Hawaii - Kids Sports & STEM Education Franchise

Honolulu, Hawaii Education Franchise

EXECUTIVE SUMMARY

This successful and easy to operate children’s sports and STEM education franchise has been operating in Honolulu, Hawaii for many years.  After years of investing in marketing they have developed a strong repetitive customer base.  This home-based and high profit margin business is offered for sale due to the owner’s pending relocation to the US mainland. 

Diamond Financial, one of the US’s largest SBA loan providers has pre-qualified this Business for a qualified buyer to obtain the following loan: Amount: $481,900; Term: 10 years; Rate: 2.75% plus Prime, variable; Monthly payment: $5,350.

 

This well-regarded franchised business is focused on providing children, between the ages of 2 to 12 years old, with a broad variety of different sports instruction and STEM classes so they can have a breadth of experiences.   

 

They market through two channels: (i) they work with public, charter and private schools to market these programs to their students, and (ii) they also market directly to children and their parents through their very professional websites; both marketing channels complement each other.  They offer these courses and programs either at the schools or at a Honolulu Park.

 

This is a low-cost operation, they have no office and are home-based, and the owner works on average about 15 to 20 hours per week and she employs teachers and coaches to do most of the instruction and coaching.  The direct to customer invoicing is set up on an automatic monthly credit card billing cycle.  The franchisors have provided a fully developed and detailed curriculum with comprehensive instructional aids, so the programs are already set up and the owner and her teachers/coaches do not need to prepare any lessons plans or the like.  This curriculum is all conveniently organized on the password protected Franchisers’ websites.

 

By 2019, the last full year before Covid-19, the business had grown to annual sales of $566,500, which generated over $326,000 of owner’s profits (“Seller’s Discretionary Income” or “SDE”). 

COMPANY

Listing ID:  HI Schools

Location: Honolulu, Hawaii

Year Established: 2012

Industry: Children’s education

 

FINANCIAL SUMMARY

     2019 Source: Tax Returns

Revenue: $566,589

SDE: $326,407

 

OFFERING SUMMARY

Asking Price:  $528,000

Inventory of goods for sale:  None

Tangible Assets (F,F&E): $1,000

Non-Compete:  5 years

Training:  1 weeks

Sale Reason:  Relocation to US mainland

 

BUSINESS IS: Home Based

 

EMPLOYEES: 5-10

 

COMPETITION (Pros and Cons of Business)

  • Limited direct competition

  • Excellent growth and prospects

INVESTMENT HIGHLIGHTS

 

  1. The owner typically works fewer than an average of 15 - 20 hours per week on the Business.

  2. The Business had been historically very profitable and shown good growth rates.The 2020 Covid-19 period was profitable and did much better than many businesses, she made a profit in 2020!

  3. Established customer base.

  4. Simple and easy operation - everything is well organized (registration, payment, rosters, classes, etc.) and with online instruction and teaching materials.The Franchisors have done an excellent job providing them will a full and detailed set of program curriculum, lessons plans and support materials.

  5. This is a low total cost and a low fixed cost operation (all staff expenses and most royalties/fees are variable), as shown by the 2020 profits they earned.

  6. They are currently taking market share from other sports programs as this Business did not shut down in 2020 while others did.

  7. Their “Google my Business” page is getting high hits.It’s free and since they it was set up before Covid-19 hit and their program has remained active, the Business is ranked very high on Google searches.

  8. This business earns enough money for an owner to really enjoy living and working in Hawaii while working a part time job.

 

EXPANSION OPPORTUNITIES

  1. Continue to add new schools to the existing programs.

  2. Expand geographically to other Hawaii islands.
     

 

To get a detailed Confidential Business Profile about this business with tax return-based financials and other important information, please contact Hawaii Business Sales.