Prime Location MD Profitable Franchised Sign Business For Sale

Business description

This franchised sign business is located in a very prime location in MD. Ownership has operated the business successfully for over 10 yrs and are now looking ahead to their retirement.

This represents an attractive opportunity for the right buyer(s):

· Affiliation with the Number One sign franchise, as rated by Entrepreneur Magazine eight years running, with nearly 850 franchisees around the world;
· A well-established, profitable business in a territory with a dense population of small to medium-size businesses and several government offices;
· An active customer list of more than 1,000 local and regional businesses and government agencies (375 placed orders in 2009 and 850 have placed orders in the past three years);
· An attractive location in a modern, upscale business park, easily accessible from anywhere within the five-mile radius that generally defines their exclusive territory;
· Very favorable lease terms;
· Substantial potential for further profitable growth.
· Through its franchise affiliation with Sign*A*Rama, the Company has built up a good relationship with a reliable group of suppliers, with whom it has established favorable credit arrangements.
· The operation is fully equipped with state-or-the-art equipment
· The Company has a broad customer base.
· The Company has an excellent staff.

The Company manufactures all of its vinyl signs. Many other offerings, such as channel letters, neon signs and digital signs, are acquired from other vendors. One of the owners focuses on sales and marketing through networking, frequent interaction with customers, and generally projecting an ongoing presence of the Company in its market area. There is also one outside salesperson.

The Company produces a range of one-of-a-kind or multiple computer-generated signs and banners made from cut vinyl graphics available in a wide range of colors. The Company also specializes in a wide variety of other sign media, including banners, electronic signs, box signs, channel letters, custom graphics, custom logos, directory signs, individual letters and more.

Revenue has been at or near $500,000 for the past three years, even in the teeth of the current recession. The business is well-positioned to expand when the economic recovery begins. The owners are seeking an acquisition price of $325,000.

Property information

Real Estate:

Lease

Premises details:

The Company occupies a spacious facility, including a very large enclosed bay in the rear. This gives them the ability to apply lettering and wrap-around designs to commercial vehicles in a clean, dry environment, regardless of the weather.

The Company leases 2800 square feet of space in a business park for $8 per square foot plus CAM, for a total of about $10 per square foot. The current lease, which began in March 2009, runs for three years plus an option for three additional years. The utilities average $350 per month.

This business serves a wide range of clients, including real estate agencies and property managers, major corporations and franchise chains.

Other information

Expansion potential:

The Company’s operating space and specialized equipment can support twice the current revenue level – that is, up to $1 million annual revenue. Because little or no additional investment in these and other overhead categories would be required, each additional dollar of revenue could deliver 30% – 40% profit margin directly to the bottom line.

The Company has established a solid reputation for quality and service in delivering signs for medium and large businesses in its market area. These sales have largely been the result of one of the owner’s efforts as a one-person outside sales force for over 10 years. If the new owner were to bring on one or two other effective outside sales persons, the owners believe revenue growth in the range of $100,000 per year would be readily within reach.

Finally, franchisor provides franchisees with the ability to accept orders through their web site, something the present owners have not yet put into practice. The new owner could capitalize this option, as another promising avenue for growth

Competition / Market:

Most of the Company’s business comes from customers within a five mile radius (its exclusive territory within the franchise – although they can take a business referral from anywhere.) There are 2 competitors in the area who proives only minor competition to this business. This particular business has set itself apart through the strength of the Sign*A*Rama brand and through its long-standing reputation for superb quality and customer service.

Support & training:

Franchisor will provide comprehensive training. Ownershi is willing to assist the buyer during a reasonable transition period. .

Reasons for selling:

Retirement

Trading hours:

The store is open five days a week, Monday thru Friday, from 8:30 am until 5:00 pm.

Financing available:

Seller’s brokers can assist qualified buyers in arranging outside financing. SBA loans may be available for qualified buyers with 20% down.

Furniture / Fixtures value:

$70,000 (included in the asking price)

Inventory / Stock value:

$3,000