Fully describe the business's activities?
Steers fast food franchise
How long has the business been established?
With current owner since 2011
How long has the owner had the business?
How does the business operate on a daily basis?
Shop opens at 9 am and food prepared, served, collected or delivered all day long
How are the clients attracted to the business?
Major brand advertising on TV and elsewhere. Located in popular shopping mall and the only store offering delivery in the area.
What Advertising/Marketing is carried out?
National TV and other media advertising, prominent signage
Does the business have any contract work?
What competition exists?
Usual fast food outlets
What are the seasonal trends?
No major variation during the year
Is the business VAT Registered?
What VAT documentation is on file?
VAT returns for due diligence
Are there up-to-date Management Accounts available?
Yes to Feb 2018
What Balance Sheet and Income Statements are available?
What percentage of the business is cash/credit?
No credit given. 40% is cash, 50% credit card and 10% online payment
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Owner operator and increase deliveries
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?
1 manager 2 front of house (cashiers) 5 kitchen staff Length of service varies
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 the daily running but not directly involved
When does the current lease end?
Is there an option of renewal & what period?
Yes - to be nogotiated
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 months rental
What are the main assets of the business?
Normal kitchen equipment, signage, counters, fridges. freezers.
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?
Part of the Famous Brands Group, Steers has a huge customer base and national footprint offering top quality at a fair price
Seven day a week, as with most major food franchises. This store is due for a revamp (which is required every 5 years) at approx cost of R250-300k. Seller will contribute 50% of revamp cost.
Owner operator can effect savings on purchases and operational costs
What is the reason for the sale?
Owner is overstretched with other businesses
Why is this a good business?
A low cost entry to this major franchise, which is a good stepping stone to larger. similar franchises, once familiar with the operating procedures.
What is the price plus stock and the net profit?
Price is just R1,100,000 excluding stock of approximately R 20,000 sold as a going concern (zero rated for VAT) to a VAT registered buyer. A condition of the sale of this franchise is that the store will undergo a revamp at an approximate cost of R250 - R300k. The seller will contribute 50% of the revamp cost. There is a franchise joining fee payable to franchisor of R67840 (exc. VAT). Net profit
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Annual Turnover Amount between R 500 thousand and R 6 million