Fully describe the business's activities?
The owner /Franchisee works from home and sells Snap-On Hardware to the motor trade ( Branded Agencies like Ford, Mercedes Benz etc 0 workshops and panel beaters. He travels a fixed route very day, visiting his clients on his data base at least once a week. Minimal stock ( a few fast moving goods)is kept on hand and all stock orders are received overnight and delivered with next round or immediatly if urgent.
How long has the business been established?
Snap-on was established in the 1980's but the Port Elizabeth agency has been operational for 15 years.
How long has the owner had the business?
For 15 years
How does the business operate on a daily basis?
Owner has a fixed route for each day of the week, in an attempt to reach each client on a weekly basis.
How are the clients attracted to the business?
By cold calls to workshops and panel beaters not on his data base and excellent advertising through websites, magazines etc
What Advertising/Marketing is carried out?
Websites, magazines, branded vehicles and direct advertising to the industry.
Does the business have any contract work?
No contract work but regular clients.
What competition exists?
Limited competition from other hardware stores. Snap-On specializes in Auto industry hardware which the normal hardware shop does not provide.
What are the seasonal trends?
Constant sales throughout the year.
What is the total staff complement?
The Franchisee works on his own.
Give a breakdown of staff/ functions/ length of service?
Do any receive special perks or incentives?
Are they on contract?
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
The Franchizee works from home and no premises are hired.
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
The Franchisee work from 8 am to 5pm Mondays to Fridays.
What is the square meters of the business?
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
No licence is required.
What lease deposit and/or other surety is required?
The Franchisor has to approve you as a Franchisee and gives you a weeks training with opening store and repayment terms. No joining fee is required.
What are the main assets of the business?
The main Assets of the business is the branded panel van and the data base of clients.
Are any items not included in the sale?
The panel van and data base is included.
What is their overall condition?
The panel van has high kilometer reading but in excellent running condition.
Do any require repairing?
No repairs required at this stage.
How have they been valued ?
The panel van has been valued by the local Mercedes Agency.
Which assets are on lease/HP and with whom?
No assets or equipment on lease or HP.
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
The vehicle i currently insured.
Established agency, profitable and priced to sell. There will always be a demand for the products.
limited competition from other hardware stores
A great opportunity to obtain an established and profitable business. This business is priced to sell with a Return on investment of almost 50%
No threats and limited competition.
What is the reason for the sale?
Owner wishes to retire.
Why is this a good business?
Profitable, work from home, no stock is carried and work alone.
Annual Turnover Amount between R 500 thousand and R 6 million