The Veld Group Listings: Elegant Encino Tan Salon

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Elegant Encino Tan Salon

Industry Description	Tan Salon	SIC	7299 - 44
Days Open	7 Days 8:30 ≠ 10 M-F;	Year Established	2001
Hours of Operation	8-7 Sat; 10 ≠ 5 Sun.	Years Owned	2001
Full-time Employees	1 Manager	Part-time Employees	4
Other Notes
Hours/wk by Owner	0 ≠ Non Operational	Owners Duties	Minimal Oversight
Skills / Licenses Reqπd	None	Training Offered / Cost	4 wks @ 40 hrs/wk
Non-Compete Terms	5 Yrs. / 10 Miles

Exec. Summary	This facility is at the high end of the tan market and caters to many celebrities.
This salon broke even in the past due to high equipment leases; now it is poised for stellar profitability.
Lease / Bldg. Info.	High End Mall	Monthly Rent	$5,895
Lease Commenced	02/01	Deposit	Varies
Lease Expires	02/06	Term & Option	5 Yr. Option
Bldg./Area Description	High Traffic Malls	Square Footage	2,000 sq. ft.
Seats, Pkg, Zoning, etc.	This facility is located in a high end mall with day spa facilities and a busy gym.

Reason for Sale	Personal reasons.
Financial Summary	Current Yr. Annual	2003 / Owner to Prove	2002 / Owner to Prove
Gross Revenue	$200,000 Approx.	$170,000	$153,000
COGS		$7,000	$6,000
Rent / CAM		$70,740	$70,740
Payroll
Net Profit (before tax)	TBD (non-working owner)	TBD (non-working owner)	$0 (non-working owner)
Discretionary Cash	TBD (non-working owner)	TBD (non-working owner)	$0 (non-working owner)

Expense Breakdown	Due to equip. leases, firm will benefit $50k in π05; $66k in π06; $77k in å07

Included in Sale	Assets		Liabilities
FF&E Included	$140,000	Lease Obligations	$0
Inventory Included	$1,500	Debt Included	$0
Other Assets Included	$0	Other Liabilities	$0
Working Capital (not incl)	TBD	Return on Sale Price

Asking Price	$350,000	Owner Financing/Terms	Owner Will Carry
Earnest Money Dep.	$10,000	Down Payment	$100,000

Opportunity Summary

Headline

Elegant Encino Tan Salon

Summary

This is a very classy tan salon located in an ultra chic mall filled with high end Los Angeles consumers. The salon caters to multiple "A-List" celebrities and compliments it neighbors, primarily day spa facilities and a high traffic athletic club, very well. Located off of a main thoroughfare, the facility offers clients excellent access, and a stellar tanning experience. With the utmost attention to detail provided by the absentee owner, this salon comes complete with 12 oversize rooms housing 11 beds, a new spray unit, and a stand up unit. Further, the salon has a ultra modern $30,000 surveillance system allowing an absentee owner to monitor traffic, employees, and computer entries from any offsite location. Due to the high build out and equipment cost, this salon is poised to become highly profitable as equipment leases will soon expire and marketing efforts are beginning to pay dividends (i.e. an additional $50k in '05, $66k in '06, $77k in '07).

Facilities / Assets

$140,0000 worth of Tropical Rayz Tanning Beds (11 in total), 1 Super-Cyclone Stand-Up unit, and a new Magic Tan Spray booth are all included in the sale. In addition, the owner has installed a $30,000 surveillance system allowing for offsite activity and computer monitoring, and has over $100,000 invested in the salon's build out.

Competition

Competition is deemed to be high in the San Fernando Valley, however, this upscale salon has few rivals in the area.

Growth Potential

This firm operates 11 beds, 1 spray unit and 1 stand-up bed out of 12 elegantly designed, oversized rooms. New tenants, however, may wish to add day spa services (authorized by the lease), or any such lucrative services that this mallπs high end clientele may desire. Further, the salon is set up such that one third of its floor space may be sublet to another tenant, increasing throughput while decreasing rent.

Other

The current owner is agreeable to carrying secured long term financing with a minimum of $100,000 down.

8721 West Sunset Blvd. • Suite 103 • Los Angeles, CA 90069 ph 310•652•VELD {8353} fx 310•652•8363 toll free 866•600• 8353 {VELD}
contact@theveldgroup.com

Opportunity Summary
Headline	Elegant Encino Tan Salon
Summary	This is a very classy tan salon located in an ultra chic mall filled with high end Los Angeles consumers. The salon caters to multiple "A-List" celebrities and compliments it neighbors, primarily day spa facilities and a high traffic athletic club, very well. Located off of a main thoroughfare, the facility offers clients excellent access, and a stellar tanning experience. With the utmost attention to detail provided by the absentee owner, this salon comes complete with 12 oversize rooms housing 11 beds, a new spray unit, and a stand up unit. Further, the salon has a ultra modern $30,000 surveillance system allowing an absentee owner to monitor traffic, employees, and computer entries from any offsite location. Due to the high build out and equipment cost, this salon is poised to become highly profitable as equipment leases will soon expire and marketing efforts are beginning to pay dividends (i.e. an additional $50k in '05, $66k in '06, $77k in '07).
Facilities / Assets	$140,0000 worth of Tropical Rayz Tanning Beds (11 in total), 1 Super-Cyclone Stand-Up unit, and a new Magic Tan Spray booth are all included in the sale. In addition, the owner has installed a $30,000 surveillance system allowing for offsite activity and computer monitoring, and has over $100,000 invested in the salon's build out.
Competition	Competition is deemed to be high in the San Fernando Valley, however, this upscale salon has few rivals in the area.
Growth Potential	This firm operates 11 beds, 1 spray unit and 1 stand-up bed out of 12 elegantly designed, oversized rooms. New tenants, however, may wish to add day spa services (authorized by the lease), or any such lucrative services that this mallπs high end clientele may desire. Further, the salon is set up such that one third of its floor space may be sublet to another tenant, increasing throughput while decreasing rent.
Other	The current owner is agreeable to carrying secured long term financing with a minimum of $100,000 down.