Established Beauty & Wellness CenterListing: #AL00113
About this Business for sale in National Capital RegionEstablished Beauty & Wellness Center
This is one of 14 branches of which 2 are owned by this client. Owner is retaining the BGC branch where she lives and is selling only the Paranaque branch.
It has a floor area of around 86 sq.m. Owner spent over 1.5 M pesos to decorate the unit. It was opened Sept. 2018 so it is fairly new.
The Center offers the entire gamut of services from skincare, body contouring, Gluta V drip, slimming, whitening, laser hair removal and semi-permanent make up. The franchise covers other services such as permanent make up, manicure and massage. But the owner hasn't applied these services in the branch. So the 2 massage rooms are unused.
Despite this, it earned P700k in a month at its highest when owner was hands-on managing the branch. But ultimately the daily commute and traffic of travelling to the south from BGC took its toll on the owner so it ended up being half managed. So sales is down at present to P300k a month. The rent is about P64K a month only (P691/sqm) with a locked-in 5 year contract with the building owner. The Center has 4employees but owner let go of the on-call doctor. Same doctor can be summoned back if need be. Salaries and supplies plus rent and utilities total about P200k a month. So despite the present not so well managed situation, it was making P100k per month in profit (prior to the COVID-19 lockdown).
The buyer will retain/get the P300k rent deposit. There are no franchise/transfer fees to be paid if sold. Buyer has the option to continue or terminate the franchise agreement. So even at its minimal profit of P100K per month, return on investment (ROI) is around 35months. But if efficiently managed, recovery on investment can be as short as 7-8 months.
Reason for selling : Owner cannot devote her personal time to efficiently manage it. Otherwise it is a very profitable business venture.
Broker : Ed Pugeda |Email : firstname.lastname@example.org|Mobile : +63 995 775 6124
Broker : Lani Davies |Email : email@example.com|Mobile : +63 998 984 3324
*Profit: Sellers Discretionary Earnings, also known as EBPITD (Earnings Before Proprietors Compensation, Interest, Tax and Depreciation). This is the estimated total discretionary earnings (profit) for a business, usually based on historical trading.