Multiple Franchisee Locations Opportunities – 12 Distinct Markets
$280M Revenue, $28M EBITDA
A corporation in the lease-to-own industry is selling stores in 12 distinct markets and converting them from corporate operations to franchisee locations.
- 350 available stores, with the number of stores per market ranging from 50 to 12
- Average $800K revenue per store location, adjusted EBITDA margins between 10-12%
- Typical store serves 400+ customers annually
- Locations can be acquired by individual market, multiple markets, or the entire package
Lease-to-Own Market overview
The unique lease-to-own industry started the 1970s, and today sales approach $12.5 billion. It serves nearly 7.5 million households, with approximately 11,200 locations in North America. The lease-to-own model allows consumers to acquire household products without incurring debt or jeopardizing the family’s credit. Merchandize can be returned at any time, for any reason, without penalty. Stores offer a wide variety of products, including furniture, electronics, major appliances, computers, wheels and tires, musical instruments, and jewelry.
The seller has decided to divest from corporate operations in 12 of its US markets, which are all large metropolitan areas. The seller is currently prepared to have conversations regarding five of markets, with the other seven markets available at the end of July. The stores are being valued on adjusted EBITDA plus the current rental portfolio and inventory. Adjustments to EBITDA include the fully loaded cost of adding district managers (assumption is one manager per 10 stores) and for the estimated franchisee fees. Valuations are consistent with industry norms.
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