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Broker Name:Ronald Cervelli
Broker Email:contactus@regalconsultants.com
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Children\'s Day Care/Pre-School Franchise
(Educational, Day Care)
Wayne County, MI
Listed Price: $ 99,000
Listing ID: DYCR560

Listing DetailsGross Revenue: $ 737,500
FFE: $ 250,000 (Included in Price)
Inventory: $ 1,500 (Included in Price)
Reason for Sale:

The owner has elected to retire after many years in this service industry.


Training & Support:

The seller will supply an appropriate transitional period and remain thirty days’ post-closing to assist the new operator.


OperationsYear Established: 2003
Days & Hours of Operation: Mon.-Fri. 6:30am-6:30pm
Non-owner Payroll: $ 30,000
Employees: 21
Absentee Owner: No
LocationLease Expire: 0000-00-00
Lease Security: 20000
Monthly Rent: $ 8,000
Square Footage: 10000
Facilities:

The day care facility is located minutes from various state highways and county roads for parent convenience. The center is in a huge commercial area with many independent company’s representing thousands of daily workers. The city has a population of thousands of residents including a huge volume of businesses. This general area consists of highly populated communities with continued demand for children services. The facility which is 10,000 square feet is in a modern attractive commercial building with all the required amenities. This day care has a professional image; private entrances and beautiful state of the art children’s play area. The center has various rooms specifically designed for separate and independent learning activity.


SummaryBusiness Description:

A wonderful opportunity to own this modern highly successful Children’s day care / Pre-School franchise center located in a wonderful area of Michigan. The center has a 2017 gross yearly income of $737,500. This franchise is recognized as the premier children’s day care center offering the highest quality service to the children it services. Current Enrollment is 72, Monthly Tuition is $945, Full Time Prepper $1,040, Full Time Infant through Twaddler $1,095). The center consists of a 10,000-square foot facility, with a state-of-the-art design to maximize it highest and best use. This business is licensed for 143 children and presently has seventy-two children enrolled. This Day Care center is presently owned by an onsite owner operator, employees a full-time manager of operations and a full staff of teachers and associates. The day care/preschool center offers a twelve-month program including a full summer session. The center also offers premier child care to children ages six weeks to five years, including after school care for children up to eight years of age. The day care center is a complete child development center with a dynamic, fun environment and represents an excellent investment opportunity. The business FF&E has an existing value of approximately $250,000, based on asset and licensing replacement costs. The center is operational five days per week with hours of operation from 6:30 am to 6:30 pm however can be extended based on the particular owner. The business has a long-term corporate lease which expires 2033/01/01 plus additional options. Lease terms as follows. Year 1: $8,000/month triple net. Year 2: $10,000/month triple net. Year 3: $14,000/month triple net. Year 4: $18,000/month triple net. Year 5 on: original lease terms. A copy of the lease will be available for review. Rent security of $20,000. Tenant responsible for real estate taxes of approximately $36,000 after the first year of the lease. The center is fully staffed with twenty-one experienced employees including various manager’s, monthly payroll is approximately $30,000. This modern attractive day care business opportunity has been valued / priced at $99,000 which is based on a percentage of the asset value. This reduced price represents a substantial reduction for this business opportunity. There is a $25,000 franchise transfer fee. Based on the selling price and net income the sale will evidence a consistent and dependable income return to purchaser. Please do not disturb business, this sale is absolutely confidential, the employees are Unaware of the pending sale, all viewings are by appointment only and photo does Not represent this business opportunity.


Competition:

As a franchise the center has a non-compete agreement with the company and due to the dynamics of the center no other similar competitive day care centers are in this general area. The present seller will also supply a non-compete agreement to purchaser.


Potential Growth:

This Day Care Pre-School center can continue to develop with onsite management and an improved and ongoing marketing campaign.


Financing/Terms:

N/A