Fully describe the business's activities?
The business is a popular franchise fast food business situated in a excellent part of Pretoria. They have been successfully trading for the past 8 years and has grown to one of the best stores in their franchise group. They sell fish and chips and various other meals at competitive prices. They have a large customer base consisting of mostly students. The owner has implemented great systems and does not need to be at the business on a daily basis.
How long has the business been established?
The owner started the business in 2009.
How does the business operate on a daily basis?
There are three managers in the business, each working shifts. They will open the store and start the preparations. The managers are also responsible to cash-up and close the store. The owner also has a lady who assists her with the administration of the business . The business is mostly manager operated with the owner supervising the employees once or twice a week. The owner is responsible for the general management of the financials, staff issues, ordering and making payments.
How are the clients attracted to the business?
The business is ideally located close to universities, colleges and offices which contributes to a loyal customer base. They have a lot of regular customers and receive a lot of passing trade.
What Advertising/Marketing is carried out?
The owner does monthly pamphlet drops and pavelight advertisements. They also have active social media accounts to advertise specials and create awareness for the business.
What competition exists?
They have the normal competition in the food industry, but no business close by serving the same type of food that they do. The food franchises close-by compliment the business and insures a lot of passing trade and walk-ins.
What are the seasonal trends?
The business is thriving throughout the year with December being a quieter month.
Are there up-to-date Management Accounts available?
We have the last 12-months income and expenses available for the business and can be reviewed by a potential buyer.
What percentage of the business is cash/credit?
The business is 80% cash sales with 20% paying by card.
How could the profitability of the business be improved?
The business are currently run with great systems and the new owner can focus on doing more deliveries in the area.
Is Seller finance available and for what amount?
This will not be available for this business.
What is the total staff complement?
The total staff complement in the business is 18.
Do any receive special perks or incentives?
The staff all receive a basic salary and the owner will pay them a bonus in December, however this is based on the owners own discretion and staff performance.
Are they on contract?
Yes, all staff are on contract.
Do any have management potential?
The owner has 3 managers in place and are very happy with their work performance.
How involved is the Owner in running the business?
The owner is not involved in the day-to-day operations of the business and the managers takes care of the daily duties. The owner is responsible for any payments, ordering new stock, discussions with the Franchisor and the monthly financial management.
When does the current lease end?
The lease agreement was renewed in 2016.
Is there an option of renewal & what period?
There will be an option to renew the lease.
What is the annual escalation %?
Annual escalation is 9.2%
What are the trading hours?
Monday - Sunday 09:00 - 23:00
What is the square meters of the business?
The business is approximately 233 sqm.
Is a copy of the lease available?
Yes, this will be available.
Do you require a licence?
Yes, the needs the following licenses: - Trading License; - Health and Safety License; - Pest Control.
What lease deposit and/or other surety is required?
Lease deposit will be approximately R53 437.
What are the main assets of the business?
A full asset list of the business will be provided.
Are any items not included in the sale?
All items will be included in the sale of the business. Owners personal laptop printer and other assets will be identified.
What is their overall condition?
All assets are in a good and working condition.
Do any require repairing?
None of the assets need to be repaired.
How have they been valued ?
We have used the owners valuation of the business.
Are they presently insured?
Yes, the business assets are comprehensively insured.
- Established Fast Food Franchise in a busy part of Pretoria close to the Universities an colleges. - One of the best Franchise outlets in the Group. - Great systems in place with minimal owner involvement. - Great location.
Business tends to be quite during December when all the students are on holiday.
- The business can expand their marketing efforts as well as doing more deliveries in the area.
What is the reason for the sale?
The owner would like to focus on other business activities.
Why is this a good business?
This is a well established business in a excellent part of Pretoria, attracting a great deal of walk-in clients. The business is one of the best outlets within the franchise group. Limited owner involvement in the daily operations of the business. Don't miss out on this opportunity.
What is the price plus stock and the net profit?
The selling price is R2 420 000 with an average net profit of R64 547.
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