Succesfull Tanning Salon For Sale Chicago Suburbs, 2 Locations, 15 years

[Seven Seas Tan Spa's]

Profitable 2 location Chain salon for sale Mokena - Frankfort

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Selling my 2 profitable salons. Total of 40 beds, which have an estimated ff&e value of 350k. In business successfully for 10 years at Frankfort location and 5 at Mokena. Both locations are in busy centers with ample parking. Both have major traffic over 20k a day. Total marketing revamp in 2007. Up 130% ytd in 2008. 1800sq ft and 4000 sq ft at other location. I have another sales job and recently have come into more money. I want to sell this because becoming to hard to juggle busy salon and busy job. Over 17,000 names in database because have been in business 15 years combined and are a recognized brand name in the area as we were the first and are still here. Over 10 salons within 5 miles have shut down in last year. Would be open to selling one location with name.
Facilities: Newly redecorated salon at both locations, modern constant compliments. Lease up in March 1 2009 at Frankfort. June 09 for Mokena, option to renew. 4k sq ft and 2k sq at Mokena.
Competition: Oldest salon in area, no other survice, over 12 sdalons in area have closed in last 2 years since I took over.

Growth/Expansion: Add massage beds, room for it at FF store. Also expanding name as powehouse on south side to open new facilities. Support/Training: Anything you need to succeed within reason
Reason Selling: Focusing on sales job

Asking Price	$599,999	Inventory	$5,000*
Gross Income	$450,000	Real Estate
Cash Flow	$90,000	Year Established	1998
FF&E	$350,000*	Employees	10

* included in the asking price
** not included in the asking price

[JAS]

How do you evaluate the worth of a salon like this? I though the rule was three times cash flow, then adjust for the strength of the lease, location (intangibles) and the condition of the equipment.

[Din]

usually asking price would be estimated at about 10months of gross income out of a year.

If you gross $450k in a year (12months) for the 2 salons in total, then a fair asking price would be around $365- $380k for them.

Again, that would be a FAIR asking price, and then negotiations would begin from there.