When does the current lease end?
The current Lease shall end in 2018. The Center / Mall management is very open to discuss a new Lease Agreement with the right tenant. Please be advised that the normal ITC shall be done and that you as the potential tenant shall be interviewed by Center / Mall Management, for approval.
The Franchise Group shall also require interviews to approve you as the new Franchisee. It is imperative that you as the New Franchisee be screened to insure that the business is best suited to your and you are suited to the brand.
Is there an option of renewal & what period?
There is an option for Lease renewal in the current Lease agreement. We at Aldes have worked with the Center / Mall management before and know that they would rather start with a New Lease Agreement when a Business is sold and a new owner takes position thereof.
What is the annual escalation %?
The annual escalation is 10%. It is important to understand that the Mall has additional charges over and above the Rent on a Monthly basis. Please be advised that the Expenses has been incorporated into the Income Statement.
Electricity, Maintenance on the Air Conditional, Marketing Fund, and Municipality rates, Municipality Refuse, Sanitation, and Water. As part of the Due Dilligence all the expenses in the Business shall be verified.
What are the trading hours?
The trading hours of the Business is in line with the Mall recommended hours of trade. Please be advised that these trading hours are only approximate hours and may diver from time to time depending on the season trend (Inclusive of Holidays) and mall management advertising and promotions.
Mondays to Fridays. 09H00 to 18H30
Saturdays. 09H00 to 17H00
Sundays. 09H00 to 15H00
What is the square meters of the business?
74 m2. This is an small shop with an outside bench eating area. Please be advised that the Franchise Business for Sale is an Take Away Business and not a Restaurant.
Is a copy of the lease available?
An Copy of the Lease in available from the Seller and or Center / Mall Management after proof of funds have been established and an viewing and expectance of the Business have been received. In the interim as part of the Due Diligence an copy of the Monthly Rental Invoice with all additional charges are on file with Aldes.
Do you require a licence?
The following Licenses are in place as per governmental acts, policies and regulations. Please be advised that Aldes eMalahleni shall be able to assist with all the necessary transfer of licenses and or reapplying for the license as the case may be.
1. Trade Licenses (Business Licenses) in terms of Regulation 5 of the Licensing of Business Regulation, 1996 made under Section 6 of the Mpumalanga Business Act, 2 of 1996. This license is not transferable and the new owner shall need to reapply for his own licenses. (Ones of Application and Payment with no Renewal Fees annually)
2. Health Licenses (Certificate of Accessibility) in terms of Section 15(1)(n), where applicable, read with section 15(7)(b), of the Foodstuffs, Cosmetics and Disinfectants Act, 1972 (Act No. 54 of 1972). This license is not transferable and the new owner shall need to reapply for his own licenses. (Ones of Application and Payment with no Renewal Fees annually)
3. SAMRO Licenses, as per the âSouthern African Music Rights Organizationâ. (Ones of Application and Payment, and renewable Yearly â this is a much uncontrolled License with no Local Municipal involvement)
4. SAMPRA License, as per the âSouth African Music Performance Rights Associationâ (Ones of Application and Payment, and renewable Yearly â this is a much uncontrolled License with no Local Municipal involvement)
What lease deposit and/or other surety is required?
The new owner shall need to accommodate (financially) for the following expenses:
R 23 000 for first month's rent.
Approximate R 60 000 to R 80 000 as Rental Deposit (This is an aspect that shall be discussed with the Mall Management)
Franchise Joining and Training Fee of R 130 000-00 Excluding VAT.
The current Owner has made inquiries with the Franchise Head Office and they have come back with a discounted Franchise Fee of R 85 000-000 Excluding VAT, if the new owner decides to do a revamp on the Store immediately.
A Revamp is not a must for this Franchise Business and shall be the prerogative of the Purchaser. If the Potential Purchaser does decide to proceed with the Revamp, the cost of the revamp shall be approximately R 130 000-00 to R 150 000-00.
Approximate R 10 000 for the License applications and all the necessary placement of licenses. Please note that this is aspect that shall take time and is not an all ones off expense.