HS Listing ID-67359

Business Overview – Multi-Location Smoke Shop Chain

Key Details

Business Type: Retail smoke shop chain (9 locations total)

Locations:

1 in Maryland

8 in Delaware

All in prime shopping center locations (e.g., Walmart, BJ’s) with high visibility

County restrictions make it hard for competitors to obtain licenses

Ownership: Two brothers (co-owners)

Established: First store opened in 2018

Reason for Sale: Owners focusing on a newly opened manufacturing facility; liquidating all stores

Operations & Staffing:

Each store: 3 employees (including a manager)

2 general managers oversee all locations

Owners visit about once a week for oversight

Hours: 10 AM – 9 PM, 7 days/week

Financials:

Annual Revenue: ~$8.5M

Gross Margins: ~40%

Inventory Value: $2.5M included in sale

Estimated Profit: $3.5M – $4M annually

Leases:

Most: 5 years with two 2-year renewal options (10 years total)

One beach location: 2-year lease with consistent renewal history

Store Performance:

Highest store: $1.8M annual revenue

Three stores: $1.2M–$1.4M each

Two new stores: $50K–$60K/month (3–7 months old)

Seasonal stores peak at $100K/month in summer

Brand & Assets:

Trademarked brand name

40,000+ customers in rewards program

Master distribution rights with key vendors in Delaware (lowest wholesale pricing)

All stores fully licensed

POS system and tracking app used across all stores

Product Mix:

Vape products (mods, juice, disposable vapes, accessories)

CBD, THCA, Kratom

Glassware, novelty items, clothing, smoking accessories

No tobacco/cigarettes sold – expansion potential

Crucial Selling Points

High Revenue & Profitability: $8.5M annual revenue with 40% margins; strong cash flow and short ROI period (~6 months to recover investment excluding inventory).

Prime & Protected Locations: Stores in premium shopping centers; difficult for competitors to secure licenses in these areas.

Operational Independence: Minimal owner involvement (once a week visits); strong management team in place.

Brand Strength: 40,000+ loyalty program members; well-known and trusted locally; trademarked brand with established market dominance.

Vendor Advantage: Master distribution rights for multiple brands in Delaware, providing cost advantage and exclusive relationships.

Growth Opportunities:

Introduce tobacco/cigarettes to increase revenue

Extend store hours

Build e-commerce platform (domain and social media already exist)

Further leverage loyalty program for promotions

Scalability: Systems, staffing, and brand are built to support expansion or franchising.

Flexibility in Sale: Owners open to selling all locations together (preferred) or individually.

A SIGNED CONFIDENTIALITY AGREEMENT IS REQUIRED FOR THE EXACT LOCATION