Sectors / Category

Annual turnover

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  • Mandate: 28096
  • Added: 06 Sep 2018
  • AFS
  • 1620

Pizza Franchise with great cash flow

Gauteng, Pretoria
1620
Mandate 28096
Added 06 Sep 2018
R 3,180,000* ZAR
Stock: R 80,000
Assets: R 600,000
R 132,287 ZAR
Driekie Louw
Aldes Focus
Gauteng
Summary

Located in the East of Pretoria this neat little business with management in place also enjoys the support of a committed franchisor. Great menu, well trained staff and personal deliveries in the surrounding area puts this pizza outlet a step above.

SELLING PRICE AFS
R 3,180,000* ZAR
Stock: R80,000
Assets: R600,000
R 132,287 ZAR
Summary

Located in the East of Pretoria this neat little business with management in place also enjoys the support of a committed franchisor. Great menu, well trained staff and personal deliveries in the surrounding area puts this pizza outlet a step above.

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Fully describe the business's activities?
Pizza franchise that caters for the family. The business serves gourmet pizzas, traditional Italian pastas, chicken and meat dishes and a a variety of hot beverages. Even split between sit down, take away's and deliveries. 3% Royalty payable. No marketing fee.

How long has the business been established?
The owner bought the outlet in August 2016.

How long has the owner had the business?
Established since 2005.

How does the business operate on a daily basis?
One of the managers opens the business when the preparation for the day starts. There are currently three managers in the business, but it can be run with only one.

How are the clients attracted to the business?
The restaurant is well known in the area it serves. The owner does some menu drops in the surrounding area.

What Advertising/Marketing is carried out?
The franchisor assist with some of the marketing efforts. This is normally done in the form of advertising certain specials to the existing customer base.

Does the business have any contract work?
No contract work.

What competition exists?
There are other similar pizza shops in the area.

What are the seasonal trends?
During December, especially during Christmas and over New Year, there's a drop in sales. During a normal day the business serves more customers during lunch and in the evening. Morning trade is not that busy.

Is the business VAT Registered?
The business is VAT registered.

What Balance Sheet and Income Statements are available?
Annual Financial Statements for the year ending February 2017

What percentage of the business is cash/credit?
No debtors. At least 60% of customers pay with credit or debit cards.

How could the profitability of the business be improved?
Promoting the new breakfast menu will certainly increase sales. Cutting back on two managers will increase net profit with about R16 000p/m

Is Seller finance available and for what amount?
Yes seller will consider a sizable deposit with the balance paid over 12 months.

What is the total staff complement?
3 X Managers 4 X Kitchen staff 4 X Waiters 4 X Drivers 5 X Pizza Chefs 1 X Barman 1 X Sculler

Give a breakdown of staff/ functions/ length of service?
The one manager has been with the business for quite some time and assist the owner with almost everything. Another manager who is also more than capable to handle all the day-to-day activities of the business. 5 XPizza-makers and griller with 5 kitchen assistants preparing dishes. 4 X permanent waiters Two drivers that do all the deliveries to customers

Are they on contract?
All staff contracts in place

Do any have management potential?
The owner is satisfied with the performance of the managers

How involved is the Owner in running the business?
The franchisor requires a 100% involvement from the franchisee/owner

When does the current lease end?
The lease agreement was renewed during August 2016.

Is there an option of renewal & what period?
There's an option to renew for a further 5 years. The franchisor normally assist the owner to secure a lease agreement.

What is the annual escalation %?
Annual escalation of 8%.

What are the trading hours?
The business trades from 10 in the morning to 10 at night.

What is the square meters of the business?
Around 160 square meters.

Is a copy of the lease available?
Yes

What lease deposit and/or other surety is required?
Three months rental deposit is payable

What are the main assets of the business?
Pizza ovens and grills.

Are any items not included in the sale?
Everything is included in the sale. The Point-of-Sale system is however on a rental contract and the new owner would need to arrange the transfer of the agreement with the service provider.

What is their overall condition?
Good

Do any require repairing?
No immediate repairs required. Business was revamped last year and another won't be needed for the next 5 years.

How have they been valued ?
Owner's valuation.

Which assets are on lease/HP and with whom?
All the assets have been paid for.

Are they presently insured?
All assets are comprehensively insured.

Strengths?
Secure and reliable suppliers. Franchisor training as well as tried and tested franchise operating processes. Proper management and systems in place.

Weaknesses?
Current owner not 100% involved in business as per franchisor requirements

Opportunities?
More deliveries. More owner involvement and marketing.

Threats?
None were identified.

What is the reason for the sale?
The owner is involved in other businesses and the franchisor requires stronger commitment to the outlet.

Why is this a good business?
Excellent location in busy center with no direct competition. Established for more than 10 years and part of a franchise group. Exceptional food . Solid cash flow.

What is the price plus stock and the net profit?
Selling Price of R3 100 000 excluding stock of R80 000 and excluding the Franchise Joining Fee.

Other costs
The prospective buyer will need to pay R100 000 joining fee to the franchisor and also needs to complete the franchisor training. The landlord also requires a deposit.

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FRANCHISE DETAILS

Aldes Focus

3 members
21 active mandates
Gauteng
282 Fremontia Street
0081

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