I don't have too much opinion on Blimpies specifically. But first you should decide whether you want to work at the location fulltime, and what would be a fair total compensation if you do. Then consider what your annual return would be if you didn't invest in a franchise, but rather took a another job and invested your total investment in a market/bond portfolio earning a conservative 9-10% per year. Am I making sense? If you Blimpies won't pay you a decent salary AND you aren't profiting 10% per year on your invested capital, you taking a suckers bet on the franchise.
A lot of people selling just want to get out from underneath the obligations of the franchise, that is why most cannot recoup their total upfront investment.
It helps to look at the prices other Blimpies sell for. But here is some info for you to consider:
Take a look at this Blimpies resale:
http://www.businessesforsale.com/advert206138.aspxBelow is a copy:
-----------------------------
Franchise opportunity
Dallas Fort Worth - Fort Worth, Texas, United States
Financials Asking price: $40,000
Sales revenue: $161,000
Net profit: $30,000
Furniture/Fixtures value: $35,000
Inventory/Stock value: $1,000
Franchise terms10 percent of revenue reported manually by the owner is collected weekly by Blimpies.
Business descriptionBlimpies is a national franchise and this store has been in this location for 11 years. The current owner has owned it for the last 5 years. American Airlines, Sabre and now Bank One are the major employers in the area. In fact, Bank One just established a 2,500 person facility behind this location. Most of the people who work in this area are familiar with this Blimpies. This location tends to do particularly well with the lunch crowd, but has slower weekends. Their volume increases with the temperature. As it gets hotter outside, people turn away from the hot food at Wendy?s and Jack in Box and turn to subs and wraps. The low carb solutions help drive traffic.
Blimpies provides marketing materials every couple of months to its franchises. This owner distributes those flyers directly to the office buildings surrounding the location. This has proved effective and is very inexpensive.
Most of the equipment is 5 years old or less, except for the freezers. The equipment in the facility is worth approximately $35,000. The location is clean and neat and the d?cor is modern. Pictures are available for those interested.
The owner works in the store and is supported by 1 to 2 other employees between 11AM and 2PM, Monday through Friday. The store is open 10 AM to 7PM, seven days a week.
Blimpies provides 1 week of training in Atlanta, and this will be mandatory for any new owners. The existing owner will handle the transfer and associated paperwork. The buyer will need to provide a transfer fee of 5% to Blimpies directly.
Financially, the store is profitable, and business is picking up. The Bank One facility helps and American Airlines and Sabre employees are returning to work. In 2003, they grossed $140,000 with an estimated net income of $7,000. In 2002, they grossed $161,000 with net income of $6,000. In 2001, they grossed $219,000 with $48,000 in net income. In 2000, they grossed $193,000 with $31,000 in net income. These numbers come from the LLC tax returns. The owner took home additional salary and cash which is not documented. The register tapes are available and they show an average of $500/day in sales. The monthly costs of the business include: $2,000 for food, $1000 for employees, $1,353 lease, $500 electric, $40 garbage, $40 phone and $37 insurance. Blimpies collects 10% per week based on the sales reported by the owner. In other words, Blimpies does not have integrated cash registers at this store.
The owner works full time at American Airlines and needs a break from managing a job and the business. His family has invested in the hotel business and he wants to participate.
General informationYears established: 11
Employees: 3
Trading hours: 10 AM to 9 PM, seven days a week
Real Estate
Lease
Lease terms: $1353 per month. This includes water.
Location
This store is located in a strip center with 7-11 and some other small retailers near the DFW airport. Blimpies is a national franchise and this store has been in this location for 11 years. The current owner has owned it for the last 5 years. American Airlines, EDS, Sabre and now Bank One are the major employers in the area. In fact, Bank One just established a 2,500 person facility behind this location. Most of the people who work in this area are familiar with this Blimpies. This location tends to do particularly well with the lunch crowd, but has slower weekends. Their volume increases with the temperature. As it gets hotter outside, people turn away from the hot food at Wendy?s and Jack in Box and turn to subs and wraps. The low carb solutions help drive traffic.
Expansion potentialThe buyer could invest in more franshises.
Competition / MarketIn this area, Wendy's, Jack In the Box, 7-11, Subway, Chinese restaurant.
Support & trainingBlimpies requires new owners to participate in one week's training in Atlanta.
Reasons for sellingthe owner works full time at American Airlines and needs a break from managing a job and the business.
Financing availableThe owner will not finance, but this is bankable
-----------------------------------------------
Here is another Blimpies for sale:
Business Started: 2003
Gross: $315,000+
List Price: $190,000
Great local establishment at very busy intersection in one of Georgia's fastest growing counties. The site has been ranked in the top 10 of the state since opening in 2003.
Facilities: 1000+ sqft end cap in extremely busy strip mall with patio seating
----------------------------------------------
Here is a report that includes some Blimpie info:
http://www.worldfranchising.com/top100franchises_data.pdf----------------------------------------------
Here's another for sale ad I found:
Location: New York
Industry: Food and Beverage > Other Food and Beverage
Business Summary
FINALLY A BUSINESS REALLY PRICED TO SELL. ONLY 80,000 FOR THIS ESTABLISHED BLIMPIES!!! They are located on a very busy shopping street in the boroughs of New York City. The business is situated near many other National Retailers, a High School, as well as several large Apartment Buildings. TREMENDOUS Pedestrian Traffic. This Opportunity will not last for a more aggressive management team can easily propel the company s revenue and profits. Please refer to listing number 4057 when inquiring about this opportunity.
BizQuest ID: 743571
Seller ID: 4057
Financials
Asking Price: $80,000
Gross Revenue: $400,000
Cash Flow: $40,000
Inventory: $2,000 (Included in Asking Price)
FF&E: $125,000 (Included in Asking Price)
