Listing ID: 83026
Principle Business Advisors presents this established quick-service franchise located in Auburn, Alabama. This Pita Pit offers counter-service, online ordering, delivery, and catering services. Pita Pit awards itself for its customizable, healthy menu that fits many lifestyles!
This franchise is available for sale because the owners are looking to retire. The business is currently run absentee with a full-time general manager (GM). Financials listed in the ad are recast 2019 financials with an owner-operator. If the new owner would like to keep the GM and own the business absentee the net profit should be reduced by the GM salary. The store was closed for 5 1/2 months in 2020 with the business resuming normal hours in December.
This is an opportunity to buy a very profitable, well-known, national franchise for “pennies-on-the-dollar”. A Pita Pit franchise typically starts around $216,000. The franchisor has offered to waive the franchise transfer fees of $7,000 in order to expedite the sale process.
Contact the listing broker Joel Duran, CMSBB at (504) 313-1038 for more information.
**The employees do not know this business is for sale. ALL INQUIRIES MUST BE SUBMITTED through the listing broker.
- Asking Price: $45,000
- Cash Flow: $68,221
- Gross Revenue: $339,806
- EBITDA: N/A
- FF&E: $150,000
- Inventory: $4,000
- Inventory Included: Yes
- Established: 2007
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:1,335
- Lot Size:N/A
- Total Number of Employees:N/A
- Furniture, Fixtures and Equipment:N/A
The current franchisee has made arrangements with the Franchise that a new owner can take over without having to make any updates to the store.
The franchise will train the buyer on how to own and operate this business.
This is an excellent growing college market with many opportunities for late-night business.
This store has always been absentee owned and the current owner believes sales could be immediately improved with an owner-operator. The numbers shown above are conservatively recast for an owner-operated store. Business hours could easily be expanded with the right owner.
This Business Is An Established Franchise
The company was established in 2007, making the business 15 years old.
The transaction will include inventory valued at $4,000, which is included in the suggested price.
The business has FT:2 PT:7 employees and is located in a building with approx. square footage of 1,335 sq ft.
The property is leased by the company for $2,500 per Month
Why is the Current Owner Selling The Business?
There are all kinds of reasons why individuals decide to sell businesses. However, the genuine reason vs the one they say to you may be 2 entirely different things. As an example, they might say "I have way too many other commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be excuses to try to conceal the reality of changing demographics, increased competition, recent reduction in profits, or an array of various other reasons. This is why it is really important that you not depend absolutely on a seller's word, but rather, make use of the seller's response along with your overall due diligence. This will repaint a more sensible picture of the business's current scenario.
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 operating businesses take out loans with the purpose of covering things like supplies, payroll, accounts payable, so on and so forth. Remember that in some cases this can indicate that revenue margins are too thin. Lots of organisations 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 commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing agreements with vendors that need to be fulfilled or might cause penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Just how do companies in the area attract brand-new customers? Many times, operating businesses have repeat customers, which create the core of their day-to-day revenues. Particular factors such as new competition sprouting up around the area, road construction, and staff turn over can affect repeat consumers as well as adversely influence future earnings. One essential thing to take into consideration is the area of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Certainly, the more people that see the business regularly, the higher the chance to build a returning customer base. A last idea is the general area demographics. Is the business located in a densely inhabited city, or is it situated on the edge of town? Just how might the neighborhood average house earnings influence future income prospects?