Fully describe the business's activities?
This is an award winning advertising based business that promotes the advertised material to a captive audience with the result that it is very easy to sell the advertising and many of the franchises sell out their quota of adverts within the first couple of months in the year. The issue then becomes one of cashflow management and budgeting effectively for the remainder of the year. As there are 56 adverts per franchise, effectively you need to sell 112 slots per annum which works out at 4.67 adverts per month, or 0.2 of an advert per working day in a 5 day week. Apart from selling the advertising space, the only other demand on the franchisee is to visit each site twice a month to check that the installed system is operating and to load the latest adverts onto the system - there are a total of 7 sites. The clients may change their adverts once a month; the franchisor handles all the related artwork and the franchisee is the liaison person. As can be seen, the advertisers get a great deal as their ad is shown across 7 sites by default or 14 or 21 if they elect to go on two or three franchises - this makes selling of the advertising very easy. PLEASE NOTE â The figures presented are based on the owner doing all the work and a forecast of the revenue with all ads sold. The running expenses are in line with those recommended by the franchisor.
How long has the business been established?
This franchise was established in 2011
How long has the owner had the business?
The current owner bought the business at the beginning of 2016
How does the business operate on a daily basis?
The owner needs to make appointments with potential advertisers and handle the related admin, as well as popping into each site twice a month
How are the clients attracted to the business?
The franchisor has a website which attracts inquiries for the various areas, but aside from this the owner needs to approach potential advertisers. Intensive training is provided, in which the first 3 ads are sold by the franchisor who is accompanied by the franchisee, so the owner is fully equipped by competion of training, to sell.
What Advertising/Marketing is carried out?
There is a web site for the franchise and each site has an advertising board attracting future business. Aside form this, the franchisee markets the business personally
Does the business have any contract work?
Each client signs a one year contract
What competition exists?
No other business targets the same market as this business.
What are the seasonal trends?
Depending on how you decide to structure your time, the turnover can be made in a short period of time, or regularly throughout the year. No noticeable seasonality in terms of demand.
Is the business VAT Registered?
No - below the threshold
Are there up-to-date Management Accounts available?
Yes. Figures in our report are forecasts based on all slots being sold (and all income attributable to the new owner). You would be purchasing the business with some slots unavailable for the remainder of the year and this has been taken into account in determining the asking price.
What percentage of the business is cash/credit?
Most businesses pay in advance for a one year contract
How could the profitability of the business be improved?
The new owner should be organised and self-motivated. Once the ad slots are all sold you would have to purchase a new franchise to increase profitability
Is Seller finance available and for what amount?
Cash buyers only
What is the total staff complement?
No staff. This business is owner run
When does the current lease end?
No premises - this is a work from home opportunity
What are the trading hours?
Hours are flexible
Do you require a licence?
What are the main assets of the business?
Electronic equipment - full list available
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
Repairs are required from time to time, these are carried out by the franchisor
How have they been valued ?
Are they presently insured?
You are selling a proven concept with strong franchisor support. The franchisor has a carefully developed market.
If relationships with advertisers are not maintained then more work is required every year to resell the ad slots.
As a flip-side to the potential weakness listed above, if client relationships are properly established and maintained with regular contact and feedback, advertisers will automatically renew their subscriptions from one year to the next.
None other than economic circumstances, which can also be an opportunity, or an additional selling point, as these ad spaces are more affordable than many other options.
What is the reason for the sale?
The owners are preparing for emigration.
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