Multi-Unit Franchise Boba Business (4 locations and CO area developer)

intermediary profile

September 02, 2024

by an intermediary from University of Pennsylvania - The Wharton School in Denver, CO, USA

The franchisor is a global leader in boba teas with locations worldwide across several continents. The brand has a loyal customer base focusing on young people looking for trendy and innovative drinks that will enhance their lifestyle and mood. The seller has 4 operating locations and 1 sub-franchisee spread across the Denver metro area. The Company is owned by absentee owners who are focused on other business ventures. The straightforward operations are managed by managers/shift leads. As an area developer, the Company attracts new franchisees, provides site selection, build-out support, and imports the product and supplies that are sold in the Company’s stores and their sub-franchisees. There are multiple lucrative revenue streams: 1) Signing, 2) Training, 3) Logistics services, 4) Store build-out1, 5) Royalties, 6) Product/supplies sales. Revenue for the Company has grown at a CAGR of 41.0% from###-###-#### . The Denver metro population in 2024 is 2,963,000 and is considered as one of the fastest-growing areas in the US, with a population growth of 4.8% over the last five years###-###-#### The Denver metro is ranked #18 in population in the US. Transaction Objective: Ownership intends to sell 100% of the operations, including the 4 stores and the Colorado area development rights along with the product supply operation to focus on unrelated business ventures. SBA pre-qualified with seller financing, if required to complete a transaction. Projections post-closing (Revenue/SDE): Yr 1: $1,700,701 / 464,395 Yr 2: $2,137,173 / 660,947 Yr 3: $2,355,638 / 770,670 Detailed confidential information memorandum ("CIM") available for qualified buyers upon signing NDA and completing buyer profile.
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commentor profile
Reply by a professional
from Taylor University in Parker, CO, USA
Thanks for the tag Luke. Boris, we can serve as an operational efficiency partner to whoever acquires the company through logistics/parcel cost reduction. Will also let you know if I think of a buyer. Happy to meet up if we can serve any of your portfolio companies, I'm in Parker, looks like two locations are in my area.
commentor profile
Reply by an intermediary
from University of Pennsylvania in Denver, CO, USA
^redacted‌ royalty is 5% on stores that opened a few years ago and 7% on more recent ones. The good news is as the area developer you get 4% on the sub franchisees.
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