* Included in Asking Price
Desciption :This opportunity to acquire a well known profitable restaurant franchise, with building (leased land), established in 2005, will be best suited for someone who has a passion for business and a focus on adding additional value.
Asking price is for building value only and includes Franchise transfer fee.
Through your research and due diligence, you will note, the owner of this business have never been involved in the daily operations. Notable up-side potential for an individual or couple who will integrate well with the community and focus on the leverage opportunities believed not to have been exercised.
Current Staff of 30 includes General Manager, Kitchen Manager, 10 cooks, 14 servers and/or hostess, 2 bartenders, and 2 kitchen support. In most businesses of this size, it would be expected the owner would also be the General Manager position.
- annual average daily volume of traffic on road = 8800 (NSTIR 2009 records)
- Consistent Population growth = 3.5% - 4% from 2006 to 20011 (Canadian Census), 14% since 1991.
The minimum liquid equity expectation will be $500,000.
Financial Information :
Revenues had been trending up every year since inception, with 2012 in excess of $1,750,000. 2013 was the first year of decline. Keep in mind, owners have not been involved with any of the business' operations since inception.
Sellers Discretionary Earnings, which is the pre-tax normalized earnings of the business before non-cash expenses, a single owner's compensation (owner should be manager), interest expense or income, as well as one-time and non-business related income and expense items, over the past 2 years has been:
- 2013 t be published shortly
- $182,419 for 2012
- $186,755 for 2011
Business requires mandatory refresh, costing approximately $200k. Mortgage payments on $445,000 (65% LTV of total new business, 20 years, 7%) = $41k annually.
Recommended business planning is to focus on revenue growth. There are a number of areas that have been identified in discussions with the Franchisor that would have a meaningful impact on the business' performance.
Real Estate / Lease :
Broker believes there may be an opportunity to appeal the taxes of the property. Let's talk further, benefit for new owner if successful. The 5975 sft property + 1065 sft patio + 62 parking stalls occupy approximately 1.75 acres.
Land Lease - $75,000 per year, increasing to $80,000 November 2015 - 2020, additional terms thereafter.
Common Area and Maintenance - includes taxes, maintenance, management, etc. Landlord provides all services to up-keep property
Building owned by seller - anticipated appraised value is in excess of $750,000.
Mortgage payments on $445,000 (65% LTV of total business & building, 20 years, 7%) = $41k annually.
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