Fully describe the business's activities?
Steers, Fishaways and Debonairs fast food outlet.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Food is prepared fresh daily, served as takeaways, collected or delivered for three brands.
How are the clients attracted to the business?
Situated in popular centre with established customer base and visible signage.
What Advertising/Marketing is carried out?
Franchisor advertises extensively on national TV and other media. Prominent signage on the shop front in busy centre.
Does the business have any contract work?
What competition exists?
Usual fast food outlets in centre
What are the seasonal trends?
Usually quieter over Christmas when people go on holiday, otherwise steady.
Is the business VAT Registered?
What VAT documentation is on file?
Returns for due diligence
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
40% cash. 50% card, 10% online.
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Hands on owner involvement can reduce food and maintenance costs and improve general performance and profitablity.
Is Seller finance available and for what amount?
What is the payback period?
What is the ROI?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
4 managers 6 front of house (cashiers) 17 back of house (chefs etc) 5 delivery drivers
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?
Overseas daily operations of this and other businesses, so not involved enough.
When does the current lease end?
Is there an option of renewal & what period?
Yes - can be negotiated
What is the annual escalation %?
What are the trading hours?
8 am to 9 pm
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
2 month's rent
What are the main assets of the business?
Signage, counters, table, chairs, equipment and 5 deliver bikes
Are any items not included in the sale?
What is their overall condition?
Fair to good
Do any require repairing?
How have they been valued ?
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
Well known national franchise brands with established procedures and loyal customer base
Seven day a week business, requiring management staff to assist in operation. General economic conditions.
With more owner involvement, savings can be made in food costs as well as general maintenance and operating costs.
None perceived, other than economic.
What is the reason for the sale?
Owner has too many other businesses and cannot give sufficient attention to this one.
Why is this a good business?
Established brand selling at less than the cost of new startup. Trained staff and managers already in place and great location. A major R1.5m revamp carried out in November 2017. Subject to franchisor approval, this venue could be converted to Halal (at purchaser's expense).
What is the price plus stock and the net profit?
Price as a going concern (zero rated for VAT to registered buyer) is just R4.180,000 plus stock (at cost) estimated at R60,000. Additional joining fees payable to the franchisor amount to R191,860 (exc. VAT) for the three franchise brands.
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