Fully describe the business's activities?
Well known franchised vehicle service centre situated in Rustenburg. The business is well established and enjoys government work and a lot of repeat customers.
How long has the business been established?
The owner started the business in June 2014.
How does the business operate on a daily basis?
The manager opens and closes the business daily. Mainly walk in trade and returning customers.
What Advertising/Marketing is carried out?
Franchisor does a lot of advertising and franchisee pays 2.5% of turnover towards the marketing fund. Huge billboards and signage. Newspaper adverts. Advertised on Radio when started out. Word of mouth.
What competition exists?
There are other service centres in the area.
What are the seasonal trends?
Winters are a bit quieter. Mining activities directly affects the business.
Is the business VAT Registered?
Yes, the business is VAT registered.
Are there up-to-date Management Accounts available?
Owner has supplied us with management accounts until September 2018.
What Balance Sheet and Income Statements are available?
Financial Statement for the year ending February 2018
What percentage of the business is cash/credit?
About 15% cash is received the rest is via EFT. On big jobs a 40% deposit is requested.
How could the profitability of the business be improved?
Focus on getting private fleets. Opening another branch focussing on the higher income market as the business is currently focussing on the middle and lower income market.
Is Seller finance available and for what amount?
Owner will consider financing a buyer with a minimum deposit of R1million paid in cash.
What is the monthly royalty and the joining fee?
Monthly royalty is 5% of the turnover. Joining fee is R75 000 payable to the franchisor.
Give a breakdown of staff/ functions/ length of service?
3 x Technicians of which one is a qualified mechanic 1 x Admin/Reception 1 x Manager 2 Workshop assistants
Do any receive special perks or incentives?
Monthly salaries. Performance bonuses are paid in the form of 13th cheques based on the performance of the business and owners discretion.
Are they on contract?
Yes, all staff have contracts.
Do any have management potential?
Yes, Manager is in place with a monthly salary of R15 000.
How involved is the Owner in running the business?
Owner only visits the business a couple of times per month as he is based in Gauteng.
When does the current lease end?
Current lease ends June 2019
Is there an option of renewal & what period?
Yes a further five year option to renew.
What are the trading hours?
7:00 - 16:30 Monday to Friday, 8:00 - 13:00 Saturday
What is the square meters of the business?
Is a copy of the lease available?
A copy is available from the owner.
Do you require a licence?
The business is registered with Mibco, RMI/Miwa
What lease deposit and/or other surety is required?
Two months lease deposit is payable.
What are the main assets of the business?
The business has three lifts and security cameras providing live feed.
Are any items not included in the sale?
All items as per the asset list is included. Chev Utility 2014 vehicle is NOT INCLUDED
What is their overall condition?
Everything is an a good and working condition.
Do any require repairing?
How have they been valued ?
Owner assisted us with the insured value.
Which assets are on lease/HP and with whom?
Vehicle, but this is not included in the sale
Are they presently insured?
Yes, comprehensive insurance is in place
This is a well known franchise brand. The business is situated in a good and busy location with lots of parking. Great Customer Service. Only franchise in the North West.
The volatile mining labour situation does affect the business. The business does not have any fleet contracts.
Another branch can be opened. Focus on getting fleets
Unavailability for certain parts (mainly Chinese cars) Limited service providers
What is the reason for the sale?
The owner lives in Pretoria and wishes to focus on his businesses closer to home.
Why is this a good business?
This is an easy to run business with good systems in place and sufficient training and support from the franchisor. Good staff. Repeat customers.
What is the price plus stock and the net profit?
Selling price of R1.5 million includes very little stock as the business does not have to carry large amounts. Additional joining fee of R95 000 ex VAT is payable to Franchisor and includes training.
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