Franchise For Sale in Raleigh North_carolina

Floor Coverings Franchise Resale

Advert Id: 23683, Sellers Ref: (FLOORING3)
  • Location:Raleigh, North Carolina
  • Category:Franchise
  • Asking Price:$115,000
  • 115000
  • Sales revenue :$227,210
  • Net profit :Undisclosed
  • Furniture/Fixtures value :Undisclosed
  • Inventory/Stock value : $11,793

Business description

This established and respected franchised flooring products retailer and installer sells carpet (~75% of sales), hardwoods and laminates (~10% of sales), vinyl (~5% of sales) and area rugs (~10% of sales) at strong margins of 30% to 40% in the Raleigh/Cary area. The franchise fee is $45,000. The franchisor requires a first year marketing expendature of $40,000 and sample purchases of ~$5,000. The value of inventory currently is ~$12,000. The computer, proprietary software and electronics are ~$2500. Great opportunity to acquire an existing business, goodwill, client base with established location and marketing at near replacement cost.
Facilities
Well known enclosed open mall with some related construction/home products. Located on main city throroughfare. Location doesn't require owner to staff the location as other cover for owners when out.
Financing
Seller will provide some financing as required by SBA. Franchise royalty is 6% a

  • Competition: Competition is not hard to find! Big boxes do large volume in spite of quality and installation issues. Large local retailers also command some marketshare, but look upmarket to commercial and large residential. However, competition has diminished through the great recession and the best retailers/installers have survived and maintained 30%-40% margins. Business is won based on quality of product, installation and relationship.
  • Expansion: Sales can be improved with additional marketing budget and focus on high ROI campaigns. Current owner is investing ~$800 per month in Google Adwords and realizing a 200% ROI. This same campaign could be run on the Microsoft Bing network and Yahoo networks. An experienced salesperson could focus on residential redo prospects which are more and more available with people choosing to stay in their homes longer. Seller anticipates $300,000 in 2012 gross sales. April 2012 was highest month in trailing twelve month period.
  • Years Established: 1993
  • Employees: 1
  • Reason For Selling: True retirement
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