Last Revised: 9/11/19. Posting #: 10248983
Key Words: salon, hair, hair salon, beauty, great clips, franchise, oakland, alameda, absentee
Financial Info: Gross Revenue/Sales: ~$265,000/year. Price $89,000, with or without franchise (buyer’s option). SDE for the current absentee owner is close to $20K per year; it could be many times higher for an on-site owner-manager.
Profile: Haircuts will always be a “neighborhood business.” Amazon is not going to co-opt this market segment, it won’t be “out-sourced” overseas, and, even in economic downturns, people get their hair cut.
This is a franchise re-sale, with established employees and customers, for less than half the cost of a new location. But, the buyer can choose to take over the franchise Or “go independent” and relinquish the franchise. In a growing affluent downtown location, this is a relatively simple business model: a walk-in, convenient haircare salon that requires No haircare experience or expertise by the owner-manager. It’s a “cash-based” model with no receivables. And, it’s perfect for the “absentee” or “semi-absentee” owner. The franchisor provides extensive training and support.
This shop is located in the East Bay in a thriving, affluent downtown neighborhood. The current owner (franchisee) started the business and built out the premises in 2015. The lease extends through March 2020, and there are two 5-year renewal options (through March 2030) at favorable rental rates.
Currently there are over 1,000 active (monthly) customers. With minimal local marketing, this number could double in a short time. Annual sales are about $265,00 and growing. The owner (franchisee) is an absentee-manager earning modest profits (close to $20K per year) for very minimal involvement in the business. An on-site owner-manager could earn many times that number.
At $89,000, this Great Clips re-sale is a bargain!
Why buy a new unproven, unsubstantiated Great Clips franchise location for a lot of money, when you can buy an existing location with all the work already done at a fraction of the cost.
The estimated cost to buy a new Great Clips franchise territory, build out the facility, and get started is over $150,000. And, in addition the “starting-from-scratch” franchisee must find a location, negotiate a lease, build out the space, purchase and install equipment and fixtures, pay three to four months rent before opening the doors, hire employees, go several months at a loss while spending time and money to build a local market, etc. The total investment for a “new” franchise can easily exceed $250,000.
The cost to take over this existing location, with all that set-up time, work, and investment already done, is just $89,000, complete, including any franchise transfer fee. But, if the buyer does not want to be bound by the Great Clips franchise, the business can be acquired Without the franchise agreement. The choice is entirely up to the buyer.
The owner is open to an extended training, transition, and consultation period, depending on the needs and wishes of the new owner.
Price & Transaction. The price is $89,000 (subject to negotiation and terms). It is priced to sell. The business is offered as a sale of all the tangible/physical assets of the company, plus the intangible property, including the franchise (if wanted), phone number, customer data, etc. It does not include accounts receivable, cash on hand, or the facility rent deposits. The owner will assist with a smooth, “seamless” transition.
Note: All data on this business are provided by the Seller for information purposes only, and no representations are made by the Broker as to accuracy. The Broker has made no independent verification of the data contained herein. The Broker represents the Seller and does Not represent the Buyer. The Buyer is advised to perform independent due diligence and seek the advice of appropriate qualified professionals prior to purchasing the Business.
Broker DRE License## 01919755
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