Description About This Posting: Cell Phone Mobile - On-Site Repair Service
A leading cell phone repair franchisee with two locations in the San Francisco East Bay (and a fully-paid license for a third location), providing immediate repairs both in-store and on-site, generating an estimated $1,000,000-plus in the current fiscal year. This business has favorable long-term leases on two prime retail shops, trained & experienced technical personnel, sterling reputation and customer satisfaction, a national brand, and growing franchisor-generated business relationships.
Update as of February 2019-- A major national cell phone insuror has just requested that the franchisee handle an additional $18,000 of service work each month. That's over $200,000 of extra annual revenue!
The business has not been running at a profit primarily because the owner is not involved in day-to-day management or operations; however, despite this lack of owner-direction, it is expected to be respectably profitable in 2019. This is an excellent opportunity for a hands-on owner-manager to provide the marketing and operational leadership to take full advantage of all its positive attributes.
Over 7,000 customers are served each year, each one being an untapped opportunity for upselling of products and services. Word-of-mouth referral accounts for about 50% of sales, and national accounts from the franchisor are recently growing steadily. In-store accessory sales have doubled over the past few months, indicating a trend for higher revenues and increased gross profits. One location has been in business for 5 years, the other for 3 1/2 years. A third location can be opened in the area with a paid-for franchise license. This would increase revenues without increasing general administrative costs other than the additional rent payments.
There are 11 full-time and 2 part-time employees; but, one new owner could easily replace both of the two location managers, adding those salaries to the new owner's bottom line (close to $100k).
The franchise provides enormous value for branding, training, nationwide advertising, national accounts, and access to partners and supply chains. All the groundwork has been done and these locations are now poised to break out into profitability, especially with the dedicated attention of a new hands-on owner-manager.
Because the business is not currently operating at a profit, the seller proposes assessing value as follows:
1. Good Will $450,000
a. $1,000,000+ in sales @ 25% $250,000+
b. Customer database >20,000 records $200,000
2. Cost of two franchise licenses @ $25,000 ea $ 50,000
3. Cost of additional franchise $ 25,000
4. Replacement Cost of FF&E $ 28,000
5. Advantageous lease terms $ 36,000
6. Inventory (variable) $ 36,000
Total Value $625,000+
Plus 3 mobile service vehicles (if included in purchase).
The transaction. The owner plans to pursue a career in an entirely different field and is willing to sell the business for considerably less, asking $225,000 for the entire business all the assets set forth above excluding accounts receivable, accounts payable, and cash-on-hand. The vehicles will be included if the buyer takes over the financing payments. The asking price is 25% of the gross sales for the current fiscal year. The final price, of course, will be subject to negotiation and terms, and the seller will be most receptive to offers that can close expeditiously and involve no seller financing. All reasonable offers will be considered.
The transition. The seller will work closely with the buyer to transfer the franchise. (The transfer of the franchise is subject to approval of the franchisor in accordance with the terms of the official franchise disclosure document ['FDD'].) No employees have been informed of the owner's interest in selling and all employees are expected to stay, at the option of the buyer.
Upon signing an NDA, prospective buyers will be provided with the franchisor's identity and contact information to obtain the FDD, recent P&Ls, a detailed summary of the business opportunity, a comprehensive 'Selling Memorandum', the seller's disclosure statement, and the terms and conditions of the existing leases. Complete financial data, including P&Ls, balance sheets, tax returns, and franchise reports will be provided to a prospective buyer during due diligence. The buyer's obligation to complete the transaction will be contingent upon (a) franchisor approval, (b) landlord approval, and (c) the buyer's absolute satisfaction with due diligence.
This business is 'for sale by owner' directly. Once a confidentiality/non-disclosure agreement (NDA) has been submitted, the seller will contact the buyer directly to show the business and negotiate terms.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by any other person or entity as to veracity, accuracy, or completeness. No one has made an independent verification of the data contained herein. Seller is offering this business directly and is not represented by a broker. The Buyer is advised to perform independent due diligence and seek the advice of professionals prior to purchasing the Business.
To get more information about this Cell Phone Mobile - On-Site Repair Service business for sale in
San Francisco East Bay Area please phone Tim Cunha (Intermediary, Broker - BRE License #:01919755) at 877-244-3388 - if you get
voicemail please leave a detailed message - make sure you mention you
saw this posting/ad #249883 on BizBen.com. In addition to phoning
Tim Cunha, make sure you email Tim Cunha above to get more info about this
Cell Phone Mobile - On-Site Repair Service, to ask any questions or request an appointment to see this
business for sale, franchise, or opportunity. Thank you.
Related Links And Information Regarding This Posting
Professionals who understand the importance of world class business brokerage service and the value it can create. Specializing in assisting sellers and buyers with retail stores, restaurants, hospitality & lodging, manufacturing operations, distribution companies, e-commerce and service businesses.
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Founder & President Of BizBen.com (since 1994) & BizBenNetwork.com. I am the Lead Facilitator for the ProSell & ProBuy Programs on both platforms. I consult daily with business buyers, owner/sellers, and intermediaries daily about buying and selling businesses. Reach me direct at 925-785-3118.
California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
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