Business Overview

This is your opportunity to own a Grand Rapids location of a successful sub shop franchise. With over 300 shops across 15 states, this franchisor has a sound proof of concept and history for you to leverage.

The current owner has chosen to relocate to be closer to their multiple locations in another market. This move has triggered the sale of this single Grand Rapids (MI) location.

The Grand Rapids store has operated successfully for 10 years in a newer, fully leased strip mall. The shop, with 1900 square feet, occupies the end cap closest to the entrance off a major city street. There is ample parking at the door. The sub shop is located literally one minute from both a large suburban high school and an interchange on a major freeway. It doesn’t get any better than this.

Growing each year, the business had $570,000 in revenues in 2018, $620,000 in 2020, and a forecasted store record of $700,000 in 2021. And SDE (seller’s discretionary earnings – the cash flow available to pay the buyer and service debt) has kept pace with revenues. SDE has ranged from $113,000 in 2018 to $170,000 in 2020.

The franchisor has laser focus on food quality and franchisee support. In fact there is only a single company owned unit in the entire system. Fortunately for Praxis Business Brokers, the Grand Rapids store is conveniently located near our main office, and as such we frequently bring in subs for lunch meetings. I am pleased to report that we have always been delighted with our sub lunches.

The franchise fee for development of new stores is $25,000 with a lesser amount (which will generously be paid by the seller) for franchise resales. This shop is the only Grand Rapids location, and the seller and franchisor alike feel the Grand Rapids territory can easily handle several more stores which should appeal to a growth minded buyer.

Despite the lack of instore dining for the past year (+), the shop, aided by embracing Grub Hub as a third-party delivery service, has continued its record revenue levels. With restrictions lifting, the shop is returning to its historical seating for 54 diners. The store’s location is in a vibrant commercial area with nearby middle class housing developments, both of which bode well for future revenue streams.

The business is being offered for $424,000 which represents a 2.95x SDE and includes (a) all fixed assets ($145,000 on a cost basis), (b) approximately $10,000 of inventory, (c) the franchise transfer fee, (d) comprehensive training by the franchisor, (e) store specific training by the seller, and (f) a mid-five figure seller note.

To learn more about this attractive, cash-flowing sub shop, please contact Ryan Johnson (


  • Asking Price: $424,000
  • Cash Flow: $144,000
  • Gross Revenue: $630,000
  • FF&E: $145,000
  • Inventory: $10,000
  • Inventory Included: Yes
  • Established: 2011

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:

A 1900 square foot restaurant located in a strip mall on the end cap closest to the entrance off a major city street.

Is Support & Training Included:

Comprehensive training by the franchisor and store specific training by the seller.

Purpose For Selling:


Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was established in 2011, making the business 11 years old.
The transaction will include inventory valued at $10,000, which is included in the requested price.

Why is the Current Owner Selling The Business?

There are all kinds of reasons people resolve to sell companies. Nonetheless, the genuine reason and the one they say to you may be 2 completely different things. As an example, they may say "I have too many various commitments" or "I am retiring". For lots of sellers, these factors are valid. But, for some, these may just be justifications to try to conceal the reality of transforming demographics, increased competitors, current reduction in profits, or a range of various other factors. This is why it is extremely important that you not depend completely on a seller's word, but instead, utilize the vendor's response together with your general due diligence. This will paint a much more sensible picture of the business's current circumstance.

Existing Debts and Future Obligations

If the existing company is in debt, which many companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Many operating businesses borrow money with the purpose of covering items like inventory, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too thin. Numerous companies come under a revolving door of taking loans as a way to pay back other loans. In addition to debts, there may likewise be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business may have existing contracts with vendors that should be fulfilled or may lead to charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do companies in the area draw in brand-new customers? Many times, operating businesses have repeat clients, which develop the core of their everyday revenues. Particular variables such as new competition sprouting up around the area, roadway building and construction, and personnel turnover can impact repeat customers and adversely affect future profits. One important point to consider is the area of the business. Is it in a very trafficked shopping center, or is it hidden from the highway? Clearly, the more people that see the business on a regular basis, the better the chance to build a returning client base. A final idea is the basic area demographics. Is the business placed in a largely inhabited city, or is it situated on the outside border of town? Just how might the neighborhood mean household earnings influence future income potential?