Established Window Treatment Franchise-N. Arizona

Not Disclosed, AZ


Asking Price: Annual Revenue:
$1,500,000 $1,797,442

Retail: Home Furniture & Furnishings


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RE: Established Window Treatment Franchise-N. Arizona Broker: Patrick McAdams

Quick Facts

Asking Price: $1,500,000
Annual Revenue: $1,797,442
Net Profit: Not Disclosed
Cash Flow: $462,279
Total Debt: Not Disclosed
FF&E: $230,767
Real Estate: Not Disclosed
Year Established: 2006
Employees: 6
BBN Listing #: 59404955
Broker Reference #: 4102-16778

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Business Overview:

This is your opportunity to own a well-established (15 years in business) franchised window treatment business. This franchise has locations all over the United States and wins awards every year. The franchisor is well respected and provides excellent training and support for their franchisees. The franchise offers protected territories, a national lead system, excellent training, ongoing business coaching and support. They work with Hunter Douglas, Norman Window Fashions, Springs Window Fashions, and other well-known names in the industry. The vendors provide excellent support and training as well for the franchisees. Being a part of this system gives you access to national buying power of a big box store, but is owned and operated like a mom & pop store. They also offer a private label selection with excellent quality to help give them a competitive edge.

This franchisee is a husband-and-wife team that has excelled in the business and is consistently in the top 25% of franchises in the system. A new owner takes over a great team of salespeople and installers (6 full-time employees). This turnkey opportunity is an excellent opportunity to get out of the 9-5 grind and blaze your own path. This opportunity will not last long.

The business offers free in-home consultations for its clientele, professional advice, measuring, and installation. They also provide ongoing service and support for their customers. The local owner is responsible for local marketing as well.

A new owner will have to attend a mandatory 2-week training at the franchise headquarters. After taking over the franchise and going through the initial training, the franchisor will also act as a business coach to help you succeed. This is in addition to the support the sellers will provide as well.

Since the owner is a husband and wife team, they both take a salary from the business. With the add-backs done by the listing broker, both the husband and wife's salary was added back to cash flow. But then an adjustment was made to account for replacing one of the owners with an employee (either sales or showroom manager) for about $60,000. So if a couple purchase this and run it together, a new owner can expect to take home an extra $60,000/year. Please ask the listing broker about this.

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Property Features and Assets:

They have 2 showrooms in their territory that they operate. Clients can come in and explore all the products that the business has to offer. assets = $230,767.

Market Competition and Expansion:

From IBIS World: The Window Treatment Stores industry experienced modest growth over the five years to 2021, supported by an increase in housing starts and private spending on home improvements. However, demand was limited as consumers increasingly consult general home improvement and decorations stores for their window needs on the basis of price and convenience. Despite mounting external competition during the period, sales of window treatment products from specialized stores benefited during the five-year period amid rising disposable income and consumer confidence. Over the five years to 2021, the industry has been kept afloat by sales of customized products to affluent customers, which generate more revenue than mainstream brands also offered at the Home Depot Inc., Lowe's Companies Inc., and department stores. IBISWorld expects revenue for the Window Treatment Stores industry to increase an annualized 2.2% to $1.8 billion over the five years to 2021, including an expected increase of 7.0% in 2021 alone. Online retail has also emerged as a strong form of competition for industry participants by offering consumers more options and lower prices. As a result of lower operating costs, online retailers such as Amazon.com Inc. can offer lower prices to consumers, putting pressure on brick-and-mortar retailers. This trend is expected to be increased by the COVID-19 (coronavirus) pandemic in 2020 as brick-and-mortar stores temporarily closed. Due to increasing price-based competition, industry profit is only expected to increase slightly over the five years to 2021. While specialized window treatment stores are not necessarily luxury retailers, higher income consumers are more likely to forgo lower prices offered at general home improvement stores in exchange for higher-quality and customized products. Over the five years to 2026, revenue is anticipated to increase as the economy recovers from the pandemic, rising an annualized 0.8% to $1.8 billion. The industry is expected to benefit slightly from increased disposable income over the next five years and a recovering economy, which is likely to lead consumers to spend more on curtains and specialized window furnishings. Competition from general home improvement stores and online retailers will continue to be the greatest obstacle for this industry as many consumers will continue to search for the best prices available, at the forfeiture of quality. The current owners focus their efforts on residential clients (accounts for 95% of their revenue). The opportunity for growth in the commercial sector is unlimited (and very profitable). A new owner could hire a sales person dedicated to pursuing commercial opportunities.

Reason for Selling:

Retirement.

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.

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