3 Impressive DFW BBQ Franchises $556K NI in 2017! Financing in Place

Dallas, TX (Dallas County)

Seller Financing Available
3 Impressive DFW BBQ Franchises $556K NI in 2017!  Financing in Place
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Asking Price: $800,000

Cash Flow: $112,013

Gross Revenue: $4,300,000

EBITDA: $112,013

FF&E: $405,000

Inventory: $35,000

Rent: $44,288 /Month

Established: 1989

3 Impressive DFW BBQ Franchises $556K NI in 2017! Financing in Place

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Business Description

3 DFW BBQ Franchises $556K Net Income in 2017 Financing in Place

3 Impressive DFW-area BBQ Franchises. $556K Net Income in 2017! Financing in Place!

This is an incredible opportunity to own 3 extraordinary franchised BBQ stores in the DFW area! Total Gross Sales of an outstanding nearly $4.3 million in 2018, and on the same track in 2019. The franchise itself is under new ownership and has decided to sell (“refranchise”) these company-owned stores. The franchise is seeking a strong partnership with a new DFW-area franchisee.

This BBQ brand is incredibly well done, no pun intended. These BBQ restaurants have a special, amazing vibe that customers respond to... and the BBQ has been perfected for literally decades. The Franchise has multiple stores in multiple states, and has been going strong since its inception over thirty years ago.

These impressive restaurants are large (seating 110 customers), established, and well situated in their DFW-area communities. They are premier locations.

The franchise company is selling these stores because it has changed ownership. The motivated new owners want to focus on energizing the entire brand! They are moving forward on a number of fronts: a new website with online ordering; updated menus, trays, uniforms, and packaging; a new marketing firm. The franchise is even working hard behind the scenes to control costs by leveraging system-wide purchasing power for key proteins and other items.

In addition, the new owners have identified catering and other off-premise sales as a key driver of increased profitability. BBQ travels well! The Franchise has hired a team at HQ dedicated specifically to off-premise sales, in order to drive profit right to the bottom line.

One of these three Dallas-area stores has very consistent financials, and was only recently acquired by the franchise. It had a cash flow of nearly $114,000 in 2018. The other two locations were under different ownership. They had a combined net income of $443,000 in 2017, and then, under a new manager, a combined net income of -$1,690 in 2018. Needless to say, that manager is no longer in place, and the stores are getting back to normal.

The franchise knows that they could turn these restaurants around -- they already are, and the financials reflect that. And, in fact, there is another DFW-area franchised location that is doing very well and making a 10% margin. But the company’s core competency is in running the franchise, not running these particular Texas locations. The company is willing to deal with its own potential loss in order to move forward and find the right partner for these three stores.

This creates an almost unique situation. These three stores together would have sold for well over $1.5 million only a year or so ago; their combined 2017 Cash Flow was $566,000!

Not only is the pricing on these BBQ restaurants favorable, the financing is advantageous as well: the franchise company has secured favorable and transferable financing in the form of a fixed-rate note at 6%. (The SBA rate is both higher and variable.) This note has just over 5 years left on it, and it transfers with the purchase. It is currently valued at $650,000.

Amazingly, that means that these 3 stores already have most of their financing in place. This is incredibly uncommon, and fortunate. For $150,000 plus the financing currently in place, you can own 3 separate, high-grossing BBQ stores in the Dallas area. This is a rare situation!

This is an incredible opportunity to own 3 exceptional, high-grossing BBQ locations for only $800,000 -- less money that it would cost to build them from scratch! And the financing is already in place! This BBQ franchise is seeking a dedicated partner for these venerable DFW locations. Buy these fantastic locations and reap the rewards for years to come.

Detailed Information

Location:
Dallas, TX
Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
13,689
Lease Expiration:
5/31/2026
Employees:
48
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Equipment list for each location (3 total locations): 2 large Southern Pride smokers Walk-in Cooler Walk-in freezer Grills Fryers Refrigerated sandwich boards (cooler tables for salads, sides, etc) Steam tables and racks on prep lines Crescors Stand up cooler/refrigerator Warming drawers Ice machine Various storage racks Soda tower and guns Multiple POS terminals Tables, chairs, bar equipment Blues memorabilia (including BB King signed guitar) 2 total delivery vans, including 2019 model
Competition:
Locations are in strong market of DFW, in ideal locations with major road frontage
Growth & Expansion:
Established units, additional new units can be developed in the market
Financing:
$650,000 6% fixed-rate note, already in-place
Support & Training:
Full Support and Training at Company Locations. Field Business Support Leader. Dedicated Off-Premise Sales Team. Recurring Marketing and Operational Meetings. Training Manual
Reason for Selling:
We are embarking on a refranchising strategy for all company units
Franchise:
This business is an established franchise
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Business Listed By:
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