Houston, TX (Harris County) (Relocatable)

Business Description

Easy to run franchisor business ready for high growth.

The Company is a franchisor in 28 city service areas of affordable pest control services, including insects and wildlife. The company began in 2012 and started franchising in 2016. The customer mix is 60% commercial and 40% residential. The franchisor entity owns three franchisees.

• $610k Sellers Discretionary Earnings (SDE)
o Franchisor: $157k.
o Corporate owned 3 locations: $453k.
• 28% SDE/income margin
• Recurring, diversified Revenue:
o 10,000+ customers over time. 768 of original 800 customers in 2012 still with the Company.
o Over $1M of revenue is recurring revenue
o Low 1.8% re-treatment under the warranty
• Growth:
o $11 billion industry and grown every year over the past 98 years
o #1 sales rep in the area for large pest control company becoming a franchisee
• Competitive advantage: Lowest cost of goods sold
o Small pest control companies buy supplies from home improvement retailers at retail prices. Given company’s purchasing power, it buys $150k in chemicals under the same account and is not marked up to franchisees.
• Environmentally friendly: The Company’s pest control services are based on integrated pest management (IPM) techniques and are non-toxic for children, pets, and wildlife animals, earning the GreenPro and QualityPro certifications.
• Barrier to Entry: Pest control franchisees need master licenses and the franchisor has several people who can serve as the master license holder until the franchisee completes the Certified Applicator license. Buyer of the Company does not need a license themselves.
• Franchise Operations: Franchisor has a call center and operations/dispatch systems
• Finding labor is easy.
• Seller willing to be the license holder if needed.
• Corporate owned franchises:
o Three franchises are corporate owned and there are four Certified Applicators and six Technicians

Detailed Information

Location: Houston, TX

Inventory: Included in asking price

Facilities: 8 trucks and supplies.

Employees: 12

Growth & Expansion:

• Since the business is both a franchisor and has corporate-owned franchises, the growth is in both areas. The franchisor has room for major growth across the southern part of the U.S. There are new franchisees launching regularly.
  

Financing: Negotiable

Support & Training: All necessary training to transition with success! There is a great team in place.

Reason for Selling: Retirement. Owner has been in the industry for 20 years.

Franchise: This business is an established franchise,

Business Website: https://itsbugsorus.com/