Salon and Day Spa With Absentee Owner For Sale

Business description

This is a unique salon and day spa where the owner is completely absentee and works 3 hours per month. Rather than being independent contractors or employees, the 8 hair stylists, 1 aesthetician, and 1 nail technician have their own business licenses and rent the booth spaces through commercial leases. Customer service is performed by the renters, and the renters are responsible for paying the receptionist they contract. The cosmetologist manager manages the business for the owner in exchange for a rent break. The owner’s duties include paying the bills, ordering supplies once a month, occasional repairs, and sending statements to the bookkeeper. The renters pay $747.66 per month with 3% increases every January 1st, and their leases extend until 2014. The services offered by the renters include manicure, pedicure, facial, waxing, glycolic treatment, hair, color, foil, and cosmetics. The renters also sell their own retail products so the owner carries no inventory. As indicated on the lease, the owner supplies water, sewer, garbage, electricity, janitorial service, and kitchen and bathroom supplies. The owner has other business interests and wishes to pass this business to a new owner looking for steady cash flow and minimal management headaches.

Property information

Real Estate:

Lease

Location:

The owner has put in $95,000 into the remodel and this well located salon and day spa looks gorgeous. There are 8 stations, 3 private rooms, a pedicure station, and an open waiting room. Refer to the equipment list for items that belong to the owner and items that belong to the renters. There are over 20 parking spaces. The renters set their own hours and most of them work 9-8 Tuesdays through Saturdays.

Other information

Expansion potential:

There is currently a vacancy on 1 station. One could add another station if the retail space were decreased. The building next door might be available for lease as well if the new owner wishes to expand the operations.

Competition / Market:

This is an absentee owner operation that provides steady cash flow and minimal management headaches. The owner leases the 1,432-square-foot premise for $1,860 per month and rents each booth and room to the practitioners on long-term leases. The owner has no employees, no inventory, and does not handle customer service.

Support & training:

Negotiable. Minimal training required.

Reasons for selling:

Owner has other business interests.

Financing available:

Cash at closing

Furniture / Fixtures value:

$70,000 (included in the asking price)