Fully describe the business's activities?
EMS Fitness Franchise for sale in Pretoria East. The business is a fairly new concept which is growing immensely in the South African market. The business has at least 70 active memberships and growing monthly. Well trained staff members with huge scope for growth.
How long has the business been established?
The owners started the business in 2016.
How does the business operate on a daily basis?
The owner is at the business on a daily basis. She is more focused on the overall management of the business and attending to administrative tasks. There are two trainers in the business who attends to training sessions with the clients.
How are the clients attracted to the business?
The franchise is well known in the industry and the seller has built up a good client base. They also make use of social media platforms and street pole advertising around the area.
Does the business have any contract work?
Clients sign either a 6/12 months membership contract.
What competition exists?
There are similar franchises in the area.
What are the seasonal trends?
In this industry the busiest time is usually in January and in the summer time. Winter tends to be a bit slower on new member intakes.
Is the business VAT Registered?
Are there up-to-date Management Accounts available?
The owner provided us with the last 12-months income statements from her internal system
What Balance Sheet and Income Statements are available?
The February 2018 Financial Statements are on file.
What percentage of the business is cash/credit?
All clients pay via debit order each month.
How could the profitability of the business be improved?
- More marketing on social media platforms; - Joint marketing/voucher with other suppliers; - Providing free sessions; - Doing events/expo's.
Is Seller finance available and for what amount?
What is the total staff complement?
2 x permanent staff members/trainers During summer time she increases the trainers to 3.
Do any receive special perks or incentives?
The staff receive a basic salary and commission on the successful sign up of a new member.
Are they on contract?
Do any have management potential?
Yes, one staff member can do some managerial duties.
How involved is the Owner in running the business?
The owner is at the business on a daily basis attending to administrative tasks and overseeing the overall management of the business.
When does the current lease end?
Is there an option of renewal & what period?
Yes the is an option to renew for another 3 years.
What is the annual escalation %?
What are the trading hours?
Weekdays 05:30 - 19:30 Saturdays 06:00 - 14:00
What is the square meters of the business?
Is a copy of the lease available?
Yes - This can be provided.
Do you require a licence?
Yes, you would need to get approval from the Franchisor as well as a annual license to play music.
What lease deposit and/or other surety is required?
3 Months rental
What are the main assets of the business?
A full asset list can be provided to an interested buyer.
Are any items not included in the sale?
Everything will be included in the sale.
What is their overall condition?
Everything is in a good and working condition.
How have they been valued ?
Owner provided us with accurate value for the equipment.
Which assets are on lease/HP and with whom?
One of the EMS devices are on a hire purchase agreement.
Will Seller settle or Buyer to take over?
The buyer would ideally take over the monthly installement.
Are copies of agreements available?
Are they presently insured?
Yes the business is comprehensively insured.
- Good client base; - Great location; - New innovative concept; - Growing industry.
- Seasonal business.
- Active marketing through several social media platforms.
What is the reason for the sale?
The owner is exploring the opportunity to immigrate in the near future.
Why is this a good business?
- Good location - Profitable - Good client base - Scope for growth
Annual Turnover Amount between R 500 thousand and R 6 million