additional Info
The transaction does include inventory valued at $7,000, which is included in the suggested price.
The real estate is leased by the business for $2,950 per Month
Why is the Current Owner Selling The Business?
There are all types of reasons why individuals decide to sell operating businesses. Nevertheless, the real factor vs the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of various commitments" or "I am retiring". For many sellers, these reasons are valid. But also, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competition, recent decrease in revenues, or a range of other factors. This is why it is extremely important that you not count completely on a vendor's word, however instead, use the seller's response along with your overall due diligence. This will repaint a more practical image of the business's present scenario.
Existing Debts and Future Obligations
If the existing entity is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many companies finance loans so as to cover points like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can imply that earnings margins are too tight. Many companies come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with vendors that should be met or may cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in new customers? Often times, operating businesses have repeat customers, which form the core of their daily revenues. Specific elements such as brand-new competitors sprouting up around the location, roadway building, and also staff turnover can influence repeat consumers and adversely influence future incomes. One important point to think about is the location of the business. Is it in a highly trafficked shopping mall, or is it hidden from the highway? Obviously, the more individuals that see the business on a regular basis, the greater the chance to construct a returning customer base. A final thought is the general area demographics. Is the business placed in a densely populated city, or is it situated on the edge of town? Just how might the local average family earnings impact future income prospects?
