AAMCO Franchise, President’s Award Winner. SBA Approved

South Bay Area AAMCO Center available first time to general market

Specifications

 Price:
$275,000
Revenue:
$695,380 (4-Year Avg)
Cash Flow:
$94,288 (4-Year Avg)
Location:
South SF Bay Area
RO Per Week:
21 Average
 Average RO:
$813
 Employees:
2 FT 1 PT Tech, 1 Writer
Lease:
$8,727.56/mo. including CAM
Goodwill: 14 years operating same location, 4.5 star reviews
Year Established:  2008 under current ownership
Services
Offered: 		 Box or rebuilt transmissions, air conditioning, fluid changes, axil and driveshaft, bracket and mount repair, general tune up, air and belt replacement
Furniture
Fixtures &
Equipment: 		 Main equipment includes 10,000LB lift, 14,000 LB lift, 14,000 LB column lift, 20-ton hydraulic press, fuel injection system, A/C recycling system, 7.5 HP air compressor with stations on lifts, battery charging and testing, autel elite scanner, parts cleaner, radiator flush unit, transmission flush unit, bench grinders, engine hangers, separate machine area
Truck Service:  Up to 14,000 lbs
Clients:  90% Retail; 10% Fleet
Facility
& Lease: 		 4,792 square feet of industrial/commercia occupancy with non-exclusive common area rights, security deposit $8,727. Base rent $8728 plus $767 NNN
Personnel:  2 FT Technicians, 1 FT Owner/Manager, 1 PT Working Family Member & 1 service writer as family member who will stay.
Software Used:  AAMCO proprietary software, Mitchel

Easily accessible location in an automotive repair focused block that has complimentary business as neighbors. Boasting a clean well kept shop, this AAMCO has been run by the same family since 2008. Customer reviews frequently state how honest the owner is and that the team is professional and attentive. The honesty and down to earth approach has earned this location a very dedicated and appreciative customer base.

Franchise information:

  • Security deposit $5,000*
  • Transfer fee $6,000
  • License fee $39,500: $20,000 upon acceptance, $19,500 at signing
  • Term is 15 years, plus a 15-year option
  • Non-compete of seller: 2 years, 10 miles, and no AAMCO franchise
  • Training included: 145 hours classroom, 240 hours hands-on**
  • Insurance coverage: $1,000,000 per occurrence
  • Lease rider
  • Franchise fees: 7.5% weekly on gross sales
  • Advertising fees: 4% of gross sales per week plus other options for local, $150.00 per month national ad fund

* Security Deposit is refundable if offer is declined by franchisor
** Cost of lodging & travel is not covered by the franchisor or the seller

Value Proposition

  • 50 years of established franchise reputation
  • Exceptional customer reviews of 4.5 stars
  • Mostly crate transmissions used
  • Priced below market for quick sale – Retirement
  • Possible cash on cash return rate in 4 months
  • Sales on track to beat 2021
  • Experienced team of technicians
  • Buyer to replace retiring seller as manager/owner
  • Recommended to hire part time assistant
  • B.A.R license required

Revenue Breakdown

Financial Highlights

  • Listing Price: $275,000 plus invintory
  • 2019 Cashflow (SDE): $140,265 20.29%
  • 2019 Sales $691,369
  • 16.8% Sales dip in 2020, due to COVID
  • 2021 sales exceeded 2019
  • Suggested working capital: $30,000
  • Inventory (Mar 2021): $15,000
  • 2022 Sales forcast to exceed 2021
  • Franchise transfer fee $39,500
  • Franchise fees 7.5% of gross recipts
  • Advertizing fees 5% of gross recipt

Cashflow Analysis

Asking Price

The asking price is determined using a cash flow and asset methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.

For this business, a four-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 3x, based on historical sales of AAMCO’s of similar sales and SDE.

Funding Example

Purchase Price: $275,000

20% Buyer Down Payment

$55,000

Buyer’s Equity

80% Bank Loan

$220,000

10-Yearterm at a rate of 9.75% = Monthly loan payment of $2,878

  • 4-Year Average Cash Flow SDE $94,288
  • Annual Payment to Bank: $34,536
  • Net Profit (After Expenses and loan payment): $59,752

* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.