what is this business worth? Copied and pasted from Craigslist

mrotto

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Sep 1, 2009
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Paul Ottensmann
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Selling my 5-year old carpet cleaning franchise. We are #1 rated in Milwaukee with 150+ Google reviews. This would be Milwaukee County only for $150,000.

We did about $155,000 in revenue in (xyz) County last year. An owner operator could bring this area to $200,000+ easily and make a very nice profit. Or hire technicians, add more vans, and you can manage a fast-growing franchise business.

Includes:
-Existing website ranking page 1 on Google
-Customer list (already loaded into our CRM. I will hand you the keys to our entire customer database with transaction history)
-Email list
-Google Ads, Facebook Ads accounts are running @ $1,000/mo ad spend (fantastic ROI!)
-Verified Google My Business (positions 1 and 2 in the local pack), Facebook, Yelp accounts
-1 Ford E250 van with company wrap
-1 set of carpet & upholstery cleaning equipment (will provide details)
-1 week of training
 

mrotto

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Sep 1, 2009
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Paul Ottensmann
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-5-year old carpet cleaning franchise.
-#1 rated with 150+ Google reviews
-Existing website ranking page 1 on Google
-Verified Google My Business (positions 1 and 2 in the local pack), Facebook, Yelp accounts

and doing only $155,000 in sales?

Not to mention that the age/mileage of the van is not mentioned (it would be if it was newer) and equipment is not listed.

Reason for the thread is really to ask why PAY for something that anyone (with any real effort) can replicate fairly quickly with information online?
 
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OxiFreshGuy

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Boris Johnson
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Lol $150,000 for a 1 truck operation LOL, man, you could put a down payment on 2 trucks for a total of $50,000 and have $100,000 to invest in marketing and if you're good at what you do and know how to get customer reviews and referrals, you'd have 100 reviews in a year and a $200,000 business by year 2.

His business is worth $50,000 at most.
 
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Spazznout

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Matt
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The problem is you are NOT buying a business.

This is simply a job for sale.

Notice you would be limited to Milwaukee County

And this looks like it is 80 miles or so north of Chicago on lake Michigan. This means hell winters.

Not sure its worth any more than the equipment and a another 15K for brand and community reputation.

Customer list is worthless as most will not stay with the new buyer as they expect the old owner as this is an o/o job for sale.

And dont get your underwear in a knot.............. I am not dissing O/O. But you also need to be realistic that in the end your businesses are only worth your current equipment plus a hair more for established pros branding and community reputation.
 
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wandwizard

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Well, at least he's throwing in a whole week of "training". That's worth a few hundred right there! I doubt he's going to get anyone to take him up on his generous offer. If they do they're even nuttier than he is. I am not a big fan of franchise cleaning companies either, but that's just me. Most of the franchises I've seen locally are poorly run and do work so bad that most rookies could beat them just by doing a 1/2 way decent job.
 

Anderson

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O/O carpet cleaning companies difficult to sell....

multi truck could actually be wrth something as they are tied to the business and not the owner as much......

different from janitorial as they have yearly contracts....
 

OneBlueSummer

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Charlie King
It's a job and it's worth next to nothing. 150k/yr with 1000/month in ads just to keep that yearly gross... is... gross.
how is 1k = 150k gross a bad margin? or am i missing your point?

The other bad part about franchises is not only are you gonna pay about 8% off every dollar but you also have to use their chemicals and equipment.

This is a LM company so they are stupid easy to train and run. ... and make net.

Id like to see the numbers as I bet you could hire 2 guys right away and scale from there.

The only thing worth anything is the marketing and time, the franchise aspect is a big pimple on the forehead though.
 

beau

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Beau Phipps
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how is 1k = 150k gross a bad margin? or am i missing your point?

The other bad part about franchises is not only are you gonna pay about 8% off every dollar but you also have to use their chemicals and equipment.

This is a LM company so they are stupid easy to train and run. ... and make net.

Id like to see the numbers as I bet you could hire 2 guys right away and scale from there.

The only thing worth anything is the marketing and time, the franchise aspect is a big pimple on the forehead though.

I think it means that very little of its organic. Anyone else could buy the equipment and drop 12k a year in advertisment and would quickly get up to such a level of revenue in the area. (Assuming they dont make a bad name for themselves)At least thats what it looks like to me.
 

rob allen

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www.drynclean.com
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Robert Allen,Jr.
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There's a sucker born every minute...

Find a goober with 9-5 job they hate.

Take them on a ride along for a $1000 day.

Bring a banker on the ride along too..
Smart idea.