Fully describe the business's activities?
A franchised beauty salon offering facials, lash extensions, manicures, pedicures, waxing, gel and acrylic nails and massages.
How long has the business been established?
This franchise opened in May 2012.
How long has the owner had the business?
The owners started the business.
How does the business operate on a daily basis?
Existing and new clients book for beauty treatments. Various treatments are offered ranging from, facials, manicures, pedicures, waxing, washing and blow drying of hair and many more. Their current loyalty base is around 2,300 members and growing.
How are the clients attracted to the business?
This is a strong beauty salon brand where the franchisor constantly look at enhancing the brand with aggressive marketing. The store is located in a very popular mall on the west rand with excellent position.
What Advertising/Marketing is carried out?
The franchisor does most of the advertising and marketing. Monthly specials and promotions are offered.
What competition exists?
There are several competitors, and related competitors in the greater west rand, this store tend to compete with other franchise stores in the area as opposed to other brands or privately owned salons.
What are the seasonal trends?
October through to December are generally the busiest months.
Is the business VAT Registered?
Yes, the business is VAT registered.
What VAT documentation is on file?
VAT documentation will be made available during due diligence.
Are there up-to-date Management Accounts available?
Management accounts for the year ended February 2017 and March 2017 to August 2017 are on file.
What Balance Sheet and Income Statements are available?
Balance Sheet and Income statements will be made available during due diligence.
What percentage of the business is cash/credit?
80% credit cards, 20% cash, no accounts/credit given.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
The shopping mall is due to have an upgrade/refurbishment which will have a positive impact on the growth of the business going forward. First phase to be completed by 1st December 2017 and 2nd phase by 1 April 2018. With these positive changes the owners envisage a business primed to reach the benefits that are due, giving that a strong foundation has been laid over the last 5 years.
Is Seller finance available and for what amount?
The seller will look at reasonable offers.
Who is the bookkeeper/Accountant?
To be advised.
What is the total staff complement?
The total staff compliment is 9.
Give a breakdown of staff/ functions/ length of service?
1 x Front Desk Co-ordinator who runs the store together with one of the therapists who takes on a managerial role. 2 x Hybrids Nail Tech/Therapist Combo (one of these therepists is within the top 20 therapists in the group and also acts as store manager) 3 x Therapists 2 Nail Technicians 1 Salon assistant/cleaner (3 days per week) The store also make use of students or part timers over busy/pek periods
Do any receive special perks or incentives?
Only standard company benefits per Franchisor.
Are they on contract?
Do any have management potential?
The one therapisits takes the role as store manager.
How involved is the Owner in running the business?
In regularly for a few hours per day, except Sundays and Mondays.
When does the current lease end?
In process of signing renewal for 1 year September 2017 to September 2018.
Is there an option of renewal & what period?
Yes, 3 or 5 years.
What is the annual escalation %?
What are the trading hours?
Monday to Thursday 9am to 6pm Fridays Saturdays Sundays and Public Holidays
What is the square meters of the business?
Who is the Owner/Landlord?
To be advised.
Is a copy of the lease available?
Yes, a copy will be made available to serious buyers.
Do you require a licence?
No, only music license. Staff must be qualified.
What lease deposit and/or other surety is required?
A franchise joining fee of R125,000 plus VAT is required for a new buyer 2 months rental deposit is requred by the landlord
What are the main assets of the business?
Office, computer equipment and software Salon equipment for treatment rooms Kitchen equipment, washing machine, tumble dryer, microwave and bar fridge pedicure and manicure/nail stations shop front fittings
How have they been valued ?
The owners valuation on the asset list is R710,490
Are they presently insured?
The business and its assets are comprehensively insured.
Strong brand Store is located in a very popular shopping mall 5 year in existance well trained staff
Staff turnover. Maintaining the correct staff mix can affect the business.
To canvas Krugersdorp are, not yet explored. Office calls and pensioners.
What is the reason for the sale?
Owners are relocating to Cape Town.
Why is this a good business?
Good brand, Well established, loyal and well trained staff, 2,300 loyalty clients
What is the price plus stock and the net profit?
Price is R670,000 which includes stock of +/- R250,000
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