Industry Description

Indoor Tanning

SIC

7299 - 44

Days Open

8:30 ­ 8:30 MF; 8-4; 9-2

Year Established

1990

Hours of Operation

Now Open 72 Hrs./wk

Years Owned

Since 12/03

Full-time Employees

0

Part-time Employees

5

Other Notes

Hours/wk by Owner

0

Owners Duties

None

Skills / Licenses Req¹d

None

Training Offered / Cost

2 Wks. @ 20 hrs.

Non-Compete Terms

5 Yrs. 5 Miles

Exec. Summary

Well established salon in high traffic mall that has many day spa type

Businesses.  A gym next door, and a Starbucks. 

Lease / Bldg. Info.

Monthly Rent

$4,004 incl. $700 CAM

Lease Commenced

12/03

Deposit

Lease Expires

12/08

Term & Option

5 Yrs / 5 Yrs

Bldg./Area Description

Busy Mall w/Starbucks

Square Footage

1,100

Seats, Pkg, Zoning, etc.

Gym and Starbucks are located next door; they are traffic draws but they also

May make parking difficult.

Reason for Sale

Personal Reasons

Financial Summary

Current Yr. Annual

2003 / Owner to Prove

2002 / Owner to Prove

Gross Revenue

$202,774  Annual Est.

(Avg. below Projections)

COGS

$48,552

Former Owner¹s

Former Owner¹s

Rent / CAM

$48,000 Inc. CAM

Data not Available

Data not Available

Payroll

$24,000

Net Profit (before tax)

$65,717 (Owner 0 hrs.)

(Avg. Projections below)

Discretionary Cash

$80,512 (Owner @50 hr)

(Avg. Projections below)

Expense Breakdown

Included in Sale

Assets

Liabilities

FF&E Included

$159,850 (Owner Est.)

Lease Obligations

$0

Inventory Included

$500

Debt Included

$0

Other Assets Included

Other Liabilities

$0

Working Capital (not incl)

Return on Sale Price

36% / 44%

Asking Price

$225,000

Owner Financing/Terms

OWC w/30% Down

Earnest Money Dep.

$5,000

Down Payment

$50,000

Opportunity Summary

Headline

Newport Beach Salon For Sale - Owner will Finance

Summary

The current owner of this 15 year old salon purchased it because of its fantastic potential; a personal situation has now forced him to sell.  His loss can be your gain, as the salon is turnkey ready for an absentee owner.  A full time owner, however, can maximize profitability in this very high class salon.  The salon is located next to a high end gym, Starbucks, and many day spa / beauty oriented businesses off of a major street and next to the highway.  Annualized revenues are projected at $202.8k, with net profits for a non-working owner at $65.7k ($80.5k with a working owner).  The owner is so confident of the salon¹s success, he is willing to finance $150k over 3 years!

Facilities / Assets

Included in this 1,100 square foot facility are 7 beds:  3 completely refurbished and upgraded 1990s Ultrabronze 818 30 minute beds w/new glass, paint and parts; 2 2003 Alphsun 20 minute beds, 1 2004 Saturn Stand up 12 minute bed, and 1 2004 Miracle Mist UV Free Spray Booth.  Additional assets include complete build out, décor, computer system, etc. 

Competition

Competition is deeded to be "moderate" for Newport Beach

Growth Potential

The current owner acquired this salon in 1/04.  The former owners "neglected" the salon - they didn't maintain steady hours/days of operation, were closed Sun/Mon; didn't offer retail products, etc.  The new owner, who operates another much larger salon, purchased it because of its great potential.  Thus far he has commenced advertising and promoting the salon, extending its hours, refurbishing all equipment and adding new equipment, etc. 

Other

This owner is very knowledgeable and is willing to fully train - this is a great starter salon.  At present, he devotes 0 time to the salon so discretionary revenues can increase accordingly.  At present, only 4 months of actual financials are available.