What is the current gross revenue for these restaurants?
The current gross revenue being generated is estimated at $1,954,056.
How do the restaurants profit?
Current profits are generated from the gross revenue, minus food purchases, payroll, supplies, and operating expenses. This will determine your net/cash flow.
Can I finance these restaurants?
Yes, this business has been pre-approved for financing of up to $685,098 with an estimated $79,902 down (amount needed is variable depending on buyer’s liquidity and credit score). Buyer must also meet the minimum SBA requirements for lending to include: a minimum credit score of 680 and relevant experience in the restaurant industry, or some type of previous management experience from another industry. Seller financing may be available. View SBA loans or more Financing Options Here.
What is required in order to qualify for purchase?
Typically, most franchise restaurants will have liquidity and net worth requirements (to be determined on an individual basis by franchisor), require the buyer to attend an interview for approval, background check, and in most cases, require you to form an entity such as an LLC or Corporation to purchase. This not only protects the company, but also ensures protection of your business. If you need help forming this, we recommend that you Form A Corporation Here.
What are my expenses and overhead for a restaurant business?
Expenses will vary for each restaurant owner depending on the type of restaurant, number of employees, and location. Current expenses for this owner include: royalties, payroll, payroll taxes, workers compensation, advertising, supplies, food, utilities, property rental fees, permits and licenses, phone, and liability insurance. Expenses are estimated to be $989,789 per year.
Are the restaurant properties owned or leased?
Currently the owner leases the properties. New owner must be approved by the landlord. Note: New buyer will sign lease terms with the property owner.
Where are the restaurants located?
Located in the Berkshire County, Massachusetts region. Physical addresses will be released to qualified buyers upon execution of an NDA.
What type of equipment is included with the sale?
Current list of equipment includes: back refrigerated counters, sandwich unit, microwaves (commercial grade), toaster oven, cooler, freezer, baking oven, proofer, bread trays, liners, veggies cutter, tomato cutter, thermometer, bread template, soda fountain, ice machine, POS system, camera security system and furniture. Estimated value is $60,000 – $150,000 each restaurant.
What size are the restaurants and how many customers can they seat?
These restaurants can seat between 6 and 40 inside.
Do the restaurants currently have a beer or liquor license?
No, there is no beer or liquor license included with this sale.
How does the selling price of Subway get determined?
Subway valuations are determined by using two different methods. First and foremost, Subway franchisees prefer to use a ratio of 30:1-40:1 of the gross weekly store sales based on a trending 40-week average. It’s important to recognize that many third-party lenders also recognize this higher value. Buyers and Sellers may also use a standard valuation method such as a 3-4 multiple of EBITA based on fair market comparable sales, location, gross volume, age of the store, income, and variable other factors. However, typically the weekly sales average approached is preferred and used to determine the selling price.
Is this a viable business model for growth?
Yes! To date Subway is the largest franchise in the world! Currently they are in the process of remodeling and advancing the business model which in turn is creating opportunities for existing and new franchise owners. In fact, CBS recently did a segment with Subway’s CEO about the company’s plans for the future. View The Video Here!
Do the restaurants offer drive-thru or delivery service?
Four locations offers delivery services and all five offer catering services.
How long has the seller owned the restaurants?
Seller has owned the restaurants for 5-11 years.
Why is the owner selling?
Owner is moving out of state.
What are the hours of operation?
These restaurants operate 7 days a week from 8am – 9pm.
What else should I know?
Established franchise opportunities. Turnkey and move in ready. Includes the cost of all equipment. Plenty of opportunity to increase revenue. Subway has a great reputation and brand recognition. Priced at $765,000. For additional information and to evaluate this business further Contact Us About This Restaurant Here!