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Longstanding Franchised Family Restaurant

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Annual Revenue: $1,110,000

Minimum Equity Required: $150,000

SDE: $205,000

Location: Nova Scotia

Industry: Restaurants

ID: 1341

Status: Sold

Description

For over 45 years, this community staple has proven to stand the test of time, and it all comes down to value and service delivered from a wonderful staff. If you love to be of service and desire freedom that can come from business ownership, then this would be an ideal opportunity for someone wanting to put some effort into taking the business to the next level, which wouldn't take much of an effort as there are some simple wins.

- excellent hours of operation - open a total of 65 hours/week.
- solid base of staff, many long term
- have not instituted any delivery options, which would very likely add 20%+ to revenues, or well over $50k in bottom line.
- zero social media has been done
- Well cared for and maintained property. (Not new, but cared for, clean, and maintained)
- Kitchen appliances all natural gas or electric, in very good condition. Brand new walk in freezer.

Will it be you who gets to reap the lifestyle rewards of this longstanding profitable community staple?

The owner is selling 100% of the authorized and issued share capital of the company. The offering price considers Working Capital is adjusted at $0, meaning the negotiated working capital amount will be in addition to the offering price. See Financial section for more details.

By completing the NDA and becoming adequately qualified, you will be sent a full Offering Memorandum that will answer most, if not all, of your questions when the listing becomes live.

Financial Information

Fiscal Year End is March 31.
Revenues and Seller's Discretionary Earnings:

2023 In-House Financial Statement (April 1, 2022 to March 15, 2023)
Revenue: $1,110,000
SDE: $205,000

2022
Revenue: $840,000
SDE: $55,000

2021
Revenue: $695,000
SDE: $180,000

2020
Revenue: $1,380,000
SDE: $160,000

2019
Revenue: $1,480,000
SDE: $220,000

* Seller's Discretionary Earnings (“SDE”) is a calculation of the total financial benefit that a single full time owner-operator would derive from a business on an annual basis. SDE is the pretax and pre-interest profits, before non-cash expenses, owner's benefits, one time investments, and any non-related income or expenses. SDE may require that expenses be adjusted if a new owner (Purchaser) will necessarily need to take on a new expense. SDE is also referred to as Adjusted Cash Flow, Total Owner's Benefit, Seller's Discretionary Cash Flow, or Recast Earnings.
 
** Our expectations are for a minimum 35% down payment on the final negotiated purchase price. Feel free to run some of your own calculations here:
https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/financial-tools/business-loan-calculator

Operations

The property is leased at $59,500 per annum plus Common Costs and applicable HST (effective October 2020 until September 2025).

The lease agreement term will expire on September 2030 with an option to renew.

*Gateway Business Brokers operates as an independent contractor and is not an agent, employee, partner or broker of the Seller, Buyer or any other party and does not owe fiduciary duties to prospective Buyers. If the business Purchase involves a transfer of real estate, of any kind, the Buyer/Purchaser shall obtain the services of a licensed lawyer for the conveyance and land or lease transfer element(s) of the transaction.

For more information on this listing, please complete our Non-Disclosure Agreement

Complete NDA For Full Overview
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