ACQUISITION OPPORTUNITY S-1737

Area Development Rights- Quick Service Restaurant Chain

This Company has been on “auto pilot” for the last several years because the owners have spent their time and resources on their other (non-restaurant) business.

The Company, founded in 1995, purchased the right to own, operate or sub-franchise (to third parties) a nationally prominent quick service restaurant that features subs and salads.  The exclusive development rights include seven counties in Southwest Ohio and Northern Kentucky.  The Company’s intent from the start was to sub-franchise the concept rather than operate restaurants. 

The Company currently earns 3% of sales from five existing stores.  Additional income potential can be earned by the sale of new franchises.  They also have the right to open one new store without having to pay the initial franchise fee (value approx. $18,000).  The current owner’s involvement is very minimal.

 OPPORTUNITIES:

 ·        Sell franchises- the concept is #2 nationally in its category.  Needs more “energy” in this market.

·        Open a new franchise- Build a flagship.  No initial franchise fee required.

·        This is a good acquisition candidate for an existing restaurant chain operator wanting to diversify or an entrepreneur looking for a business to grow.

 FINANCIAL INFORMATION:

       ·        Net operating income has ranged between $11,600 and $25,800 over the last 4 yrs.; 

     ·        Initial cost for area development rights $142,500

 REASON FOR SALE:             

The owners are involved in other businesses.

 ASKING PRICE:

 $60,000 asset sale; free and clear of debt.