Exclusive Listing Presentation | Real East and Franchise For Sale - LoopNet
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Exclusive Listing Presentation | Real East and Franchise For Sale
Kentucky Fried Chicken located at 433 W. Perkins Ave., Sandusky, Ohio 44870 (Erie County)
Anthony J. Varone, MBA
Managing Director
D: (614) 304-1641
F: (614) 304-2184
avarone@bhprc.com
121 Mill St., Suite 128
Gahanna, OH 43230
Full Service Commercial Real Estate Investment and Business Brokerage
Berkshire Hathaway HomeServices Professional Realty Important Notices, Disclaimers, and Disclosures BERKSHIRE HATHAWAY HOMESERVICES PROFESSIONAL REALTY: BLUE ROCK SELECT, LLC (REC.2011002366), AN OHIO LIMITED LIABILITY COMPANY, DOING BUSINESS AS PROFESSIONAL REALTY AND OPERATING UNDER THE TRADE NAME BERKSHIRE HATHAWAY HOMESERVICES PROFESSIONAL REALTY (COLLECTIVELY HEREIN, “BHHS”), HAS BEEN RETAINED AS THE EXCLUSIVE ADVISOR AND BROKER TO THE OWNER(S) OF RECORD AND ITS PRINCIPALS, DIRECTORS, OFFICERS, AFFILIATES, SUCCESSORS, ASISGNS AND OTHER RELATED PARTIES / ENTITIES (HEREIN, “SELLER”) FOR THE OFFERING DESCRIBED HEREIN. CONFIDENTIAL, PRIVILEGED, PROPRIETARY AND SUBJECT TO CHANGE: THIS PRESENTATION, DISCUSSIONS, AND OTHER MATERIALS DELIVERED IN CONNECTION HEREWITH, WHETHER BEING DELIVERED ELECTRONICALLY, TELEPHONICALLY, HARD COPY, VERBALLY, OR IN ANOTHER FORMAT (COLLECTIVELY HEREIN, THE “CONFIDENTIAL INFORMATION”) ARE CONFIDENTIAL, PRIVILEGED, PROPRIETARY, AND SUBJECT TO CHANGE WITHOUT NOTICE. THE CONFIDENTIAL INFORMATION HAS BEEN PROVIDED IN CONFIDENCE WITH THE UNDERSTANDING THAT THE RECIPIENT WILL NOT DISCLOSE, COPY, DISSEMINATE, DISTRIBUTE OR USE THE CONFIDENTIAL INFORMATION OTHER THAN FOR THE INTENDED USE. IF THAT IS NOT THE CASE, THE RECIPIENT SHOULD PROMPTLY RETURN THE CONFIDENTIAL INFORMATION. IF THE CONFIDENTIAL INFORMATION WAS RECEIVED IN ERROR, PLEASE NOTIFY THE SENDER IMMEDIATELY FOR RETURN AND DESTRUCTION INSTRUCTIONS. RELIABILITY OF INFORMATION DISCLAIMER: THE CONFIRMATION INFORMATION WAS OBTAINED FROM SOURCES BELIEVED RELIABLE. WHILE BHHS AND SELLER DO NOT DOUBT ITS ACCURACY, NEITHER HAVE VERIFIED IT AND NEITHER MAKE ANY REPRESENTATION OR WARRANTY, EXPRESSED OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF THE CONFIDENTIAL INFOMRAITON WITHOUT EXCEPTION OR LIMITATION. IT IS THE RESPONSIBILITY OF THE RECIPIENT TO INDEPENDENTLY CONFIRM ITS ACCURACY AND COMPLETENESS. ANY PROJECTIONS, OPINIONS, ASSUMPTIONS, OR ESTIMATES USED ARE FOR EXAMPLE ONLY AND DO NOT REPRESENT, GUARANTEE, OR WARRANT CURRENT OR FUTURE PERFORMANCE. THE VALUE OF ANY INVESTMENT DEPENDS ON TAX AND OTHER FACTORS, WHICH SHOULD BE EVALUATED BY TAX, FINANCIAL AND LEGAL ADVISORS OF THE RECIPIENT. THE RECIPIENT SHOULD CONDUCT A CAREFUL AND INDEPENDENT INVESTIGATION OF THE CONFIDENTIAL INFORMATION FOR ACCURACY AND COMPLETENESS. PROPERTY TOURS AND OFFERS: NO PROPERTY TOURS OR CONTACT WITH THE SELLER OR STAFF ARE TO BE CONDUCTED WITHOUT THE EXPRESS PRIOR WRITTEN APPROVAL OF THE BROKER’S EXCLUSIVE LISTING AGENT, ANTHONY J. VARONE. BROKER AND SELLER RESERVE THE RIGHT, IN THEIR SOLE DISCRETION, TO REJECT ANY EXPRESSION OF INTEREST OR OFFERS AND TO TERMINATE DISCUSSIONS AT ANY TIME WITHOUT NOTICE, WITHOUT EXCEPTION OR LIMITATION. THE CONFIDENTIAL INFORMATION IS NOT AN OFFER TO SELL, BUY, AND OR LEASE. ALL PROSPECTIVES PURCHASERS AGREE TO ABIDE BY ALL OFFERING PROCEDURES AND COMMUNICATIONS POLICIES WITHOUT LIMITATION OR EXCEPTION. OPINION OF VALUE DISCLAIMER: ANY OPINION OF VALUE IS AN OPINION AND NOT A STATEMENT OF FACT. BHHS IS A REAL ESTATE BROKERAGE AND NOT AN APPRAISAL FIRM, ACCOUNTING FIRM, ENGINEERING FIRM, CONSTRUCTION FIRM, FINANCE COMPANY, AND OR ANY TYPE OF SPECIALTY VALUATION FIRM. ANY OPINION OF VALUE HAS BEEN DEVELOPED BASED ON MARKET TRENDS, PROPERTY(S) CONDITION, AND AVAILABLE INFORMATION AT THE TIME THE OPINION WAS DERIVED. MARKET TRENDS, PROPERTY(S) CONDITION, AND AVAILABLE INFORMATION CAN CHANGE OVER TIME AND RECIPIENT IS RESPONSIBLE FOR RESEARCHING AND ACCOUNTING FOR ANY SUCH CHANGES. IF BHHS HAS FORMULATED AN OPINION OF VALUE, IT IS ON A BEST EFFORTS BASIS AND RECIPIENT AGREES TO HOLD BHHS, ITS AFFILIATES, AGENTS, BROKERS, PRINCIPALS, AND OTHER RELATED PARTIES HARMLESS AND INDEMNIFY BHHS FROM ANY LOSSES THAT MAY ARISE FROM USE OF ANY OPINION OF VALUE AND THE CONFIDENTIAL INFORMATION. | Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 1
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County)
Offering Price, Terms, and Procedures
OFFERING PRICE: $2,250,000
*Note: Offering Price includes Real Estate and Business (Franchise)
REAL ESTATE SELLER: Ned C. Hoelzer, a single individual
REAL ESTATE LOCATION: 433 W. Perkins Ave., Sandusky, Ohio 44870 (Erie County)
Parcels 57-03474.000, 57-03473.000, 57-04973.001
FRANCHISE SELLER: Twin Cedars, Inc., an Ohio S corporation; doing business as Kentucky Fried Chicken of Sandusky
ACCESS TO FINANCIALS: Prospective purchasers shall be granted access to operating financials and other available data, at Seller’s sole discretion,
during due diligence after execution of a confidentiality agreement.
OFFERING PROCEDURES
Seller will consider all aspects of offers; therefore, prospective purchasers are encouraged to include resumes/management biographies, track record,
transaction references and banking/investor references. Prospective purchaser’s offers should include at minimum the following information:
▪ Purchase price, including evidence of financial ability to complete this transaction;
▪ All offers must provide Seller with the option to allocate all or a portion of sale toward a 1031 Tax Deferred Exchange;
▪ Material terms and conditions of real estate purchase;
▪ Material terms and conditions of franchise purchase;
▪ Any subsequent due diligence required to complete underwriting and consummate a transaction;
▪ Timeline of events detailing activities and deadlines including transaction completion date;
▪ Detailed information of beneficial owners for prospective purchasers;
▪ Complete contact information for communications and notices (including names, addresses, phones, faxes, etc.);
▪ All offer must be returned with the Agency Disclosure Statement completed.
Important: All offers must be submitted via email to Anthony J. Varone at avarone@bhprc.com
| Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 2
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County)
Investment Overview - Top Performing Single-Store Franchise in Great Lakes Region
Opportunity to purchase one of the best performing single-store Kentucky Fried Chicken franchise (real estate and business) in the
network. This KFC location has been owned by the same franchisee since 1981. Sales growth is driven by an experienced
management team, excellent location and visibility, and the quality of food and service.
▪ The General Manager has operated this location since 1983.
▪ The original building was demolished and rebuilt in 1995.
▪ Property in excellent condition with no deferred maintenance.
▪ All new digital menus and drive-through signage installed in July 2018.
▪ Current franchise agreement through May 2020; at which point, a store remodel (estimated to be $150,000) will be required to
extend franchise agreement for an additional 10 years.
Investment Highlights
▪ 3 Parcels Consisting of 0.59 Acres
▪ 1,800 Square Feet Building
▪ 3.8% - 2018 Revenue Growth (Estimated)
▪ 2.1% - 2017 Revenue Growth
▪ 15.4% - 2016 Revenue Growth
▪ 5.1% - 2015 Revenue Growth
▪ 10,830 Average Monthly Transactions
▪ 63% Drive-Thru Transactions
▪ 8% Eat-In Transactions
▪ 29% Eat-Out Transactions
▪ 21,797 Average Daily Traffic Counts
▪ 4.0% Average Daily Traffic Count Growth
▪ 9+ Million Trips to Area from Tourism
| Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 3
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County)
Investment Overview - Top Performing Single-Store Franchise in Great Lakes Region
2018 Est. 2017 Est. 2016 Actual 2015 Actual 2014 Actual
Gross Revenue Annual Growth Rate 3.8% 2.1% 15.4% 5.1% 0.3%
*Note: Includes all food and beverage revenue from all sources (Drive-Through, Dine-In, Carry-Out, and Catering).
COGS as a % of Gross Revenue 39.9% 39.9% 39.6% 37.8% 38.8%
*Note: Includes all coupons, discounts, sales taxes, food purchases, inventories, packaging, and other supplies to generate food and beverage gross revenue.
Gross Profit Annual Growth Rate 3.8% 1.5% 12.1% 6.8% 4.2%
*Note: Gross Profit available to pay SG&A and other Operating Expenses (including Franchise Royalties).
Annual Drink Rebate as a % of Gross Revenue 1.9% 1.9% 1.7% 1.7% 2.3%
*Note: Annual Drink Rebate is calculated on a trailing twelve month drink sales and paid back to store in a one-time payment each calendar year.
IMPORTANT: Full Access to Financial Data will be provided upon completion and return of the Buyer Registration, Non-Disclosure, and Confidentiality Agreement.
Select Property Fixtures and Equipment Select Operating Facts and Highlights
▪ New (2018) Digital Menus and Drive-Through Signage ▪ Catering Designated Store
▪ 2 HVAC Systems in Good Working Order ▪ Open Daily from 11:00 AM to 10:00 PM
▪ 1 Hood, 6 Deep Fryers, 1 Biscuit Oven, 3 Large Warmers ▪ Store Provided WiFi and Hotspot
▪ 1 (10x14) Walk-In Cooler and 1 (10x14) Walk-In Freezer ▪ 28 Average Total Employees (Full-Time and Part-Time)
▪ 1 Reach-In Freezer ▪ 10 to 12 Average Full-Time Employees
▪ 2 Full Service Breading Tables ▪ 15 to 18 Average Part-Time Employees
▪ 2 Full Fountain Drink Machines ▪ Top Performing Single-Store Franchise in Great Lakes Region
▪ KFC Integrated Point of Sale and Registers ▪ 2018 2nd Quarter Ranked 4th of 141 stores in Great Lakes Region
▪ Fully Monitored Alarm System ▪ 2017 Ranked 1st three separate months in Great Lakes Region
▪ 150 Gallon Hot Water Tank ▪ 4.1 Stars with 240 Reviews on Google
| Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 4
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County)
Drive-Thru and Rear Egress
Drive-Thru Egress onto Sherman Street
▪ Property has been well maintained and is
currently compliant with all franchise standards.
▪ Property was designed to accommodate heavy
drive-thru traffic with easy access from West
Perkins Avenue and exit onto Sherman Street.
▪ Additional parking for employees on parcel
behind parking lot to accommodate additional
customer parking.
▪ Property benefits from multiple egress points
allowing customers to easily return to their
desired route (east or west) along West Perkins
Avenue or north along Sherman Street.
According to the Ohio Development Services Agency (2014):
▪ 1,529 Total Number of Businesses
▪ 90 New Business Starts
▪ 13% Less Expensive to do Business than National Average
▪ 94.4% Employment Rate
▪ 2,499,346 Population 15+ Years within One Hour Drive
▪ 40.5% Bachelor Degree or Higher
▪ 20.1 Minute Average Commute
▪ 6 Amusement Parks and Waterparks
Source: http://www.eriecountyedc.org/attraction-expansion/
Rear Egress onto Sherman Street
| Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 5
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County)
Market Overview – Excellent Demographics and Demand Generators
Sandusky, Ohio is a Great Lakes port community with a 22-mile According to the Ohio Development Services Agency (2014):
shoreline and is the County seat of Erie County. As of the ▪ #1 Forbes “Best Places to Live Cheaply”
census of 2010, there were 25,793 people, 11,082 households, ▪ #8 “America’s Coolest Small Towns” – CNN
and 6,415 families residing in the city with a population density ▪ #6 “Recession Busting” MSA in Country – Area Development Site
was 2,650.9 inhabitants per square mile. Sandusky benefits Selection Magazine
from being known as vacationland, with some estimated 9- ▪ Emerging Metropolitan Areas: 24th in U.S. by Sperling’s Best Places
million trips to the Erie County shores per year per the ECEDC.
▪ Final Four: “Strongest Town Contest” – Strong Towns
The tourism is fueled by Cedar Point, Kalahari Waterparks,
▪ Cedar Point “Best Amusement Park in the World” 16 Consecutive
Great Wolf Lodge, and other attractions including the
Years by Amusement Today
neighboring islands north of the city, with many transportation
▪ Kalahari – “World’s Coolest Water Park” – Conde Nast Traveler
options leaving right from downtown. The islands include
Source: http://www.eriecountyedc.org/attraction-expansion/
Kelleys Island, South Bass Island (Put-in- Bay), Middle Bass
Island, and North Bass Island.
SUBJECT PROPERTY – KFC
433 W Perkins Avenue, Sandusky, OH 44870
| Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 6
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County) Market Demographics | Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 7
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County) Market Demographics (Continued) | Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 8
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County) Market Demographics (Continued) | Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 9
KFC For Sale | 433 W. Perkins Ave., Sandusky, OH 44870 (Erie County)
Market Demographics (Continued)
Useful Links for Market Demographics and Tourism Data
Erie County Ohio Auditor Website
http://erie.iviewtaxmaps.com/
Erie County Economic Development Corporation
http://www.eriecountyedc.org/
Ohio’s Lake Erie Shores & Islands
http://www.shoresandislands.com/
City of Sandusky Ohio
http://www.ci.sandusky.oh.us/
Ohio Transportation Information Mapping System
https://gis.dot.state.oh.us/tims
*Verifying traffic counts
| Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 10Berkshire Hathaway HomeServices Professional Realty
Full Service Commercial Real Estate Investment and Business Brokerage
Mr. Varone is the Managing Director of commercial real estate and business brokerage for Berkshire Hathaway HomeServices
Professional Realty and was appointed to the National Capital Markets Group dedicated to large complex institutional quality
deals. Mr. Varone’s real estate expertise is centered in operating and regulatory intensive real estate sectors including lodging,
entertainment, healthcare, senior housing, student housing, and special purpose. Mr. Varone’s career as a fiduciary includes
broad experience in investment banking, capital markets, private equity, real estate and business brokerage working with
institutional, corporate, and private clients as a trusted finance, investment and strategy advisor.
Mr. Varone earned his MBA in 2007 from Case Western Reserve University, Weatherhead School of Management and his BBA in
2002 from Ohio University. He has been a licensed real estate agent since 2012 and a certified Six Sigma Green Belt since 2004.
He holds the FIRNA Series 7, Series 24, and Series 66 licenses.
Berkshire Hathaway HomeServices Professional Realty Quick Stats:
Anthony J. Varone, MBA
Managing Director
Direct (614) 304-1641 ▪ Professional Realty has nearly agents in production, of which 42 are brokers with over 30 offices throughout the state of Ohio.
avarone@bhprc.com BHHS’s ratio of brokers to agents is one of the highest in the state of Ohio and within the entire affiliate network.
▪ 2018 gross residential and commercial real estate transactions expected to exceed $1 Billion, with consistent year over year
growth: 2017 nearing $1 Billion, 2016 totaling $786 Million, and 2015 totaling $683 Million. In addition to organic growth,
BHHS acquires seasoned veterans, junior agents, and other firms.
Berkshire Hathaway HomeServices Global Network Quick Stats:
▪ Over 1,400 offices and 47,000 total agents in production throughout the United States of America. Currently, our global
network includes over 2,000 agents dedicated to commercial real estate and business brokerage.
▪ Our network includes a global syndication platform that covers over 5 continents, 37 countries, and 70 specialty listing and
syndication websites.
| Anthony J. Varone | D: (614) 304-1641 | F: (614) 304-1641 | avarone@bhprc.com | Confidential, Privileged, Proprietary, and Subject to Change 11Advisory | Investments | Sales | Leasing | Valuations
Anthony J. Varone, MBA
Managing Director
D: (614) 304-1641
F: (614) 304-2184
avarone@bhprc.com
121 Mill St., Suite 128
Gahanna, OH 43230
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