Listing ID: 82455
Business Overview
This franchise is AMAZING! It is an established, high-volume, two-location franchise operation in Kansas City and a surrounding market. The business generated $644,568 in cash flow in 2021.
The business has existing systems, procedures, employees, managers, customers, vendors, and ongoing franchisor support in place. The company has flourished during Covid with continued growth projected! The business leases two economical retail locations and has approximately 40 full and part-time employees. There are several opportunities for a buyer to take this business to the next level!
The ideal buyer will have restaurant operations experience. The sellers are ready to retire and pass the reins to a motivated buyer.
Financial
- Asking Price: $1,399,000
- Cash Flow: $644,568
- Gross Revenue: $2,821,000
- EBITDA: N/A
- FF&E: N/A
- Inventory: $12,500
- Inventory Included: Yes
- Established: N/A
Retirement
This Business Is An Established Franchise
Additional Info
The transaction will include inventory valued at $12,500, which is included in the suggested price.
The building is leased by the business for $0.00
Why is the Current Owner Selling The Business?
There are all kinds of reasons why people decide to sell companies. However, the genuine reason and the one they say to you may be 2 totally different things. As an example, they might claim "I have too many various commitments" or "I am retiring". For numerous sellers, these factors are valid. But also, for some, these may simply be justifications to try to hide the reality of altering demographics, increased competition, recent reduction in earnings, or a variety of various other reasons. This is why it is very crucial that you not rely absolutely on a seller's word, yet instead, make use of the seller's solution in conjunction with your total due diligence. This will paint a much more realistic image of the business's existing situation.
Existing Debts and Future Obligations
If the existing company is in debt, which lots of companies are, then you will have reason to consider this when valuating/preparing your deal. Lots of businesses take out loans so as to cover things like supplies, payroll, accounts payable, etc. Keep in mind that sometimes this can mean that profit margins are too small. Lots of organisations come under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may additionally be future obligations to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that must be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract new consumers? Often times, companies have repeat clients, which develop the core of their day-to-day revenues. Certain elements such as new competition growing up around the area, roadway construction, as well as personnel turn over can influence repeat customers and also adversely impact future incomes. One crucial point to consider is the location of the business. Is it in a very trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business on a regular basis, the better the possibility to build a returning client base. A final idea is the general location demographics. Is the business located in a largely populated city, or is it situated on the outside border of town? Just how might the local typical home income effect future income potential?
