Mississippi 4 Store Multi Unit Chicken Franchise, $763K in earnings

Description

Four chicken franchise restaurants for sale in Mississippi. The locations operate under the same franchise system and generated approximately $6.96 million in combined sales during the most recent year.

Financial profile

• Combined annual sales: approximately $6,956,666
• Seller-reported owner earnings: approximately $763,167 in one section of the listing
• Seller-reported owner earnings: approximately $717,313 elsewhere in the listing
• Buyer prequalification requirement: approximately $350,000

The listing contains two different owner-earnings figures. Buyers should confirm the correct amount and review the adjustments used to calculate owner earnings before relying on either figure.

Franchise costs

• Royalty fee: 5%
• Marketing fee: 3%
• Transfer fee: $20,000
• New-owner training: approximately five weeks

Continued operation under the current brand will require franchisor approval and compliance with the applicable franchise agreements.

Four-location portfolio

• Combined space: approximately 14,547 sq. ft.
• Indoor seating: approximately 346 guests
• Patio seating: approximately 124 guests
• Approximately 145 parking spaces
• 87 employees across the portfolio

The restaurants operate daily from approximately 10:00 AM to midnight and support dine-in, takeout and delivery sales.

Leases

• Leases stated to extend through 2044
• Combined base rent: approximately $58,900 per month

Buyers should review each lease separately for rent increases, CAM and tax charges, renewal provisions, assignment rights and any franchise-specific occupancy requirements.

Operations

The four restaurants are fully equipped and currently operated according to franchise standards. Existing staff and operating systems are already in place across the portfolio.

A buyer should review store-level management carefully to understand how much oversight is shared between locations and which managers are important to continued operation.

Growth

• Increase catering
• Develop school and youth-sports partnerships
• Expand local marketing
• Increase community and group orders
• Review opportunities for additional operating hours
• Improve labor and food-cost controls by location

Financing and reason for sale

The listing states that SBA financing may be available to qualified buyers with approximately 15% down, subject to lender and SBA approval.

The seller is offering the portfolio as part of a geographic consolidation.

Buyer review

Buyers should review financial statements for each restaurant separately, including sales, owner earnings, food costs, payroll, delivery fees, occupancy costs and store-level profitability.

Franchise royalties, marketing fees, transfer costs, equipment ownership, required remodels, lease obligations and the conflicting owner-earnings figures should all be resolved before closing.