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Delicious Gifts Delivery for Special Occasions

CASH FLOW

Specifications

  • Price
    $350,000

  • Revenue
    $1,307,314

  • Equipment
    $135,876

  • Location
    Omaha and Lincoln

  • Down Payment
    10%

  • Reason for Sale
    Partnership dissolving

  • Employees
    4 FT Managers (1 in each store), 46 PT employees

  • Lease
    4 Locations; Location 1 – 1,200 sq. ft. ($1,855/mo.), Location 2 – 1,438 sq. ft. ($2,861/mo.), Location 3 – 1,600 sq. ft.($3,517/mo.), Location 4 – 1,600 sq. ft. (1,855/mo.)

  • Intangible Assets
    Unique product, positive reputation, fun atmosphere and product, well-known franchise

Operating in a protected territory with 4 fully managed locations, this business has been serving custom and gourmet treats and gifts for over a decade. Part of a national franchise with locations across the globe, these stores are the only ones in Nebraska and the only service for Council Bluffs. With $135,876 in assets, these locations are well-equipped to exceed the expectations of this reputable franchise.  Each store is fully staffed with part-time help and a full-time manager.  The sellers currently oversee operations and do not need to work inside of the retail stores.  A new owner would have flexibility to be involved or absentee.

 

A delivery van comes with each location, helping to serve the increasing online and same-day delivery sales. The smallest store is 1,200 sq. ft., with the largest two both at 1,600 sq. ft. These locations have strong repeat business. The franchise average puts customers ordering 1.7 products each year, but these stores average between 2.9 and 3.1 products per person each year.

Business Highlights

  • Years in Business: 13, current owners bought in 2006
  • Location and Service Area: Omaha and Lincoln, NE
  • Demographics: Average customer orders 2.9 to 3.1 times per year, compared to the franchise standard of 1.7
  • Building: 4 Locations; Location 1 – 1,200 sq. ft. ($1,855/mo.), Location 2 – 1,438 sq. ft. ($2,861/mo.), Location 3 – 1,600 sq. ft.($3,517/mo.), Location 4 – 1,600 sq. ft. (1,855/mo.)
  • Reason for Selling: Partnership dissolving
  • Employees: 4 FT Managers (1 in each store), 46 PT employees
  • Hours: 8am to 7pm
  • Seller Training Period: 90 days plus franchise training
  • Growth Opportunities: Local marketing, online sales
  • Current Owner’s Responsibilities: Oversee operations and help as needed; do not work inside of retail stores.

Financial Highlights

  • List Price: $350,000
  • Gross Sales:
    • 2018: $1,307,314
  • Assets included in the purchase price:          
    • Equipment: $24,709 – computers, fixtures, furniture
    • Vehicles:  $111,167 – 4 delivery vans
    • Inventory: Rotates quickly and is ordered weekly
    • Intangible Assets: Unique product, positive reputation, fun atmosphere and product, well-known franchise

*amounts may vary

Locations

  • 4 stores across Omaha and Lincoln
    • Each store is located in a well-trafficked strip mall
  • Location 1 – 1,200 sq. ft.
    • $1,855/mo lease
  • Location 2 – 1,438 sq. ft.
    • $2,861/mo lease
  • Location 3 – 1,600 sq. ft.
    • $3,517/mo lease
  • Location 4 – 1,600 sq. ft.
    • $1,855/mo lease

Employee Information

  • Each location has a full-time manager – 4 total
    • Salaries range from $25,000 to $33,000 plus bonuses
    • Managers oversee each store’s operations, train and hire employees, and order inventory
  • 46 part-time employees
    • Part-time employees are paid between $9.00/hour and $10.50/hour
    • Help in stores and deliver products

Sellers oversee all operations and pitch in at the stores as needed. They also make a point to stop by each location on a regular basis. Please note that the sellers are passionate about the brand and product, and a new owner would not need to devote as much time to the stores.

Franchise Perks & Royalties

  • 82% brand recognition across the U.S. and Canada
  • Average gross sales per store is $497,000
    • Of these four locations for sale, only one meets and exceeds the franchise standard
      • Indicates that there is plenty of room for growth in the lesser performing stores
  • Over 1,200 locations worldwide
    • These 4 stores are the only locations in Nebraska, with the nearest stores located in Des Moines for Iowa customers

Royalties are 5% of gross sales.

Advertising fees are 3.5%.

Growth Opportunities

  • Continue to market online sales
    • Web sales currently comprise 80% of all income
  • Sponsor community events to advertise company name and product
  • Work one of the stores
    • If a buyer wanted to manage a store, that would increase the profit by roughly $25,000 to $34,000
  • Introduce all franchise products in each location
  • Increase advertising outside of what franchise provides
    • Franchise marketing fees are 3.5% - current owners advertise in print and radio
    • Additional targeted marketing by fliers or online ads
  • Market B2B services – 60 to 65% of weekday business is commercial purchases
    • Corporate gifts
    • Holiday parties
    • Corporate meetings and seminars
  • Increase walk-in traffic by sidewalk boards and signage

Valuation Details

The Firm Business Brokerage used a cost-to-create methodology to determine the purchase price of the business, determining that it would take far more time and energy to reproduce the business as it currently is than to purchase it. All equipment is in great shape and the spaces have been beautifully built out, making these businesses ready for operations!

Each location would cost at least $250,000 to start-up. 

 

The List Price for the business is set at $350,000.

Funding Example

Purchase Price:                       $350,000

10% Buyer Down Payment:     $35,000

10% Seller Financing:               $35,000

80% Bank Loan:                      $280,000

Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $653.

Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $3,990.

Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available. 

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210 N 78th St. 2nd Floor
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