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RECESSION RESISTANT NORTHERN CALIFORNIA MAIL CENTER FRANCHISE - SC2109


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RECESSION RESISTANT NORTHERN CALIFORNIA MAIL CENTER FRANCHISE - SC2109

 

Financial Information

  • Asking Price: $349,000
  • Cash Flow: $150,000
  • Gross Revenue: $350,000
  • Down Payment: $249,000
  • Financing: No
  • FFE (Included): $150,000
  • Inventory: $10,000

Business Location

  • Northern California

Business Description

This Northern California based Mail Center Franchise has been in operation for 3 years under current ownership and is a California Sub-Chapter S Corporation. They are very well established in Northern California and have a great reputation for providing mail center services. They provide full turnkey service, including Packing Materials and Supplies, Packing Services, Shipping with DHL, UPS, USPS and FedEx, Notary, Passport Photos, Copying, Faxing, Mailboxes, Office Supplies, Laminating, Live Scan Finger Printing, Binding, Gift Cards, etc. They can provide local, national, and international shipping services. Mail Centers have seen a strengthening in popularity over the past few years. With the ability to ship any way you like, and the versatility to purchase office supplies, have customized shipping, and deal with the large surging amount of Amazon returns, it is no wonder these types of franchise businesses are in high demand. The online shopping sector has grown exponentially over the past twenty years, helping to fuel the continued rise of mailing and shipping franchises. Since the start of the 2020’s, there’s been a 37% growth in business volume for mailing and shipping franchises. Today, more than 20 billion parcels are shipped around the United States annually, with parcel revenue rising by 29% to a staggering $171 Billion in 2020. So, parcel shopping is undoubtedly booming, partly from the American reliance on delivery purchases through Amazon and other online venues.
 
 
 

Market Outlook/Competition

This business has several repeat customers due to its longevity in operation, both local business and residents. They have a significant portion of mailboxes that provide a recurring revenue stream. They are centrally located in a busy and prominent business area. Growth can be obtained through increased marketing in the local market and with the addition of incremental business and personal services, especially print services. Growth can also be obtained by adding additional mailboxes. This business opened in January 2020 and was initially impacted by Covid during their ramp up period. They did not resume full operations until June 2021 and have been ramping ever since. Growth can also be obtained by increasing store hours (currently only operating Monday through Friday from 10am to 6pm).
 
 

Seller Financing Description

The Seller is willing to finance up to $100,000 of the purchase price over 3 years at 7% interest. The amount financed will depend upon the agreed upon price and quality of the Buyer.
 

Support & Training

The Seller is willing to train the new Owner for up to 2 weeks at 40 hours for week. Extensive training will be provided by the Franchisor. Additional training from the Seller is available at mutually agreed upon compensation from the Seller to the Buyer.
 
 

Reason for Selling

The reason for selling is the Seller would like to pursue other interests.
 

 

Detailed information

  • Year Established: 2020
  • Home-Based: No
  • Franchise: Yes
  • Relocatable: No
  • Required Licenses: 
  • Is Property Leased: Yes
  • Real Estate Included: No
  • Real Estate Available: N/A
  • Real Estate Value: N/A
  • Part-time Employees: N/A
  • Full-time Employees: 1
  • Building Size: 1300sq ft 
  • Monthly Rent: $2,500

 

Broker: ProEquity Asset Management Corporation License ID: 01870526

 
 


Listed By: Adriana Sargent

Background information

Reference:

SC2109

Year established:

2020

Reason selling:

The reason for selling is Seller is looking to pursue other interests.

Operations

Employees:

Part-time Employees: N/A Full-time Employees: 1

Equipment:

FFE (Included): $150,000

Inventory:

Inventory: $10,000

Premises

Facility:

Is Property Leased: Yes Real Estate Included: No Real Estate Available: N/A

Square footage:

1300sq ft 

Rent and lease terms:

Building Size: 1300sq ft  Monthly Rent: $2,500

Location:

Northern California

Opportunities

Growth:

Growth can be obtained through increased marketing in the local market and with the addition of incremental business and personal services, especially print services. Growth can also be obtained by adding additional mailboxes. This business opened in January 2020 and was initially impacted by Covid during their ramp up period. They did not resume full operations until June 2021 and have been ramping ever since. Growth can also be obtained by increasing store hours (currently only operating Monday through Friday from 10am to 6pm).

Market:

This business has several repeat customers due to its longevity in operation, both local business and residents. They have a significant portion of mailboxes that provide a recurring revenue stream. They are centrally located in a busy and prominent business area.

Price and terms

Price:

$349,000

Down payment:

$249,000

Financing:

The Seller is willing to finance up to $100,000 of the purchase price over 3 years at 7% interest. The amount financed will depend upon the agreed upon price and quality of the Buyer.

Training:

The Seller is willing to train the new Owner for up to 2 weeks at 40 hours for week. Extensive training will be provided by the Franchisor. Additional training from the Seller is available at mutually agreed upon compensation from the Seller to the Buyer.