Million Dollar Tan Salon Unbeatable Hollywood Location
Location: California, United States
Category: Services
Type: Established
Asking Price: $950,000
Cash Flow: $350,350
Revenue: Not Disclosed
Gross Income: $701,448
Inventory: $5,000 - Included in the Asking Price
FF&E $217,019 - Included in the Asking Price
Real Estate: Not Disclosed
This absentee owned million dollar tanning salon is a local phenomenon. While still in its infancy, this salon s ultra impressive revenues continue to increase month over month even during the slow season. Plus, the salon is absentee run, has engaged in little marketing, and still has room to add another 4 tanning units! This facility s unique location offers it a sustainable competitive advantage that simply cannot be taken away. An incredible fifty-five percent of its revenues (over $30,000 per month!) are derived from recurring automatic monthly Electronic Fund Transfers making this one of the safest and most stable tanning salons in the area.
Facilities:
The 2,350 square foot facility rents for $8,500 per month, with no major rent increases until the third lease year (when it increases 3%). The business is on a 10 year lease, with 8.5 years remaining and two five year options. With its very unique location, this facility has ideal neighbors and plenty of parking. At present, management has capacity to add 4 plus tanning units, and has maintained a floor plan that lends itself to growth. All of the equipment will be paid off in the sale.
Financing:
Not Offered
Support:
2 Weeks at 20 Hours/Week
Competition:
Competition in the area is considered high, as this salon is located in the epicenter of one of the most image conscience cities in the world. This salon, however, offers clients a very unique concept that differentiates it from its competition. In addition, its location cannot be encroached upon, which will allow it to continue on its impressive growth trajectory until revenues stabilize in the salon s 3rd to 5th year of operations.
Growth:
While new owners may not seek to change a good thing, new owners may seek to add additional tanning units, diversify the service offering, engage in an aggressive marketing campaign, or seek to operate the salon themselves (owner managed salons tend to outperform absentee owned salons). As of August 1st, current management increased prices 10% without customer complaint or any fallout in new memberships or renewals, so average dollar sale has already dramatically increased! In addition, the salon is located in a high growth / redevelopment area.
Reason Selling: Personal
Number of Employees:
Year Established: 2005
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