Business Overview

This is a Tutoring Math Education franchise business. This business is catered towards elementary schools, middle schools, and high school kids in need of improving math grades or to excel in math. Tutoring is in person or can be virtual, many of the students are repeat students year after year. The business is located in a St Paul suburb. The company was established 2012 with the current for 10 years. The business hours are Monday – Thursday 2 pm to 7 pm, Sunday 4 pm to 7 pm.

Financial

  • Asking Price: $225,000
  • Cash Flow: $75,000
  • Gross Revenue: $335,000
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: Yes
  • Established: 2012

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:14
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The business operates in 1,650 square feet with gross monthly rent of $2,532. The space consists of a spacious classroom and a couple offices used by the owner and staff. The lease expires on December 31, 2022.

Purpose For Selling:

Retirement

Established Franchise:

This Business Is An Established Franchise

Additional Info

The venture was established in 2012, making the business 10 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why individuals choose to sell companies. However, the real factor vs the one they say to you might be 2 completely different things. For instance, they may state "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons stand. But, for some, these may just be justifications to attempt to hide the reality of changing demographics, increased competition, recent reduction in earnings, or a range of various other reasons. This is why it is extremely important that you not count totally on a vendor's word, but instead, utilize the seller's response together with your total due diligence. This will paint a much more reasonable picture of the business's existing situation.

Existing Debts and Future Obligations

If the current entity is in debt, which many companies are, then you will have reason to consider this when valuating/preparing your deal. Many companies take out loans with the purpose of covering points like supplies, payroll, accounts payable, and so on. Bear in mind that sometimes this can suggest that profit margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that must be satisfied or might lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do businesses in the area attract new consumers? Many times, companies have repeat customers, which create the core of their daily profits. Specific elements such as brand-new competition sprouting up around the location, road building, and personnel turnover can influence repeat consumers and adversely influence future revenues. One crucial thing to think about is the placement of the business. Is it in a highly trafficked shopping center, or is it concealed from the main road? Clearly, the more individuals that see the business regularly, the greater the opportunity to build a returning consumer base. A final thought is the basic location demographics. Is the business located in a largely populated city, or is it situated on the edge of town? Just how might the regional mean household earnings influence future revenue prospects?