Listing ID: 82471
This established franchise childcare and learning provider in the Kansas City metro is licensed for 100+ children. All children are private-pay (no state aid children) and are 6 weeks to 6 years. Potential buyers need not have childcare or early education experience.
The center is strategically located for convenience and safety in an affluent community where many families have two working parents and the demand for quality care is high.
A team of well-trained employees combined with the solid systems, processes, polices and support of the franchisor should result in easy transition to a new owner.
Directors are in place but if a buyer has director experience they could choose to eliminate one director which would increase annual cash flow by about $35,000. This opportunity is not suitable for an absentee owner.
- Asking Price: $575,000
- Cash Flow: $186,369
- Gross Revenue: $1,520,827
- EBITDA: N/A
- FF&E: $200,000
- Inventory: N/A
- Inventory Included: N/A
- Established: N/A
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:8,000
- Lot Size:N/A
- Total Number of Employees:28
- Furniture, Fixtures and Equipment:N/A
This Business Is An Established Franchise
The business has 28 FT / 4 PT employees and resides in a building with approx. square footage of 8,000 sq ft.
The real estate is leased by the company for $17,498 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals choose to sell businesses. However, the genuine reason and the one they say to you may be 2 absolutely different things. For instance, they may state "I have a lot of various commitments" or "I am retiring". For numerous sellers, these factors stand. But, for some, these might simply be justifications to attempt to conceal the reality of changing demographics, increased competitors, recent reduction in earnings, or a range of various other factors. This is why it is really vital that you not depend totally on a seller's word, but rather, use the seller's answer combined with your total due diligence. This will repaint an extra reasonable picture of the business's existing situation.
Existing Debts and Future Obligations
If the current entity is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Numerous businesses borrow money in order to cover items like inventory, payroll, accounts payable, so on and so forth. Keep in mind that in some cases this can indicate that revenue margins are too tight. Many organisations fall under a revolving door of taking loans as a way to pay back various other loans. In addition to debts, there may also be future obligations to take into consideration. There may be an outstanding lease on equipment or the building where the business resides. The business may have existing agreements with suppliers that should be fulfilled or might result in penalties if canceled early.
Understanding the Customer Base, Competition and Area Demographics
How do companies in the location attract brand-new customers? Many times, companies have repeat clients, which create the core of their day-to-day revenues. Specific variables such as brand-new competition sprouting up around the area, roadway building, and also staff turn over can affect repeat consumers as well as adversely affect future incomes. One crucial thing to consider is the area of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Clearly, the more people that see the business often, the higher the possibility to develop a returning customer base. A final idea is the general location demographics. Is the business placed in a largely inhabited city, or is it situated on the outskirts of town? Exactly how might the regional mean household income impact future income prospects?