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The business is a simple tool distribution Franchisee model, which is an owner operator run business. The business owner has built the business himself over the last 5 years and has grown year over year sales to over $500K (CAD).
The business grew during Covid-19 in 2020 and 2021. Over the last 5 years this franchise has grown revenues by providing an exceptional customer service and experience, achieving a compounded annualized growth rate (CAGR %) of over 8.4%. They currently have built a strong brand name in his territory and always has orders on hand.
Strengths & Opportunities:
Easy to Operate
Easy to Learn
Strong Repeat Business
No business development
Supportive Franchisor
Franchisor does lots of marketing through different media channels
Commercial B2B Customers
Growing Industry
Business grew during Covid
Over $500K in Sales for 2020 & 2021 as well.
Well established business
The Sales Opportunity Is Massive.
“There are so many vehicles out there (272.4 million as of 2017 in the US alone, according to the US Federal highway Administration) and driving is such a critical function of life in North America. Those vehicles need maintenance and repairs, and it’s not an optional expense. People have to have it.”
The Industry.
According to IBIS World (Tool & Hardware Wholesaling in Canada 41633CA) the Tool and Hardware Wholesaling industry in Canada is likely to grow over the five years to 2025 as the Covid-19 Pandemic recedes, and the economy at large benefits from improving economic conditions. Although this business grew during Covid, this growth is expected to continue to future years.
Running The Business Is Simple.
“It’s a pretty simple business. You buy something for a certain price and hopefully sell it for more. Then you make the deliveries. It’s not really complicated. You have a lot of customers. More than 50% of it is cash on delivery payment, so you don’t have a lot of money tied up in receivables. The business opens at 8 and shuts down at 5:30. You may have some things to do after hours as the owner, like payroll, but you can develop a pretty reliable routine.”
— BILL MAGRUDER, FRANCHISEE IN SAN ANTONIO, TEXAS
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