This is a major national franchise with consistent growth in revenues and profits since opening in 2015. This business qualifies for an SBA loan and has solid tax returns to back the numbers.
Are you looking to enter the restaurant business with a strong National Franchise with 1,200+ locations? With over $900,000 in sales in 2021, a well managed cost structure and 2021 Working Owner Cash Flow* greater than $173,000, this store is a rare find? All the hard work is done and your risk is significantly reduced! The owner is retiring.
This franchisor has a great training program as well as good franchise support system. Oh did I mention, in my opinion they have the best sub-sandwiches in Arizona. If you have an interest, then take the time to look closely at this great franchise location in Southeast Phoenix Metro Area. This store has year-over-year sales increase since opening, even during Covid.
The store has operated for over 7 years. Food costs are 27-28% of sales prior to inflation raging on food costs. In the first half, food costs percentage is up 3.5%, cutting into the earnings of about $20,000 in the first half. The owner is raising prices as well as the franchisor ending a promotion that cause a 1% food cost increase overall. Labor costs at around 18-19% of sales which includes payroll taxes. The 2021 revenues/sales were $906,951 and Working Owner Cash Flow over $166,749. The location has a manager in place, but the working owner cash flow assumes you replace the manager.
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 depending on your credit. Prime rate as of March 28, 2022 is 3.5%. With 20% ($65,000) down the monthly payment will be around $1,863. If you work at the store and sales remain the same as does the costs structures, you'll be taking home more than $125,000/annually based on 2021 results or a 150%+ annual return on investment after financing costs. 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, rent deposits and working capital.
LEASES AND OPERATIONS
This business has a long-term lease. This franchise 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 14 part-time employees and one full-time manager.
* Working Owner Cash Flow is Defined By This Broker as the Tax Return Net Income Plus the Owner's Salary plus All Reasonable and provable Owner Perks. It does not include cash an owner may take from the business.
|2014 Total Population||51,855||55,683|
|2010 Number Of Households||18,195||19,776|
|2010 Persons Per Household||2.78||2.81|
|Median House Value||$106,600||$104,937|
|Income Per Household||$44,910||$45,148|
|2009 Number Of Businesses||880||916|
|2012 Number Of Employees||25,784||29,594|
|2012 Total Annual Payroll||$413,604,000||$510,908,000|
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