TWO LOCATIONS INCLUDED IN THIS SALE AT THIS PRICE - STORES NOT SOLD SEPARATELY
Are you looking to enter the restaurant business with a strong National Franchise with 1,200+ locations? And to reduce your risks, by buying two established franchises with proven financial success via tax returns to support the numbers. With over $1.9 million in combined sales in 2021, a well managed cost structure and 2021 Working Owner Cash Flow* greater than $300,000, these stores are rare to find? All the hard work is done and your risk is significantly reduced! The owner is retiring. We reduce the price by $150,000 in September because the inflation related to food costs has taken a bite out of the earnings in the first half of 2022 knocking down cash flow by $40,000. The owner is adjusting prices as well as the franchisor had a special running on a sandwich which were being sold that cause food costs to jump 1%. Food costs were up 3.5% in the first half of 2022.
This franchisor has a great training program as well as good franchise support system. Oh did I mention, they have the best sub-sandwiches in Arizona if you ask me. If you have an interest, then take the time to look closely at these two great franchise locations in Southeast Phoenix Metro Area and in Pinal county. These two stores have seen year-over-year sales increases since opening (One store 2021 growth was nearly 30% while the other was about 25%), even during the height of Covid sales were booming!
The stores have been operating for over 7 years. In 2021, Food costs were 27-28% of sales (first half os 2022 were closer to 31%) and labor costs at around 30%-31% of sales which includes payroll taxes. The 2021 combined sales were $1,922,000 and Working Owner Cash Flow over $300,000. In 2022, Working owner cash flow will land in the $250,000 range. The locations have managers in place. So you'll manage the managers and fill in for shifts.
SBA LOAN. DO YOU QUALIFY?
SBA Loans are a great way to get into a business with training and a network of other owners to lean-on. SBA Loan is available for these stores with an interest rate of Prime Plus 2.25-2.75 variable 10 year loans. Prime rate as of September 1, 2022 is 5.5%. With 20% ($130,000) down the monthly payment will be around $3.725. Sales are up 3.7% in 2022 first half. If you work at the stores and sales remain the same as does the costs structures, you'll be taking home more than $250,000/annually based on 2021 results. To qualify one needs a FICO score over 700, a meaningful net worth proving success and the down Payment plus closing costs, total transfer fees for two stores of $20,000, training fee of $2,500 and working capital.
LEASES AND OPERATIONS
There are two locations with long-term leases. The first location has 2,600 Sq. Ft. with total rent of $6,593 which includes NNN/CAM, seating for about 50 and an additional patio seating for 24. This location was built in 2014 and has plenty of parking. The second location has 2,625 Sq. Ft. with total rent of $5,986 which includes NNN/CAM, seating for about 50 and an additional patio seating for 16. This location was built in 2015 and has plenty of parking as well. There are a combined 28 part-time employees as well as 2 managers.
* Working Owner Cash Flow is Defined By This Broker as the Tax Return Net Income Plus the Owner's Salary and All Reasonable and provable Owner Perks. It does not include cash an owner may take from the business.
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