Fully describe the business's activities?
SA's Premium Brand voice and data sales and service store located in busy shopping centre alongside the anchor tenant. The franchise specializes in contract and prepaid sales of handsets, tablets, laptops, modems, a range of approved accessories as well as fiber line applications. Sim swaps, device insurance and a range of value added services are some of the income generating add-ons.
How long has the business been established?
How long has the owner had the business?
Since inception .
How does the business operate on a daily basis?
The store has an admin manager in place with staffing whom are jointly responsible for the day to day activities. The owner conducts frequent checks and visits to store . The head office field marketers and regionals visit the store as per their call cycles to ensure standards and compliancies are carried out consistently .
How are the clients attracted to the business?
The busy location and brand with its existing customer base . Clients are attracted to the brand based on loyalty ,service and quality of the network .
What Advertising/Marketing is carried out?
Too many to mention however some of the mediums carried out are TV and radio ads . Monthly catalogs /flyers and sms marketing.
Does the business have any contract work?
What competition exists?
The other 3 network providers .
What are the seasonal trends?
Busy throughout the year with significant spikes in sales over the holiday periods and Black Friday .
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation are on file and can be made available to approved buyers at a due-diligence stage .
Are there up-to-date Management Accounts available?
Yes for 2018
What Balance Sheet and Income Statements are available?
2017 and 2018
What percentage of the business is cash/credit?
40% Cash 60% card
What is the total staff complement?
Six staff including the Manager .
Give a breakdown of staff/ functions/ length of service?
Admin Manager 6 years Sales and service staff between 6 and 9 years Data specialist 4 years
Do any receive special perks or incentives?
Yes . Staff receive commission on sales . External Incentives are paid directly to staff from the device manufacturers .
When does the current lease end?
October 2019 . Franchisor owns the lease . No sub-lease agreement with Franchisee /Dealer . Refer to Dealer Agreement .
Is there an option of renewal & what period?
Yes for 5 years
What are the trading hours?
Monday to Saturday 9-6 Sundays 9-5
What is the square meters of the business?
Approximately 99 SQM
Is a copy of the lease available?
Refer to Dealer Agreement .
Do you require a licence?
What lease deposit and/or other surety is required?
No lease deposit is required .Refer to Dealer Agreement in respect of sureties .
What are the main assets of the business?
Fixtures ,fittings ,equipment ,CCTV .
What is their overall condition?
All in excellent condition.
Do any require repairing?
None require repairing .
How have they been valued ?
As per Franchisor Valuation model .
Are they presently insured?
Brand equity and existing customer base generating annuity income which will be transferred to new owner . Sole rights to the Network in the mall .
None perceived .
Focus on B2B initiatives and growing the ever demanding fibre line side of the business .
Usual competitor activities in the market place .
What is the reason for the sale?
Owner been involved in this business for the past 8 years and has built up a substantial customer base . He now wishes to consolidate some of his businesses to ensure he has more free time on his hands .
Why is this a good business?
Premium brand ,well known throughout SA generating annuity income to be transferred to new owner .
Annual Turnover Amount between R 500 thousand and R 6 million