Leading Stationery And Office Supplies Retail Chain For Sale

Business description

Business Overview

Retail chain of around 500 franchise agreements in two segments on an exclusive basis: shops at street level, and business sales for the Internet, catalog and home delivery. Estimated sales volume of € 150 MM per year.

The company occupies a strategic position at the national level and has a presence outside of Spain. It has recently signed an exclusive agreement with Hewlett-Packard (HP) to install corners in the franchised stores for the sale of HP printing and photocopying services.

The Company derives its revenue primarily from:
1) Obtaining royalties and fees from franchisees (60% of revenue)
2) The payment of rebates and rappels main suppliers of the network (40% of revenue).

The company has registered 2 brand names under which they operate: 1 for the street shops and the other for the B2B segment that deals with catalog and home delivery. Customers are franchisees who get royalties and get rebates from approved suppliers.

The Company has 13 employees including the 2 owners who act as directors.Corporate offices are located in Madrid. Company does not have warehousing facilities because products are shipped directly from supplier to franchisee.

The organization of the Company is set up as a decentralized planning model, giving the regional Masters´s (licensed by the corporate group) the commercial development of the franchise in their respective areas, and participating with a percentage of royalties obtained. These Master´s operate as stores regulators due to its significant buying power.

Investment attractiveness: This business model does not exist in any other competitor in the field.

- Strong Branding: The trademark of the Company has a strong reputation in the industry, thanks to the extensive network of retail stores and advertising investments made by the Master.

- Cash flow generation and very low-risk business, unique in its sector: based on no products stocks, reduced personnel costs and diversified franchise network. The result is a high EBITDA margin (exceeding 40%), constant cash flow generation (no requirements for working capital or CAPEX), a leading operational risk reduction and non-financial borrowing needs.

- Substantial bargaining power with suppliers: The company, as the Master Franchisor, obtain great discounts from suppliers as the volume of purchased products increase. Suppliers also contribute to an advertising fund for brand marketing.

- Excellent customer relations: The company carefully selects its franchisees, train and assist them.

- Opportunity to diversify growth into printing and reprographic services by leveraging its exclusive HP Alliance.

- The possibility of geographic expansion into areas of low penetration.

Property information

Real Estate:

Lease

Lease terms:

Negotiable

Business Operation

Reasons for selling:

Retirement

Trading hours:

Regular office hours

Employees:

13 employees

Years established:

22 years

Other information

Support & training:

Directly bb Master Franchisor

Owner financing:

Owner financing is available. Please contact the seller for more information.

Financing available:

Negotiable

Relocatable:

This business can be relocated.