Business Overview:
The store has a combined 14 years of goodwill. The royalty rate is grandfathered in at 4% compared to new PIAS franchises that pay 5%. Timing is great for negotiating a lease extension at the current location or re-locating. The existing generous franchise territory allows for opening additional locations and/or relocating. Advertising cooperation among San Diego franchisees is another advantage. Buying an existing location gives the buyer immediate and predictable cash flow and provides all the equipment, merchandise, signage, customer traffic, customer database and experienced staff to operate in America's 8th largest city. The buyer would be in the best position to buy the seller's other prime location in the beach community of Pacific Beach, when he eventually sells it. You may ask yourself, "Why pay royalties to a franchiser?" as the seller did when he bought the territory in 1991. Though an expert in the retail business, he benefited from the franchise in multiple ways: A network of other franchisees who share their successes and failures; twice yearly conferences with workshops and franchisee panels; franchiser reports monthly, business statistical information allowing owners to respond quickly to trends; franchiser builds marketing tools like websites, e-mail campaigns, television and radio commercials, signage, local store marketing and much more; the national buying group negotiates with vendors for best pricing and term giving franchisees the means to compete with the big box stores; private twice yearly "trade shows" cater to your product needs; franchisees have discretion to offer whatever products and services they deem suits their location. The brand is huge, nationally and locally--instant recognition of what they do.
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:
Convenient parking, 14 months left on lease, 3,400 sq. ft. corner unit on high traffic intersection w/ freeway exit 10 blocks away. Equipment includes a heat press for jersey lettering and convection oven for custom skate fitting. Huge recreation/fitness community center (Joan Kroc Center) across street. Center includes indoor Olympic size ice rink, gymnasium, skate park, three pools and more.
Owner has 20 years as franchisee and will continue to own another location in the area. Owner is proactive and supportive of fellow franchisees and would have vested interest in the success of new owner. Franchisor may require additional investment in working capital and inventory.
Market Competition and Expansion:
Only one competitor offering used sporting goods however they've de-emphasised used products in favor of online baseball equipment sales. Other than big box locations this store has the corner on the market as the preferred neighborhood sporting goods store. This location acts as the pro-shop for the Kroc center and is the only retailer with a comprehensive hockey and figure skate department.
Team sports has huge potential to supply both teams and individual players with uniforms and equipment. The fitness department also has lots of potential growth along with the bicycle category.
Reason for Selling:
Multi-Store owner downsizing to one location.
Additional Details:
- The property is leased.
- The owner is willing to train/assist the new owner.
- This is not a homebased business opportunity.
- This is a franchise resale opportunity.
Resources: