Fred Posted June 14, 2011 Share Posted June 14, 2011 Hi all, I've done a ton of research and am planning to make the plunge and buy my first location. I've read various advice on the purchase price for an existing location/route and seen everything from 6 months net to 12 months gross (the latter seems very high to me). So, my question is, what is a reasonable price to pay for a location? Obviously no verification of income. Specs of this particular location are: - Local mall - 5 snack machines - $550/month rent to mall owner + 15% of amount over $1000/month gross - Claimed gross monthly income $1300-$1900/month, which I've determined to be about $300-$700/month net, after the rent, insurance and snack costs. My plan is to request terms with the final price based on the actual income earned after 3 months, but I'm also looking for some general advice on multipliers for purchasing existing locations. Thanks in advance. Link to comment Share on other sites More sharing options...
Poplady1 Posted August 16, 2011 Share Posted August 16, 2011 Hi all, I've done a ton of research and am planning to make the plunge and buy my first location. I've read various advice on the purchase price for an existing location/route and seen everything from 6 months net to 12 months gross (the latter seems very high to me). So, my question is, what is a reasonable price to pay for a location? Obviously no verification of income. Specs of this particular location are: - Local mall - 5 snack machines - $550/month rent to mall owner + 15% of amount over $1000/month gross - Claimed gross monthly income $1300-$1900/month, which I've determined to be about $300-$700/month net, after the rent, insurance and snack costs. My plan is to request terms with the final price based on the actual income earned after 3 months, but I'm also looking for some general advice on multipliers for purchasing existing locations. Thanks in advance. I realize this is an old post, I am just wondering, did you do this? If so, did it work out for you. Poplady Link to comment Share on other sites More sharing options...
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