Established Retail Franchise

Business Overview:

Retail franchise operating in North Central Iowa. The business sells overstock, damaged items, end-of-lot items, and returns/open-box products at declining daily prices through a business model that creates a treasure-hunt shopping experience. Customers line up for new inventory drops driven by FOMO (fear of missing out).

The store has built a loyal following of approximately 7,000 social media followers and operates as a destination, not a convenience stop.

Approximately 80% of revenue comes from entertainment/treasure-hunt shoppers and 20% from resellers who purchase inventory to flip on eBay, Facebook Marketplace, and similar platforms. The business is turnkey with established vendor relationships managed through the franchise system.

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Property Features and Assets:

Approximately 5,544 square feet in a strip center on the south side. Approximately 3,000 square feet is retail floor space with the remainder used for receiving, storage, and back-of-house operations. The space was fully built out at opening in 2022 including electrical brought to code, plumbing work, ceiling repairs, carpet tile flooring, built-in countertops, and register system. The plaza has seen recent revitalization with new tenants including an overhead door company headquarters. Shared parking, no assigned spaces.

Assets = $17,000

Market Competition and Expansion:

No direct retail storefront competitors in this city market. A similar concept in the area recently closed. Chief competition comes from online discount sources: eBay, Facebook Marketplace, Amazon, and Whatnot. The business differentiates by offering a tactile, in-person experience where customers can see and handle merchandise before purchasing, eliminating the risk of online buying disappointment. The store / liquidation retail segment has grown nationally as a complement to e-commerce returns volume. Their franchising is actively evolving its model to embrace online channels alongside in-store sales.

Several untapped opportunities: (1) Online sales channels newly permitted by the franchisor after years of prohibition - eBay, Facebook Marketplace, Whatnot, online auctions. The CEO is exploring a branded online auction platform for all franchisees. (2) Additional weekly events beyond the current single event. (3) Extended operating hours - current schedule is limited by owner's commute and health. (4) Relocation to a larger space on the main commercial drag (West 4th Street) where bigger buildings are available, allowing more bins and merchandise on the floor. Physical expansion at the current location is blocked by Mason City's permitting requirements.

Reason for Selling:

Owner pursuing other business interests. Kindly ask the seller for more information.

Additional Details:

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