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Franchised Cabinet Sales and Installation with Refacing and Resurfacing
NCListing DetailsOffice ID: CABINET1
Status: Active
Listing Broker: Jeff Snell, M&AMI, CBI, ABI
Listing Price: $550,000
Gross Revenue: $1,064,444
Cash Flow: $226,241
Inventory: $7,500
Inventory Included: Yes
FF&E: $75,000
FF&E Included: Yes
Real Estate Included: No
Sales Structure: Asset Sale
Seller Financing: Yes
Financing/Terms:
Seller will participate in financing as required by commercial lender/SBA.
Reason for Sale:
Other business interests in another market.
Training:
Seller will provide up to 80 hours of transition support at no additional cost. There is a $10,000 franchise transfer fee for the two territories to be paid by buyer. Ongoing royalties to franchisor are 6% of refacing revenue.
OperationsYear Established: 2011
Form of Ownership: LLC
Employees (full-time): 6
Employees (contractors): 1
Managers: 1
Business Hours: M-F 7am-3:30 and by appointment
Summary
Business Description:
This well established franchise custom cabinet and cabinet refacing business completes finishing in-house which allows much more to the client in terms of custom finishes- this also translates into higher margins. The business provides new cabinets in a wide price range from four manufacturers including MDF and solid wood. Raleigh’s housing market continues to be strong with lots of people coming, going, moving and upgrading. This companies target home is a track home built during any of the building booms from 1990- 2016 with the bulk of business coming from homes 10+ years old. The other target home is one built between 1960-1990 that has true wood cabinets built in place. People value the solid feel of real wood cabinets and will reface them in order to update and keep them. Everything about older cabinets can be changed to bring them up to date- not just color, but also functionality. Typically the refacing business has been residential, but in 2016 they completed a hotel job worth $130,000. That same client has already discussed another product in 2017 which will probably be worth over $200,000. The companies online and offline reputation is strong.
Historical Summary:
The franchise was purchased in 2011.
Owner Qualifications:
Owner should possess basic accounting, management, sales and marketing expertise. Current owner does not have carpentry/cabinetry skills.
Competition:
There is local and national competition. There are several franchises that offer similar services as well as 4-5 other lower end providers. The big box hardware retailers also provide cabinets and refacing at a cost that is ~25%-40% higher.
Potential Growth:
An outside sales person could generate more commercial refacing business and straight “finishing” business from other outside sources. The company sells new cabinets, but it is an area with lots of growth potential. The current lines carried afford a 3x-5x mark-up.
LocationType of Location: Flex – Office
Lease Expires: Dec 1, 2018
Lease Security: $1,850
Monthly Rent: $2,227
Square Footage: 3200
Facilities:
The business is located in a 3,200 square foot flex/office space with a showroom and separate workshop.
Franchise Renewal Date: Aug 1, 2021
Royalty %: 6%
Franchise Transfer Fee: $10,000
--Paid By: Buyer
Last Updated: Feb 4, 2017 / 3:07 PM
Financial Information Current as of: Nov 28, 2016 / 5:13 PM