Fully describe the business's activities?
Buddy bear is a "Bear/Animal Building" business, that is Trademarked in SA, that provides an exciting experience for children, as they choose, the animal, skin, heart, voice, name, outfit, & accessories. The display/sale/building process, can range from being based at a shop/cart/online/parties/schools/events etc, with the building process including some equipment if the turnover at that point (eg a shop) supports such, otherwise the process is merely done by hand. This business/franchise opportunity at R980 000, is inclusive of the presently stored - : stock which was sourced both locally & from overseas/China; equipment & displays which were made locally; inter-active shopping website; & SA Trademark. It is noted, that although this business operated for some 10 yrs with up to 10 franchisee's, the owners focus in the Tourism Industry, led to the closure of the business & thus it's sale as a " New Opportunity" to be RE-STARTED ! The past proved to be successful ! Are you the person who is energised to realise the potential of this opportunity either in the full ownership or Franchise model ? With everything at hand, the business can be up & running in 1 week.
How long has the business been established?
It was started by the Seller in 2003, but closed in 2015 & is now on sale to be " re-started" with stock & equipment, which is in storage & only requires a sprucing-up/lick of paint. The website is active & ready for takeover/income generation.
Are there up-to-date Management Accounts available?
As this business ceased to operate in 2015, there are no financials. It is noted that the Sale Price (R980 000) is based however on the inward/invoice price of the stock, depreciated equipment, website & Trademark (over R1m) . All of this is presently in storage in Durban, and with a touch-up/lick of paint would be ready to operate within a week GP of R1.3m on the stock alone.
What is the total staff complement?
As the business is not operating, there are no staff at the moment. Under the past Franchise model, the Franchisor with only an assistant, operated the business, controlling : suppliers, stock, dispatch to Franchisee's, website-marketing. The Franchisee's, mainly operated by themselves with no staff, conducting parties/events etc. The few shops/pop-up-shops-carts were operated with hired-in staff.
Premises / Point of Sale
In the past, the business operated where the Franchisor controlled the online sales, while the Franchisee's (10 over 5 years) operated from stores, carts & home, as well as, attending schools/parties/events/etc . It is up to the Purchaser to decide whether to manage everything or proceed as above and Franchise any/all parts thereof. It is re-iterated that this business does not function at the moment & thus has no premises.
What are the main assets of the business?
All the below is presently in storage in Durban. Stock : animal, skin, stuffing, heart, voice, name, outfit & accessories, etc - Valued at inward invoice pricing of R700 000 (but retail pricing at R2m, thus a R1.3m GP just on the stock) - all in excellent/saleable condition. Equipment : 2 blowing/stuffing machines (big & small), display drawers, bear cut-out displays, stands/tables, etc - valued at some R50 000 (while new would be around R300 000) - all would require a good make-over/re-paint (1 week). Website : interactive shopping/party website & still functions Trademark : of Buddy Bear in South Africa.
Tested model that worked in the past & just needs new energy All equipment, stock, website & Trademark are available (in storage in Durban) to re-start this business opportunity (only 1 week to touch-up the displays/machines) The Seller (based in Durban) will assist any Purchaser from a strategy, product, marketing & supplier, point-of-view.
That the business needs to be Re-started; although it's tested model, stock, equipment, website & Trademark are available to commence operation, literally immediately.
The Purchaser may operate this whole business OR use the Franchise model, as in the past, where the Franchisor controlled the online sales & the Franchisee's (10 over 5 years) operated from stores, carts & home, as well as, attending schools/parties/events/etc Apart from the present markets, the Purchaser could focus on previously tested corporate/sport/ fund-raising opportunities
That other persons realise there is a gap in the market & from-scratch, start up this sort of venture, although they would need to attend to so many issues, such as : suppliers; products; equipment; displays; website; strategies; etc
What is the reason for the sale?
The owner has decided not to restart this venture after having closed it as her interest was diverted into the tourism industry.
Why is this a good business?
All equipment, stock & Trademark are available to re-start this business opportunity geared at the kids stuffed-toy market. The purchaser only pays for the inputs, while the Seller (based in Durban) will assist any Purchaser from a strategy, product, marketing & supplier, point-of-view. The Purchaser can decide whether to operate the whole business model Or revert to the Franchise model.
What is the price plus stock and the net profit?
The Sale Price is R980 000, inclusive of equipment, stock, website & SA Trademark. The business is not operating at the moment and the Purchaser will need to re-start the business.
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