Well Established London Play It Again Sports Franchise For Sale

Business description

Well Established Sports Store Sale of Shares – $180,000. Your first $100,000. + can be tax free!
If you are seeking a ‘can’t miss’ opportunity to take a struggling business to a level you can be proud of, here it is.
The previous owner, Don Lemke, passed away suddenly in December 2008. Don was a world class triathlete who trained fearlessly every day. He competed around the world for 4 years before he became ill and couldn’t train. Sadly, the business was neglected during those 4 years of competition.

Location, location, location. This store is in a great part of London, ¼ mile from Fanshawe College. Competition is not a concern as the only true competitor is in the opposite part of town. London has a trading population (customer base) of over 600,000. The closest centres that have a similar store are in Kitchener to the east, and Sarnia to the north west, each of which is more than a 1 hour drive away.

Your first $100,000. + withdrawal can be tax free due to the fact that there is an existing shareholder loan. The loan would be transferable to the buyer on the purchase of the shares. The fact that a shareholder loan exists means that the company owes the shareholder money for amounts lent to the company by the shareholder. The repayment of the loan does not trigger income tax. So, if money is taken out of the company as repayment of the shareholder’s loan, rather than salary or dividends, then there would be a tax saving in the amount of the tax that would normally have been paid.

Property information

Real Estate:

Lease

Lease terms:

Building is leased with a renewal date of March 2018.
Base rent to March 31/13 12.50 sq. ft. + HST plus CAM 10.81 sq. ft. + HST
Base rent from April 1/13 to March 31/18 is 13.50 sq. ft. + HST

Premises details:

The store has square footage of 4,819.with a large stock room and office area. There are two washrooms, one with wheelchair accessibility. It is located in London at the busy intersection of Highbury Avenue and Huron Street with drive-in access from both main streets. There is lots of free parking and convenient parking at the front entrance of the store. Other tenants include the TD Bank, and Quiznos Sub Shop.
Premiere Fitness is located across from the parking lot. The store is minutes away from Fanshawe College. It is an established location of 15+ years with a loyal customer base.

Business Operation

Expansion potential:

There is potential to increase the square footage as there is a small retail space next door. Regular advertising, community involvement and using Constant Contact (an email assistance program) would greatly increase store business. The store has been running with low inventory. There is lots of opportunity for increased sales in all categories with proper management, increased inventory, and cash flow.

Competition / Market:

Only one of few used sporting goods retailers in London and the other store is in the southwest corner of the city. We are in the north east corner of the city.

Reasons for selling:

Estate Sale, death of owner

Employees:

10

Years established:

15+

Franchise terms

Franchise Agreement was renewed in March 2002 for 10 years so it is up for renewal in 2012.

Other information

Support & training:

Training required by franchisor upon transfer. On-Going support includes advertising, marketing. merchandising, inventory management, financial analysis and more. Additonal investment in working capital and inventory may be required upon transfer.

Furniture / Fixtures value:

$7,000 (included in the asking price)