Fully describe the business's activities?
The business sells fast food. Only 3 lines, namely, chicken, fish, rusian and chips and pap and meat. They also sell cold drinks.
How long has the business been established?
The landlord of the building opened the business 16 years ago and mananged it for 3 years, prior to selling it to the current owner.
How long has the owner had the business?
The owner bought the business 13 years ago.
How does the business operate on a daily basis?
The owner or his assistant opens at 7am and serve incoming clients at the till. The business closes at 6.30 pm daily, except for Saturdays when it closes at 5pm. The business is closed on a Sunday.
How are the clients attracted to the business?
The business is located in a very busy spot with many foot traffice, the passage from the taxi rank is next to the business in this mall.
What Advertising/Marketing is carried out?
No advertising is done as the clients know this business well for the good food at affordable prices.
What competition exists?
There are no other fast food outlet close by.
What are the seasonal trends?
July and December months are normally busier, however, the turnover is very steady throughout the year.
Is the business VAT Registered?
The business is registered for VAT.
What VAT documentation is on file?
We have the last 12 VAT returns on file.
Are there up-to-date Management Accounts available?
The seller has provided us with the turnover and expenses for the period November 2015 to October 2016.
What Balance Sheet and Income Statements are available?
We have the February 2016 financial statements on file.
What percentage of the business is cash/credit?
How could the profitability of the business be improved?
A new owner could introduce more food on the menu, sell more sigarettes, airtime, lotto and other lines.
Is Seller finance available and for what amount?
The seller wishes to go back to his birth land and would like to have his selling price and stock payable on the effective date.
What is the total staff complement?
The total staff complement, excluding the owner is 6.
Give a breakdown of staff/ functions/ length of service?
1 till operator and 5 kitchen staff.
Do any receive special perks or incentives?
The seller provides a meal a day to the staff.
Do any have management potential?
The till operator is trustworthy and is able to manage the business for short periods of time. This is a 100% cash business and a new owner should be hands on or employ a trusted manager.
How involved is the Owner in running the business?
The owner is 100% involved in the running of the business.
When does the current lease end?
The current lease ends in 3 years.
Is there an option of renewal & what period?
The landlord is open to negotiating a new lease with terms suitable to a buyer.
What is the annual escalation %?
What are the trading hours?
Monday to Friday: 7am to 6.30pm Saturdays: 7am to 5pm Closed on Sundays and Public Holidays
What is the square meters of the business?
Is a copy of the lease available?
A copy of the lease will be made available during due diligence proceedings.
What lease deposit and/or other surety is required?
The landlord will require 2 months rental deposit (+/- R56,000)
What are the main assets of the business?
A back up generator, a 50,000 liter water tank, ice cream machine, cold room, freezers, kitchen equipment and other as per asset register on file.
Are any items not included in the sale?
All assets as seen in the shop and on the asset register is included in the sale.
What is their overall condition?
The assets are in working condition.
Do any require repairing?
Ongoing maintenance is always required on fridges and equipment.
How have they been valued ?
The owner valued the assets at replacement value.
Will Seller settle or Buyer to take over?
All the assets as per the asset register are unencumbered.
Are they presently insured?
The business is comprehensively insured.
Profitable and easy to run business. Good hours, no evening trade and closed on Sunday and Public Holidays.
Cash business and owner control needed.
To be discussed with potential buyers.
No real threats are identified other than security as this is a 100% cash business.
What is the reason for the sale?
The seller wishes to return to his country of birth.
Why is this a good business?
Position of the shop which ensures a lot of feet traffic. Very easy to run and control with only 3 lines on the menu. Very profitable business with ROI of 72% for a buyer.
What is the price plus stock and the net profit?
R2,500,000 plus stock of R200,000. Average net profit of R162,500 per month.
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