Shumacher Sells Two-Unit Sonic’s Franchise w/Real Estate

by Steven Josovitz

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The Shumacher Group, Inc. has just sold today two Sonic “America’s Drive In” Franchises in Woodstock and Roswell. The Shumacher Group, Inc.and Steve Josovitz represented the out of state Owners in transaction.

These units in the North Atlanta suburban feature areas that are middle to hi income, hi traffic with great visibility. Absentee Owner and Estate of deceased Partner is in Oklahoma with no ability to grow and expand thus the reason for sale. Owner currently had a GM running the Woodstock unit at a salary of $65,000 per year who also oversees the Roswell location.

Investment Highlights

  • Purchasing an immediate two store base in a 50 store market.  
  • One seasoned manager (also has experience opening locations) oversees both Drive Ins with two assistant managers
  • Development growth opportunities exist in various trade areas throughout the Atlanta DMA  Franchisee owns another parcel within six miles of existing Drive-Ins that is currently listed for sale 
  •  Tight geographic span:   Drive Ins are within eight miles of each other
  • Both Drive Ins were built by current franchisee between 2004 and 2006
  •  Experienced a 6.6% sales increase as of August TTM from FYE 2011 which comps a 5.3% sales increase in 2011 over 2010    
  • Top tier QSR Brand in growing market with favorable demographics
  • FY 2010

    FY 2011

    TTM August 2012

    $

    %

    $

    %

    $

    %

    Net Sales

    1,100,118

    100.0%

    1,157,981

    100.0%

    1,234,758

    100.0%

    COGS

    333,609

    30.3%

    360,111

    31.1%

    394,234

    31.9%

    Gross Margin

    766,509

    69.7%

    797,869

    68.9%

    840,524

    68.1%

    Labor

    390,695

    35.5%

    373,271

    32.2%

    408,851

    33.1%

    Controllables

    140,290

    12.8%

    133,107

    11.5%

    141,272

    11.4%

    Advertising

    59,791

    5.4%

    56,162

    4.8%

    55,848

    4.5%

    Royalties

    27,242

    2.5%

    72,778

    6.3%

    64,502

    5.2%

    Occupancy 1

    88,009

    8.0%

    92,638

    8.0%

    98,781

    8.0%

    Other Fixed Costs

    30,869

    2.8%

    23,087

    2.0%

    22,698

    1.8%

    Other Expenses 2

    9,221

    0.8%

    8,034

    0.7%

    6,674

    0.5%

    Drive in Level EBITDA

    20,390

    1.9%

    38,792

    3.4%

    41,899

    3.4%

    Footnotes:
    1) For presentation purposes, Occupancy Expenses (inclusive of property tax) includes an adjustment of historical rents to 8% of sales for each period presented.
    2)  One time and above store expenses were deleted for each period presented.

Unit One ( Woodstock )

11960 Highway 92, Woodstock, GA  30188

  • 1,437 Total Square Feet
  • Single Tenant Retail
  • 0.78 Acre Lot
  • Zoned GC
  • Excellent Demographics
  • Frontage on Highway 92
  • High Traffic Counts on Highway 92
Woodstock, GA 30188

Unit Two ( Roswell )

11105 Crabapple Road, Roswell, GA  30075

  • 1,437 Total Square Feet
  • Single Tenant Retail
  • 0.8 Acre Lot
  • Zoned C2
  • Excellent Demographics
  • 25 Feet on Crabapple Road
  • High Traffic Counts on Crossville Road (Hwy 92)
Roswell, GA 30076

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