Fully describe the business's activities?
The business is a popular franchise fast food, their menu consist of mainly Fish, chips and other fried foods at competitive prices. This franchise is situated in a popular Pretoria East strip-mall within a busy neighborhood and close big malls and other shops The business shows good profits with limited owner involvement. They have been successfully trading for the past 2 years and has rapidly grown since.
How long has the owner had the business?
The owner started the business in 2016. It has quickly grown to be a profitable store.
How does the business operate on a daily basis?
There are managers in the business, each working shifts. They will open the store and start the preparations. The managers are also responsible to cash-up and close the store. The owner also has a lady who assists her with the administration of the business . The business is mostly manager operated with limited owner involvement as they own several other stores. The owner is responsible for the general management of the financials, staff issues, ordering and making payments.
How are the clients attracted to the business?
The business is well-known in the area service good quality food. There are also signage boards on major roads in the area for more advertising.
What Advertising/Marketing is carried out?
The Franchisor does marketing on a group basis.
What competition exists?
There is no direct competition in the shopping centre servicing the same menu.
What are the seasonal trends?
During the school holidays business seems to be a bit slower.
Is the business VAT Registered?
Yes the business is a VAT-vendor
What VAT documentation is on file?
All VAT documents are on file with the owner.
Are there up-to-date Management Accounts available?
The owner provided us with in-house management accounts.
What percentage of the business is cash/credit?
50% Cash Sales 50% Card Sales
How could the profitability of the business be improved?
There is huge potential to improve the business by focusing on deliveries in the area.
What is the total staff complement?
9 permanent staff members.
Give a breakdown of staff/ functions/ length of service?
5 x kitchen staff 1 x manager 1 x supervisor 3 x drivers 3 x cashiers
Do any receive special perks or incentives?
Yes, management gets daily lunch.
Are they on contract?
Do any have management potential?
Yes there is a manager and supervisor in place.
How involved is the Owner in running the business?
There is limited owner involvement as they have various other businesses that they need to concentrate on. The owner oversees all payments, ordering and staff control.
When does the current lease end?
The current lease ends July 2019.
Is there an option of renewal & what period?
Yes there is an option for renewal for another term.
What is the annual escalation %?
9% annual escalation
What are the trading hours?
Monday - Saturday 10:00 - 20:00 Sunday 11:00 - 19:30
What is the square meters of the business?
The business is approximately 89 sqm.
Is a copy of the lease available?
Yes this can be provided.
Do you require a licence?
Yes a trading license and Franchise agreement
What lease deposit and/or other surety is required?
Current Lease deposit of R68 000.
What are the main assets of the business?
A full asset list will be provided which includes all the kitchen equipment, tables and chairs etc.
Are any items not included in the sale?
The ice cream machine will not be included in the sale and is the owners machine.
What is their overall condition?
Everything is in a good and working condition.
How have they been valued ?
Owners valuation has been used.
Which assets are on lease/HP and with whom?
Are they presently insured?
Yes, the business has comprehensive business insurance.
- Well-known franchise serving good quality food; - No direct competition exist; - Good location and busy suburb; - Systems and processes in place; - The business has been growing rapidly since opening in 2016
- The owner mentioned that the entry and exit of the shopping centre is sometimes problematic.
- A new owner should focus more on expanding the food delivery side of the business as there is a great opportunity for growth.
What is the reason for the sale?
The owner has several other businesses that they would like to focus their attention on.
Why is this a good business?
This is a well-known franchise in a good location. They've been rapidly growing in the past few month with more room for growth should a new owner be actively involved in the business. The systems and processes are in place to be manager operated. Average Net Profit for the past few month between R30 000- R40 000.
What is the price plus stock and the net profit?
The Purchase price including stock is R900 000 with an average Net Ptofit of between R30 000 - R40 000.
Discover similar, inspiring businesses for sale
Annual Turnover Amount between R 500 thousand and R 6 million