City Website Franchise Network
B2B SaaSIt sells franchises to run local city websites in about 200 cities, charging territory and monthly fees while franchisees keep the ad money they bring in.
Ask $553K · Profit $251K · 2.2x · Empire Flippers
Oct 29
- Ask
- $553K
- Revenue
- $359K
- Profit
- $251K
- Margin
- 70%
- Multiple
- 2.2x
- Age
- 8 yrs (Jun 2018)
- Label
- Worth Studying
- Reason
- 8 years of profit at a 70% margin, but with no trend figures and no reason given for a low 2.2x price, too much is unknown to rate it a purchase.
Why it's interesting
- About 90% of revenue comes from franchisees paying an upfront territory fee plus monthly management fees, so income does not depend on the owners selling ads.
- Owns 488 city and supporting domains, with about 200 live sites, leaving domains the network has not yet turned into franchises.
- A remote contractor team covering programming, web, research, content, design and franchise training stays with the business; content comes from automated feeds, submissions and franchisees.
What to watch
- Asking 2.2x for an 8-year business with a 70% margin is unusually low, and the listing gives neither a reason nor trend figures; shrinking franchisee numbers would be one explanation.
- The owners still work 20-25 hours a week, so franchise sales and support need a capable replacement.
- Selling franchises can bring disclosure and registration duties in some countries, and the listing doesn't say where franchisees are or how this has been handled.
Who it fits
Someone with franchise sales or local-media experience who can give 20-25 hours a week to recruiting and supporting franchisees.
Ask the seller
- How many franchisees were active at the end of each year since 2018, and how many cancelled in the last 12 months?
- Why was the price set at 2.2x profit?
- In which countries do franchisees operate, and has the franchise offer been registered or disclosed under local franchise law?
Growth plays
- Sell network-wide campaigns to national and regional advertisers who want multi-city reach, expanding the centrally negotiated ads that are now about 10% of revenue.
- Market the owned city domains with no live site as ready-made territories to local publishers and event organisers.
Oct 29Added to Acumen Wire