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Annual turnover

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  • Mandate: 31250
  • Added: 15 Aug 2017
  • 1055

Profitable "recession proof" franchise business on the KZN South Coast

KwaZulu-Natal, South Coast
1055
Mandate 31250
Added 15 Aug 2017
R 1,640,000* ZAR
Stock: R 740,000
Assets: R 376,000
R 47,721 ZAR
Malcolm Keevy
(PRINCIPAL)
Aldes Lower South Coast
KwaZulu-Natal
KwaZulu-Natal
Summary

Highly profitable retail franchise, part of a network of over 100 stores nationally. Proven systems in a retail concept that meets the needs of an owner wanting a strong return on working capital.

Profitable "recession proof" franchise business on the KZN South Coast
SELLING PRICE
R 1,640,000* ZAR
Stock: R740,000
Assets: R376,000
R 47,721 ZAR
Summary

Highly profitable retail franchise, part of a network of over 100 stores nationally. Proven systems in a retail concept that meets the needs of an owner wanting a strong return on working capital.

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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 metres.

How long has the business been established?
The franchise was established in the 1990's and has over 100 operations nationwide. This specific outlet was established in 2012.

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

How does the business operate on a daily basis?
The business is highly profitable as a result of owner focus and an economic climate conducive to trading in new and used goods.

How are the clients attracted to the business?
The outlet is located in a busy shopping precinct with a significant footfall. In addition the national franchisor maintains brand awareness through consistent marketing activity.

What Advertising/Marketing is carried out?
National and local advertising and promotional campaign across a range of media.

What competition exists?
Minimal competition exists

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

Are there up-to-date Management Accounts available?
A full set of management accounts will be made available to a serious buyer. Due to the operation being part of a national franchise, accounts are validated on a regular basis.

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

What is the total staff complement?
Six members of staff including a manager. The manager has the requisite skills to ensure correct buying. There is a high level of review from the owners to ensure security of operation. Staff are one month contracts. The majority of staff have been with the owners from the outset of acquiring the business.

When does the current lease end?
The current lease runs to 2020 with favourable resigning terms.

What is the annual escalation %?
The current escalation is 10% p.a

What are the trading hours?
The business trades seven days a week, during normal business hours.

What is the square meters of the business?
Approximately 200 square metres

Is a copy of the lease available?
Yes

What are the main assets of the business?
The high traffic location and the national brand name. An asset list is available to serious buyers.

What is their overall condition?
Good

How have they been valued ?
Owners best estimate

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 cover on the store

Strengths?
Strong, recognisable franchise with national awareness; Excellent local reputation; High traffic location; Convenient location with parking; Suitable economic climate;

Weaknesses?
No discernible weakness

What is the reason for the sale?
Recent health problems have caused the owners to reconsider their lifestyle priorities

Why is this a good business?
The business is highly profitable and not complex to operate. Working capital requirements are low and yield excellent returns.

What is the price plus stock and the net profit?
R900 000 plus R740 000 in stock

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FRANCHISE DETAILS

Aldes Lower South Coast

2 members
9 active mandates
KwaZulu-Natal
Southbroom
4285

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