Orange County Tan Salon Chain
Location: California, United States
Category: Services
Type: Established
Asking Price: $700,000
Cash Flow: $247,000
Revenue: Not Disclosed
Gross Income: $580,000
Inventory: $350 - Included in the Asking Price
FF&E Not Disclosed
Real Estate: Not Disclosed
This tan salon chain offers it customers a high volume, low cost standardized tan service. The chain, which currently operates from 4 locations, operates extremely high volume stores (some with more than daily 225 tanners) that run efficiently without supervision from the non-operational owner. The company offers new owners a great deal of low lying fruit to increase top line revenues, and bottom line margins. The owner s willingness to finance a portion of the sale allows for greater simplicity in the acquisition process.
Facilities:
The chain s name, touted as the best in this segment of the industry, and its facility leases, which have been negotiated at favorable rates, will transfer in the sale.
Financing:
Owner will consider if secured
Support:
4 weeks @ 20 hrs/wk
Competition:
Competition varies by each of the 4 locations. This chain s competitors, however, tend to be single tanning salons catering to a very different tanning consumer segment. No other tanning salon chains dominate this chain s consumer market segment.
Growth:
The chain does not offer high-end tanning such as spray tan, hand held or stand ups. Nor do they engage in local or regional advertising, where it may be able to obtain significant economies of scale. Also, the company does not actively push its retail products or memberships (or train employees to do so it is reported that membership volume triples when employees are given incentives to focus on such sales). This chain is poised to achieve dramatic cost savings for any additional product or service.
Reason Selling: Owner seeks to retire.
Number of Employees: 26
Year Established: 1991
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