Commercial Bakery/Commissary & Ice Cream & Retail/Franchised Stores

The Offering Consists of Four Parts:

Commercial Bakery & Commissary (Part 1)

Commercial Bakery: Production of Cheesecakes, Bourbon cakes (which have a Federal trademark) and other related baked goods. In operation for over 35 years.
Commissary: The Commercial Bakery also incorporates the production facility and commissary for the Retail Stores (listed below).

Products are sold via wholesale national and Canadian distribution as well they are now entering into website/internet (e-commerce). The Commercial Bakery coordinates their own logistics.The Company is an approved vendor for: Kroger, Publix, Sam’s Club, Trader Joe’s, Costco, Sysco Walmart and more. This is very significant.
Facility Audit: The Commercial Bakery facility is an audited facility including GMP, HACCP and Costco audits. In 2015, 2016, 2017 and 2018. The current audit is current through 2019.

Audit Score: The Commercial Bakery scored 97.7% in 2017; 98%. In 2018. Scores above 97.4 require no corrective actions.

All assets/equipment, recipes and brands included in the sale. Inventory is operate in order to allow seller to meet seasonal demands without changing the price. The Commercial Bakery has staff with some having between 7 years and 30 years employment at the Commercial Bakery.

Retail Stores (Part 2)

Full service retail stores operations offering scratch made ice cream, baked goods with carry out service, as well sit down service. The first retail store opened in 1982. Each store is fully equipped with top of the line equipment which is on a monthly service schedule. All stores maintain an A Rating. Whereas typical bakeries do not offer ice cream and ice cream shops do not offer baked goods, this operation offers both and full service. The demand for this from consumers is significant.

Stores operate 7 days a week with weekday hours of 10 to 9 and Friday and Saturday until 11 p.m. This allows customers to carry out or enjoy desserts while sitting down in comfy booths or tables, as each store has ample seating. The retail stores incorporate state of the art technology in software from their iPad registers, to smart phone scheduling and payroll processing with human resources. All providing excellent data with minimal effort, thus reducing work load. Labor is reduced and controlled through the Commercial Bakery operations. Food cost have the advantage of the buying power of the Commercial Bakery to allow the retail stores to compete against major retailers with a much better and premium product. Opportunity for wholesale growth in local market places with ice cream and baked goods to restaurants and institutions who face tight labor. Each store has a manager and full time baker. The training baker has over 17 years employment with the Retail Stores.

Franchise Retail Operations (Part 3)

The retail store operator has worked over the past 5 years to develop franchise stores which will facilitate growth in areas and cities outside their current area. These stores are now in operation as franchises. Includes FDD (Financial Disclosure Document) and Franchise Agreement developed by the former Franchise counsel for Yum brands. · Franchising is an Owner Operator model. Limited to 2 stores per Owner Operator. This removes the labor issue of managers and puts owners in each store, like Chick-Fil-A. This in return should provide better opportunities as the owner is onsite. The Commercial Bakery supplies each Franchise. Expansion of Franchises creates growth for the Commercial Bakery as well royalties from revenue.

Real Estate for Commercial Bakery (Part 4)

•Real Estate: Owned debt free by business seller and is not included in any asking price.
•Building: 30,000 SF with offices and 15,000 sq ft under air conditioning. Four loading and receiving docks. Large employee break room. Sitting on 2 acres in highly desirable location with access to major expressways in minutes.
•Employees: 20+
•Furniture, Fixtures, & Equipment (FF&E): Are not part of the real estate sale. They are included in the Asset Sale of the Commissary Bakery.

Outlook:
The Company’s products are currently in over 2,900 Walmart stores, Kroger, Trader Joe’s, Sam’s Club and more. The specialty cake brand (branded under the proprietary brand and trademark) has a strong outlook. Seasonal demand outpaces the ability to make cakes, though the facility has added capacity and now has more capacity. Seller believes that sales could grow by over 50% within less than 2 years by driving focus on sales along with building better efficiencies and output of the product. Cake sales of the specialty branded cakes for the last four months of 2017 were over 67,000. Cake sales of the specialty branded cakes in the last four months of 2018 were over 127,000. The company has been without a sales rep for several years. With a new owner focused on growing the lines and being hands-on, the pieces are in place to expand.
The retail store brand Is a well-established brand and name for over 35 years. They have recently rolled out a new fresh churned, from scratch, ice cream. The opportunity for ice cream growth is significant and the improvement is like Domino’s redoing their pizza. Several stores perform well, several do not. To improve it is the owner’s opinion that a new owner/operator who will be hands-on and not an absentee owner in the sense of the new owner being in the stores on a regular basis offers the help the stores grow revenues and profits.

The retail store brand is franchise ready; The groundwork has been laid prepared for expanding the franchising of stores, with stores now operating as franchises. The franchise method allows owner-operators to have their own stores and expansion of the product line with the parent company (Mfg. of ice cream and baked goods) supplying products and collect the franchise royalty.

Growth & Expansion: The owner feels sales can be increase significantly with an individual who places an emphasis in sales and marketing and puts in place someone with selling experience, as noted they currently do not have a sales person as the owner has been focusing on franchising. The Commercial Bakery can realistically handle more than doubling to tripling the volume for franchises. The Commercial Bakery has been and is operating five days a week with a single one shift production.
Offering Price Based on the Acquisition of All Companies:

• Commercial Bakery & Commissary: Purchase price $255,000*
• Retail Stores: Purchase price $740,000*
• Total Purchase Price $995,000**

• Retail Franchising LLC: $108,000 (Based on new store opening in Elizabethtown and PK2, PK Franchising will bring in up to $54,000+ annually). I will stay on for up to 6 months to help buyer in exchange for holding Pie Kitchen Franchising for a delayed closing of 6 months, thus allowing me to draw the income for 6 months in lieu of a salary.

• Real-estate: $1,550,000 ** To qualify for the price of $995,000 on the Commercial Bakery & Commissary and Retail Stores, buyer is required to purchase Real-estate.

Seller Financing to well qualified buyer:

• Commercial Bakery & Commissary: 30% $75,000 (Will not finance inventory)
• Retail Stores: 20% $148,000
• Store Franchising : 0%
• Real-estate: 0%

* Sale price does not include inventory.

Offering Details