Fully describe the business's activities?
This is a Pizza Perfect Franchise. The outlet has been re-vamped and is the new look. It is situated in a strip mall with easy access and 40% of total turnover is derived from deliveries which is standard for the Industry. The current owners son is managing the business at this point. Discussions will need to be entered into in order to decide if he will stay, but possibly not.
How long has the business been established?
How long has the owner had the business?
For the past 12 months
How does the business operate on a daily basis?
The outlet is opened by the manager in the morning, preparation starts and business continues from there. 40% of total business is done through three delivery scooters. The rest are calling customers.
How are the clients attracted to the business?
The current owner and his wife are very involved and ensures that all standards are met. They however do not open the outlet in the morning, but cash up in the evening.
What Advertising/Marketing is carried out?
This is purely done by the Franchisor at this point in time.
Does the business have any contract work?
Not at all.
What competition exists?
There are competitors in the area, but non in close proximity.
What are the seasonal trends?
The business has been showing steady growth over the past year on a month to month basis, so there is a very clear upward trend. However December and Easter periods are certainly better trading months.
Is the business VAT Registered?
Yes it is.
What VAT documentation is on file?
All are up to date.
Are there up-to-date Management Accounts available?
Yes as decent set of management accounts are in place. At time of due diligence numbers can also be verified on the in-house point of sale system.
What percentage of the business is cash/credit?
The business is all cash/ credit card
How could the profitability of the business be improved?
The business has during the last week activated Uber eats"", which will be a very positive injection on the sales side.
Is Seller finance available and for what amount?
What is the total staff complement?
Give a breakdown of staff/ functions/ length of service?
Staff have various functions in the store, consisting of Bakers, Assemblers, Stock control, and people who focus on preparing subs and wings.
Do any receive special perks or incentives?
Yes, transport, food subs etc. which is all contained i the current expenses.
Are they on contract?
Some are, other are on temp contracts
Do any have management potential?
Yes, a supervisor is in place. There is a manager in place, discussions will have to be entered into in order to decide if he will stay or not. His expenses are included in the numbers provided.
How involved is the Owner in running the business?
The owner and his wife are very involved to ensure a quality product is delivered to their clients.
When does the current lease end?
Is there an option of renewal & what period?
Yes for a further 5 years
What is the annual escalation %?
What are the trading hours?
10Am to 09pm
Who is the Owner/Landlord?
Is a copy of the lease available?
Do you require a licence?
Approval from Franchisor
What lease deposit and/or other surety is required?
What are the main assets of the business?
Ovens, fridges, counters, point of sale, tables chairs etc etc.
Are any items not included in the sale?
Yes, a Freezer
What is their overall condition?
Do any require repairing?
How have they been valued ?
By the owner
Which assets are on lease/HP and with whom?
Are they presently insured?
Yes they are.
The business is well situated in a mall but with easy access from the parking area. It service both middle and upper income areas. It has been growing steadily Profitability is good for the investment into this business. The franchise brand is strong and no monthly Royalties are payable.
To add additional scooters for deliveries To do additional marketing on social media
The owner and his wife are very present to ensure quality is delivered. Should the new owner not be involved it could affect the business.
What is the reason for the sale?
This outlet is about 30 km away from where the current owner lives. They have an opportunity to purchase an outlet 2,5km from home, hence the reason for selling.
Why is this a good business?
Good looking outlet that has been re-vamped. Good staff in place and the business has shown good constant growth.
What is the price plus stock and the net profit?
Just walk in and start trading, no changes needed to achieve good numbers. Just keep up the standards.
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