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| Newly Established, Covina Salon with Nearby Sister Location | |
| Industry Description |
Indoor Tanning |
SIC |
7299 |
| Days Open |
7 Day/68 Hrs. 98 M-TR |
Year Established |
11/03 |
| Hours of Operation |
9-7 F, Sat 96; 10-3 Sun |
Years Owned |
Since 11/03 |
| Full-time Employees |
0 |
Part-time Employees |
2 |
| Other Notes |
Working Owner increases profitability by $7 / hr. 50 hrs/wk = + $18.2k net |
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| Hours/wk by Owner(s) |
68 |
Owners Duties |
Oversight/Training |
| Skills / Licenses Req¹d |
None |
Training Offered / Cost |
3 Wks. @ 40 hrs. |
| Non-Compete Terms |
5 Yrs. 5 Miles |
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| Exec. Summary |
This is a newly established salon with very high growth - 1,328 clients in 5 months! |
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| It mirrors its sister salon in La Verne, and is anticipated to have similar performance. Both salons are for sale. |
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| Lease / Bldg. Info. |
Very Busy Mall |
Monthly Rent |
$2,025 + $300 CAM |
| Lease Commenced |
11/03 |
Deposit |
TBD |
| Lease Expires |
11/08 |
Term & Option |
5 Yr; 5 Yr option |
| Bldg./Area Description |
Commercial/Residential |
Square Footage |
1,500 |
| Seats, Pkg, Zoning, etc. |
Salon is located in a very busy shopping mall with major anchor tenants. |
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| There is plenty of customer parking. Four high schools are nearby. |
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| Reason for Sale |
Personal Reasons |
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| Financial Summary |
Projected Annual |
2003 / Owner to Prove |
2002 / Owner to Prove |
| Gross Revenue |
$177,000 Projected. |
Salon Opened 11/03 |
Salon Opened 11/03 |
| COGS |
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| Rent / CAM |
$27,900 |
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| Payroll |
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| Net Profit (before tax) |
$58,000 (Owner 0 hrs) |
Projected |
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| Discretionary Cash |
$78,000(Owner 50 hrs) |
Projected |
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| Expense Breakdown |
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| Included in Sale |
Assets |
Liabilities |
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| FF&E Included |
$195,000 |
Lease Obligations (Beds) |
$962/mo (~ 1.5 yrs) |
| Inventory Included |
$2,500 |
Debt Included |
$0 |
| Other Assets Included |
Other Liabilities |
$0 |
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| Working Capital (not incl) |
Return on Sale Price |
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| Asking Price |
$225,000 |
Owner Financing/Terms |
OWC over $200k @ 7% |
| Earnest Money Dep. |
$10,000 |
Down Payment |
$200,000 |
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Opportunity Summary |
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Headline |
New Established, High Growth Covina Tan Salon with Nearby Sister Location |
| Summary |
This beautiful indoor tanning facility was established in Covina in 11/03 and has experience tremendous growth in its infancy. Attention was put into every detail of the salon to create a modern, elegant tanning atmosphere. Since inception, the salon has already seen over 1,300 clients, with new members joining daily. |
| Facilities / Assets |
The elegant salon boasts 11 units 9 new beds, 1 - 2000 Sun Capsule Stand-up unit, and a Mystic Spray Tan unit. The other units include 6 Sundash 232 beds, 2 Sundash 240 beds, and 1 high end ($29,000+) Ergoline Avantegarde 600 12 minute bed. Overall bed value is nearly $120,000, with approximately $80,000 put into the build-out. The 1,500 square foot facility has a very favorable lease of $2,325 per month (including CAM), with a 5 year option. |
| Competition |
Competition is deemed "moderate" in the area, however, this salon is one of the nicest around. With a better established nearby (though not competing) sister salon for sale as well, a new owner can virtually "own" the area. |
| Growth Potential |
Via ownership of both locations, a new owner can capitalize on marketing savings and bed and membership interchangeability. |
| Other |
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