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Opportunities

East Coast Style Sandwich Shop

Sold

CASH FLOW

Specifications

  • Price
    $45,000

  • Revenue
    $695,879

  • Equipment
    $249,078

  • Location
    Lincoln, NE

  • Lease
    $3,744

  • Franchise

  • Reason for Sale
    Unable to devote time to business

  • Employees
    1 GM, 2 Supervisors, 10 PT employees

  • Intangible Assets
    750 Facebook likes and growing reputation

For over 40 years, this East Coast style sandwich franchise shop has provided tasty, fast subs, soups and salads. With 106 locations across 16 states, this Lincoln restaurant is the only one in the state of Nebraska. The current owner opened the store in 2015, and is looking to move on as he doesn’t have the time to devote to the restaurant. With a growing reputation and positive reviews, this is the perfect opportunity for a small investment or for someone looking to own and run a turnkey sub shop.

Assisting the owner is a General Manager, 2 Supervisors and 10 part-time employees. The store occupies an 1,800-sq. ft. endcap spot. If desired, there is space to open and operate a drive thru window. Since the franchisor offers rights to territory, another growth opportunity exists in opening locations in Omaha and Council Bluffs to dominate the market.

Included in the purchase is nearly $250,000 worth of nearly new equipment. Plus, for only $45,000 a buyer would be getting a franchise location for far less than the $325,000 to $525,000 it takes to open a new shop.

Business Highlights

  • Year Established: 2015; franchise began in 1976
  • Location and Service Area:  Lincoln, Nebraska
  • Reason for Selling: Unable to devote time to business
  • Employees: 1 General Manager, 2 Supervisors, 10 PT employees
  • Hours: Sun – Thurs 10am to 8pm, Fri – Sat 10am to 9pm
  • Services: Dine-in, carry out, and catering
  • Seller Training Period: To be provided by franchisor
  • Growth Opportunities: Purchase Omaha and Council Bluffs territories to own all Nebraska locations; increase catering, open a drive thru window
  • Current Owner’s Responsibilities: partly Owner/Operator, but there is a General Manager in place to handle day-to-day responsibilities -  a new owner could scale back their time in the business, or do away with the manager position to run as Owner/Operator as well

Financial Highlights

  • List Price: $45,000
  • 2016 Gross Sales: $695,879
    • Average sales volume of the top 25 locations is $1,104,437
  • Owner Profit/Cash Flow
    • 2016: $85,383 
    • 2015: $62,039
  • Assets Included in Purchase: $249,078 in Equipment         
  • $30,000 in initial franchise fees, with total startup fees totaling between $325,000 and $525,000
  • Intangible Assets: 750 Facebook likes and growing reputation

                   *amounts may vary

Employees

  • 1 General Manager – currently paid $50,000
  • 2 Supervisors
  • 10 PT employees
  • The current owner is also partly an owner/operator, but there is a general manager in place to handle the day-to-day operations
    • Decrease wages by working full-time in the store and handling the General Manager’s role and responsibilities

Pro Forma Profit & Loss - Monthly

  • Currently, the sub shop does nearly $58,000 per month in sales
    • Based on the conservative pro forma above, a new owner could earn $43,000 per month in sales with a net income of $5,441 – roughly $516,000 in sales and $65,000 in profit

*please note – this is based on an Owner/Operator model. A part-time or absentee owner would need to account for a higher payroll

   

Sales Analysis

Data pulled from a 16-month period (August 3, 2015 through December 13, 2016)

  • Of the $884,095 in sales, 85% came from prepared food transactions.
  • Together, beverage sales and catering sales equated 12% of the total sales, demonstrating that catering could see huge growth with the right kind of attention

  • Lunch, which had the most sales by far, had the fewest check average at $7.74
    • 62,285 total guests
  • Breakfast, with the fewest sales, had an average check of $10.42
    • 3,396 total guests
  • To capture the higher average check at dinner ($7.93), increase catering or advertisement to evening commuters

Valuation Details

The Firm Business Brokerage used a Cost-to-Create Valuation methodology to determine the Purchase Price of the business, as it has only had 1 full year of operation.

Furthermore, the franchise startup fees are between $325,000 and $525,000. Purchasing an existing location cuts that price dramatically, and is far more expensive than the $45,000 needed to purchase this operation shop.

List Price is set at $45,000.

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Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.