Business Description
Well positioned in the market for significant national & international growth. Sale includes access to all systems (agreements, registrations, manuals, website, technology, trademarks, marketing, procedures) in place and operating smoothly. Virtually unlimited U.S. Domestic and International opportunities for expansion.
Building Equity. Once you sell a few franchises or open your own stores, you significantly increase the value of your Master Franchise business. Also, as other units open in other territories and the Franchisor grows, your territory may become very valuable.
Very Few Employees. Typically, you can operate this company by yourself as the company is currently operating or have an administrative assistant, a trainer or other support staff or salesperson. As the business grows larger you may need to add more staff and spend minimal time with the business while enjoying a large substantial income.
Financial Projections
Franchise Fees. When a franchise is sold, the license fee is $35,000.
Royalties. Royalty was structure at 3% for the first 10 franchises and not it’s 6% for all new franchisees. (few prospects on the pipeline)
Royalties: $180,000 for the first year based on 10 current franchises based on 3% royalty. New Franchisees royalty is 6% moving forward.
Packaging: $60,000 in gross revenues from the 10 franchisees, with a 50% margin, netting an additional $30,000 per year. (This is something the owner is working on establishing as well as other ancillary product lines and revenue streams possible that will be provided to their franchisees that will result in more revenue stream.
SDE: $194,069 from the P&L. The projected SDE for all existing franchisees, once the grace period ends paying royalties will be over $400,000 within the first 12 months and continue to increase as other franchisees in the pipeline sign up and open their stores.