Our client has engaged us to assist them in the process of selling some Assets of their business. The client is the owner of the Calgary area of a Franchise that distributes free weekly publications to restaurants, coffee shops and hotels. In addition to ads for local businesses, it contains news stories, jokes, trivia and horoscopes.
This business began in Winnipeg Manitoba, in 1988. And the founder began franchising in 1994. The Calgary branch has been running for 12 Years and is getting ready to grow as we exit from the current pandemic. It is also seeking its next publisher in the Calgary area. This business is a great deal for a Buyer with an interest in a smart, local business. Future growth opportunities include expanding the business to become digital, app creation and a deeper reach into the area.
This business offers a unique opportunity of exclusive advertising. Once a customer of this business reserves their place of marketing in the publication, they have the assurance of being the only business of their industry in that edition. With 16 editions in Calgary, as well as High River, Okotoks, Strathmore and Chestermere, advertisers can micro-target their customers and become the exclusive provider in their industry.
The one-page weekly publication is built strongly, it includes:
This 12-year-old brand is well-established in a dense market area, with high recognition and an outstanding reputation. The ideal buyer for this company would be a creative, sales savvy person who is highly motivated to see growth in the business.
Franchise Fees – If purchased directly from the Head Office, franchise fees are equal to $6,000 per edition plus a one-time training fee of $2,500.00. 20 franchises @ $6,000 each from Head Office = $120,000.
Royalty Fees – $25 per week, per edition due to Head Office.
Sale Type – Asset Sale
Asking Price – The asking price includes the Purchaser taking on obligations of current advertisers with no adjustments to the purchase price. (A buyer will also receive the recurring revenue from all existing clients).
Benefits for a New Owner:
This a great opportunity for a sales savvy person. Everything is in place, including the newspaper stands in hundreds of locations. A Buyer would also benefit from the support of the Seller.