Fully describe the business's activities?
Franchised take away offering sandwich and platters breakfast rolls, sandwiches, baked potatoes, salads and platters for functions.
How long has the business been established?
More than 13 years ago.
How long has the owner had the business?
Purchased the business in January 2018.
How does the business operate on a daily basis?
This is a Manager run business, with the assistance of a Supervisor. Food preparation is done in the morning and busy periods between 11am and 2pm.
How are the clients attracted to the business?
Established and known by residents / business sector. Freshly prepared food and able to delivery. Banting menu, which has become very popular.
What Advertising/Marketing is carried out?
The owner carries out no special marketing, most marketing is done by Head Office. Menu drop and local marketing is done by the drivers. Various promotional boards are located in the business.
What competition exists?
No other similar competitor in the area.
What are the seasonal trends?
Due to the business being located in a commercial and business area, the business does slow down over December and January period.
Is the business VAT Registered?
The business is VAT registered.
What VAT documentation is on file?
Yes for due diligence.
Are there up-to-date Management Accounts available?
Trading accounts compiled by the owner are available from March 2018 to October 2018. Royalty sales reports are available for 12 months and further back from Franchisor for due diligence.
What Balance Sheet and Income Statements are available?
Year ending Feb 2017 are on file. This how includes some capital purchases and owner expenses. The true profitability is not relected in the AFS.
What percentage of the business is cash/credit?
80% Cash, 20% Credit Card.
What is the age analysis of the debtors book?
They have 10 accounts with corporates on 30 day.
How could the profitability of the business be improved?
Could open on weekends and offer platters for parties / functions.
Is Seller finance available and for what amount?
No seller finance is available.
What is the total staff complement?
15. 6 kitchen, 5 drivers, 2 cashiers (teller) , 1 store and 1 Supervisor
Are they on contract?
Yes permanently employed with contracts. Up to date with labour and minimum requirements.
Do any have management potential?
Yes the Teller Supervisor who is currently in training.
How involved is the Owner in running the business?
Involved remotely and spends 50% day on a daily basis.
When does the current lease end?
Lease ends in December 2022.
Is there an option of renewal & what period?
What is the annual escalation %?
The escalation is 9% per annum.
What are the trading hours?
Monday to Friday 7.30am to 4.30pm.
What is the square meters of the business?
100 square metres
Who is the Owner/Landlord?
See lease info
Is a copy of the lease available?
Yes for due diligence.
Do you require a licence?
Erkhuleni Health Depart COC
What lease deposit and/or other surety is required?
2 months deposit
What are the main assets of the business?
A full asset list comprising 6 motor bikes, catering and other office equipment is available.
Are any items not included in the sale?
All items on asset list are for sale.
What is their overall condition?
Condition is good as some were recently replaced ie 4 motor bike 2018 registration.
Do any require repairing?
None at present.
How have they been valued ?
Are they presently insured?
All assets are insured with Benneton Brokers.
Established more than 13 years ago and owners have built up a recognized name in the area. Greta location with high population and many businesses and corporates in the area.. Favorable operating hours and open 5 days a week. Year on year average clients grown from over 100 clients a day +- 80 to 100 and average daily turnover grown from +-R8k to +-R12k per day. Serving over 2000 sandwiches a month. Owner purchased 4 brand new delivery bikes. The Franchisor has 45 Branches countrywide.
Requires good oversight by the owner to ensure food costs remain low and to provide quality product and service.
Large area to market. Could open on Saturdays and offer platters for functions / parties. The addition of Gas and Convection Oven will greatly reduce costs. The Owner would have done so if he was not selling. Currently running at 44% cost of sales without full owner involvement. Can be reduced to 40% COS.
Maintaining food cost, staff cost and petrol price increases.
What is the reason for the sale?
The Owner is emigrating to UK in 2019 and has started planning for the event.
Why is this a good business?
Established business with favorable operating hours. Well known brand. Excellent menu and prime location.
What is the price plus stock and the net profit?
Royalties payable are 6% plus 2% for advertising. R65000 training and takeover fee payable to Franchisor.
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