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Busy Franchised Oil Change and Auto Service Business
NCListing DetailsOffice ID: AUTO10
Status: Active
Listing Broker: Jeff Snell, M&AMI, CBI, ABI
Listing Price: $250,000
Gross Revenue: $655,044
Cash Flow: $117,556
12 Month Forecast: $675,000
Forecasted Cash Flow: $130,000
Inventory: $10,000
Inventory Included: Yes
FF&E: $26,547
FF&E Included: Yes
Acreage: .55
Real Estate Included: No
Sales Structure: Asset Sale
Seller Financing: Yes
Financing/Terms:
Seller will provide a portion of financing to well qualified buyer based on overall terms and conditions.
Absentee Owner: Yes
Reason for Sale:
Owner is serial entrepreneur and has other interests.
Training:
Seller will provide up to 80 hours of transition support within the first 30 days post transaction.
OperationsYear Established: 1999
Last Acquired: 2008
Form of Ownership: S Corp
Employees (full-time): 4-5
Managers: 1
Business Hours: 8am-6pm M-F; 8am-4pm Sat; Closed Sun
Summary
Business Description:
This successful franchised auto service center offers a wide variety of services such as oil changes, tune-ups, state inspections, brake and A/C services as well as maintenance and repair. However, this location does not currently offer tire sales / service which is a significant growth opportunity. This location has an average ticket of ~$67 and an average of 30 tickets per day. This location was opened in 1999 and purchased by the current owner in 2008. The franchise agreement renews in 2022.
Historical Summary:
This location was opened in 1999 and purchased by the current owner in 2008.
Owner Qualifications:
No special skills are required to own this business.
Competition:
Competitors are generally quick service only with no full service repair capability. Each year there are fewer "do-it-yourselfers". Increasing environmental requirements make using a professional shop like this one an environmentally friendly and responsible choice.
Potential Growth:
The largest opportunities for growth are the addition of tires sales/service and the buyer being a full time owner/operator. Tire sales/service at other similar size franchised locations totals approximately $400,000 per year. As an owner operator the managers compensation and benefits would be added to net profit equaling approximately $77,000 per year. The current owner is in the process of hiring a salesperson that would focus on cross selling and upselling as well as fleet sales one day per week.
LocationType of Location: Stand Alone
Lease Expires: Oct 31, 2017
Option: 4x five year options
Square Footage: 3000
Facilities:
The building is on a land lease which has three years remaining plus four, 5 year extensions (23 years total). The fair market rental rate is $3000 per month. The land lease is approximately $5,000 per month. This location features 8 bays and has one, 1,000 gallon tank; two, 500 gallon tanks and one, 300 gallon tank all installed such that a catastrophic tank failure would still be contained. There are no known environmental issues on the property. The lobby has recently been remodeled. The facility is well maintained, clean and has ample parking and lighting. The building is expected to appraise for approximately $350,000. The purchase price will be determined by the actual appraised value. The land lease rent has a 5% per annum escalator.
Last Updated: Jun 26, 2017 / 1:43 PM
Financial Information Current as of: Feb 17, 2017 / 12:00 AM
Lender Pre-Approved!
Diamond Financial