Business Overview:
This is a C-store housed in a retail space of about 2,000 square feet, free standing building along with a gas station with Islands on a high traffic suburban road. This is a 24-hour a day operation. The store’s sales from merchandise were about $776,000 in 2006, its commission from the sales of Lottery about $28,000 and its commission from the sales of Gasoline is $4,000. In 2007 the pro-forma estimate of the merchandise sales is expected to be about $850,000. The cash flow to an owner/operator is estimated to be about $75,000 to $85,000. WAY FRANCHISE WORKS: Franchiser and Owner split the Gross Margin from the business (sales less cost of goods sold.) Then the business expenses are paid as follows: Franchiser pays rent, 75% of utilities, and a large part of maintenance expenses (Seller will elaborate on this.) Franchiser also owns all the equipment needed for running the business. The business owner pays payroll, telephone, laundry, Business and License Taxes, bad merchandise and store supplies (note: the Seller may need to revise slightly this list to make it more accurate.) INVENTORY: The franchiser is financing the largest part of the inventory. However, the business owner is free to choose Current owner who has owned the business for about 8 years and has been running it on a semi-absentee basis has managed to average a Gross Margin of about 25%. The prior owner did about 30% Gross Margin. ASKING PRICE: $69,000 to Seller (non-negotiable since the business is priced to sell quickly) PLUS the buyer has to pay the sum of $37,000 for Franchise Fee (about $17,000) and a small part of inventory (about $35,000). Therefore the total cash required for purchasing the business is $106,000 . Required Steps for Purchasing this Business: Interested parties will have to (a) sign a Confidentiality Agreement and Supply a Buyer Profile to Enterprise Dev. Res. Inc, (b) Visit the store and interview with the Seller, ( c) If interested, supply a Letter a Intent to the Seller, (d) Submit an Application to the Franchisor, (e) Have an interview in Cleveland and one out of town. (f) A final interview out of town when they will supply their business plan on how to run the business. Then there will be a need for 6 to 8 weeks of training with the Franchiser and on-site.
For more information regarding this listing please contact us by completing the "Contact the Seller" form to the left. We look forward to hearing from you.
Property Features and Assets:
About 2,000 sq. feet of store space in a free standing building. Gas Station section has 2 pumps.
Market Competition and Expansion:
New owner may manage the product mix differently and thus increase potentially the Gross Margin. The possibility exists (nobody knows how likely it is) that the Franchiser may abandon the territory.
Reason for Selling:
Seller wants to go into other business after 8 yrs.
Additional Details:
- The property is leased.
- The owner may be willing to train/assist the new owner.
- This may become a homebased business opportunity.
- This may become a franchise resale opportunity.
- This is not a distressed business or bankruptcy situation.