This innovative food related dessert and feel good snack concept operates out of multiple locations in the Greater Los Angeles area, as well as out of mobile catering vehicles. The chain is poised for a new operator to take the concept to the next level in order to become a regional, statewide or nationwide concept. The owners, who developed the concept and brand from inception to its enormously successful current state, may be willing to work with a new operator with significant expansion plans to assist with the implementation and development that they don’t have the bandwidth to accomplish themselves. The chain commands a remarkable 84% gross margin!
The business operates out of several retail locations – 3 of which are located in small, medium and large shopping plazas. The chain also has two mobile catering vehicles. Each typical bricks and mortar facility is between 815 and 1,500 square feet, with rents ranging from $3,100 per month to $4,000 per month, and is on a secure lease with options. The locations do not have hoods, nor do they need hoods or walk-ins.
This chain has literally carved out its own unique market niche. While one franchise competitor exists and a few mom and pop style operations come and go, none of the competitive brands, locations or their products has been embraced by customers to the degree that this chain has.
The established and extraordinarily well branded chain is poised for immediate growth. New operators will likely seek to grow it into a regional or national operation, and evaluate the brand’s tremendous potential to become a national or international franchise, or to simply license the name and concept, while providing licensees their proprietary recipes and flavors. As the founders recognize the opportunity and are regularly approached by eager franchisees, they may be willing to assist the buyer in those areas where their strengths can best be capitalized on - establishing new locations, instilling a strong company ‘culture’ and creating innovative customer embraced products.
The business has had such strong organic success, it has not been heavily promoted and event / catering requests were often not responded to. As such, opportunity exists to add several vehicles and locations. Since the concept does not require its facilities to have a hood or walk-in coolers, existing food related businesses can be cost effectively converted. The concept has succeeded in every size and type of shopping center that it has been it.
DealStream.com is an online community for dealmakers with over 100,000 active members in 100 countries.
Our members include entrepreneurs, corporate executives, private equity groups, business brokers, investment bankers, and M&A advisors. They use our website to buy businesses, sell businesses, and expand their professional networks.
If you are looking to buy a company or buy a business, we offer a searchable database with over 15,000 listings of businesses for sale, companies for sale, and franchises for sale. We have a lot of listings for middle market businesses for sale and large businesses for sale.
If you are looking to sell a company or sell a business, you can list your business for sale for free and reach thousands of business buyers and intermediaries.