|Franchised Coastal Dog Daycare, Boarding, Obedience, Grooming and Retail|
NCListing DetailsOffice ID: PETCARE6
Listing Broker: Jeff Snell, CM&AP, M&AMI, LCBI, ABI
Listing Price: $500,000
Gross Revenue: $498,772
Cash Flow: $-13,237
Inventory Included: Yes
FF&E Included: Yes
Real Estate: $1,600,000
Sales Structure: Asset Sale
Seller Financing: Yes
Financing/Terms:This business plus land / building will be pre-approved for SBA financing. Qualified buyer with 10% downpayment may qualify for an amortization period of over 25 years. Seller will provide a component of owner financing to comply with SBA guidelines if required (but not expected to be).
Reason for Sale:Seller has other business interests.
Training:Seller will provide adequate transition assistance at no additional cost. Longer term consulting or part-time employment may be an option. Franchisor requires two weeks training conducted at franchise headquarters. Training cost is included in the $17,500 transfer fee to be paid by buyer.
OperationsYear Established: 2019
Form of Ownership: LLC
Employees (full-time): 13
Business Description:For SBA guaranteed loans receiving a PLP number on or before September 27, 2020 the SBA will pay on buyers behalf the first six months of principal and interest. This is not a deferral. It is a grant of the first six months of debt service.
The award winning franchised business provides cage free boarding, daycare, grooming and training services for all breeds of dogs after passing a temperament test. The facility offers indoor/outdoor play areas. The facility also features a doggie pool with fountains and multiple large fenced yards with playground equipment. In addition, the lobby easily accommodates a large space for a wide range of retail products, several private offices and insect and pest secure storage area for dog food and perishables. The business also offers multi-day stay packages at a modest discount. The business is a turn-key operation with bookings in place for future boarding stays. One of the unique features of this business model is that dogs are never left alone or without trained and certified staff companionship. This insures not only the safety of the animals, but their enjoyment as well. The crown jewel of this business is the facility which was upfit with the highest quality materials and designed with the ability to serve up to 200 dogs per day per state code. Seller believes that it is quite reasonable that 160 dogs per day is attainable without adversely affecting quality of service. Pet owners spend billions annually. Here's your opportunity to get your slice of the pet industry pie. The assets of this business can be acquired without franchise obligations for an additional $50,000 fee to the franchisor. The franchise royalty fees are at or below average for similar concepts.
Presented financials represent October 2019 - March 2020 actual on an annualized basis which averages 14% utilization of the facility. 25% utilization is anticipated to generate approximately $150,914 of annualized owner benefit; 50% $591,393; 75% $1,033,973 and 100% $1,472,852.
Historical Summary:The business was started in 2019 by the current owners and has become a fast growing and well-known business in the local community.
Owner Qualifications:New owner should possess general business skills such as accounting, marketing, employee/vendor management. A love for animals is a must.
Competition:There are several area businesses that could be considered competitors, however the amount of demand exceeds current supply and this businesses reputation, location and cleanliness are unmatched.
Potential Growth:There is opportunity to add revenue by offering outdoor fenced storage for automobiles, boats, recreational vehicles, etc. This same space could additionally be built out as private pet condos or outsourced training with minimal upfit. There is outparcel space available that could be used for drive thru coffee or other retail. New owner may consider raising rates. Another growth potential would be further expansion of retail products such as specialty feed, toys and accessories although current product selection is impressive.
LocationType of Location: Stand Alone
Real Estate for Sale: Yes
Real Estate: $1,600,000
Monthly Rent: $10,000
Square Footage: 13800
The physical location is one of the most attractive aspects of the business and is available for purchase at bank appraised value anticipated to be approximately $1,600,000. The business is operated from a recently updated purpose built facility including custom indoor and outdoor features. Dog moms and dads can view their pet live online at no additional per day cost. Indoor facilities have paw friendly surfaces and outdoor play areas have high-tech turf with engineered drainage. Attention to detail was focused on flow and cleanliness. Location has adequate parking and additional space available for expansion if desired.
Franchise Renewal Date: Apr 20, 2028
Royalty %: 6
Avert Co-op %: 1
Franchise Transfer Fee: $17,500
--Paid By: Buyer
Last Updated: May 22, 2020 / 10:19 AM
Financial Information Current as of: May 1, 2020 / 10:55 AM