You may think it's something complex. But it's actually quite straightforward: A pizza franchise in Northern California.
Let's dig into the financials. ๐ผ
Revenue:
2022: $710k
2023: $733k
2024 (expected): $733k
Expenses:
Rent: $8,232/month
CAM: $667/month
Subtract the expenses from the revenue:
2022 SDE: $56k
2023 SDE: $50k
2024 SDE (expected): $100k
THIS BUSINESS IS SOLID. ๐
But let's look at the buyout price:
Asking price: $249k
Value of saleable inventory: $19k
Value of furniture, fixtures, and equipment: $50k
Total investment: $249k
Let's compare:
Revenue in 2023: $733k
Net profit in 2023: $50k
Return on investment: 20%
OPPORTUNITY ALERT. ๐
Hereโs the kicker: Low royalty fees at 2.75% grandfathered rate vs. 4-5% for new stores.
High-quality ingredients: fresh dough daily, premium meats, local produce.
This business has a strong customer base and multiple revenue streams: dining, takeout, delivery, catering, and parties.
Assuming the new owner ramps up localized marketing and explores additional revenue avenues, profitability can soar.
This is what I love about business:
With the right strategy and execution, you can transform this already solid foundation into a powerhouse.
The current owner is looking to pursue other interests, just imagine this business with new energy.
Like this deal? Comment โPizzaโ below to learn how to get this deal info and others like it every week. ๐