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  • Mandate: 31238
  • Added: 22 Jun 2017
  • 689

Profitable "recession proof" franchise business on the Lower South Coast of Kwazulu Natal

KwaZulu-Natal, South Coast
689
Mandate 31238
Added 22 Jun 2017
R 1,610,000* ZAR
Stock: R 710,000
Assets: R 214,000
R 45,469 ZAR
Jane Diakakis
Aldes Lower South Coast
KwaZulu-Natal
KwaZulu-Natal
Summary

This franchise which has over 100 operations countrywide operates in two popular shopping centres of two well known coastal towns, in KZN lower south coast and as such, has a good foot traffic supporting the business. All the required licences are in place and this could be an exciting opportunity for a purchaser who wants to secure a well run, profitable business with excellent systems and product.

Profitable "recession proof" franchise business on the Lower South Coast of Kwazulu Natal
SELLING PRICE
R 1,610,000* ZAR
Stock: R710,000
Assets: R214,000
R 45,469 ZAR
Summary

This franchise which has over 100 operations countrywide operates in two popular shopping centres of two well known coastal towns, in KZN lower south coast and as such, has a good foot traffic supporting the business. All the required licences are in place and this could be an exciting opportunity for a purchaser who wants to secure a well run, profitable business with excellent systems and product.

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Fully describe the business's activities?
The profitable business is part of a well recognized franchise based on three successful profit models, namely; trading in ethically sourced secondhand goods, high quality new goods and secured loans. The stock figure includes a significant portion of secured loans which can be converted to cash in 30 days. The business is in a bustling town on the KZN south coast. The size of the store is approximately 200 square metres.

How long has the business been established?
The franchise has over 100 operations countrywide and was established in the mid 1990's. This specific branch opened in 2012.

How long has the owner had the business?
The current owners acquired this franchise in September 2016.

How does the business operate on a daily basis?
The business, as a result of its strong franchisor and the focus brought to the business by the current owner, reflects good profitability. The market conditions are conducive to improved sales as clients seek ways to improve their cash position

How are the clients attracted to the business?
The location is in a high traffic zone with strong visibility. In addition, awareness is driven by branding of the national franchisor.

What Advertising/Marketing is carried out?
National and local advertising campaigns

What competition exists?
Minimal competition exists

Is the business VAT Registered?
Yes, the business is VAT registered. There will be a transfer fee payable to the franchisor.

Are there up-to-date Management Accounts available?
There are detailed management accounts available for serious buyers. As the operation is a franchise these reports are validated by the franchisor on a regular basis.

Is Seller finance available and for what amount?
No seller finance available

What is the total staff complement?
Six members of staff including a manager. The manager has the necessary skills to ensure correct buying. The owners are involved at a high level of review on a daily basis via cameras and review systems. Staff are on contracts with one months notice and the majority of staff have been with the current owners from the outset when they applied for business.

When does the current lease end?
Business is located in a major and popular coastal town on the KZN lower south coast, in a well known shopping centre which boasts high foot traffic. The lease, which is at a competitive rental, runs until 2020 with an annual escalation of 10% and an option to renew thereafter.

What are the trading hours?
Business operates seven days a week, during normal trading hours.

Is a copy of the lease available?
Yes

What are the main assets of the business?
The high traffic location and the well established brand name. There is a list of fixed assets available to serious buyers.

What is their overall condition?
Good

How have they been valued ?
Sellers best estimate of market value

Which assets are on lease/HP and with whom?
No assets are on lease or HP

Are copies of agreements available?
Yes

Are they presently insured?
Assets are insured as part of the insurance on the store

Strengths?
Franchise within a strong and recognised brand; Excellent systems and controls; High traffic location with parking conveniently available; Good reputation in the local area;

Weaknesses?
No discernible weaknesses

What is the reason for the sale?
The current owners have picked up health problems and need to consider an alternative lifestyle

Why is this a good business?
This is a very good business and generates positive cash flow with minimal working capital. It is an ideal opportunity to secure a well run, profitable business on the KZN south coast.

What is the price plus stock and the net profit?
R800 000 plus R710 000 stock

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FRANCHISE DETAILS

Aldes Lower South Coast

2 members
9 active mandates
KwaZulu-Natal
Southbroom
4285

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