Fully describe the business's activities?
Franchised vehicle fitment center that specializes in tyres (passenger, truck and agricultural), wheel alignment, shocks, batteries and exhausts. Stock from various suppliers, is normally ordered as required on a needs only basis, although certain fast moving goods are kept at hand. Call/drive-in's are attended to, quotes provided and service delivered by the well trained staff. Most clients pay by cr card (60%) or cash (40%) on site.
How long has the business been established?
8 yrs, with the last 2 being under this owner
How are the clients attracted to the business?
Well established & known franchised fitment centre, with little competition, good service, resulting in loyal customers & word of mouth referrals. The business is highly visible on a main road intersection & next to a main shopping centre, with highly visible branding.
What Advertising/Marketing is carried out?
Does the business have any contract work?
What competition exists?
The closest franchised competitor is some 7 km's away
What are the seasonal trends?
December tends to be the busiest, at some 30% higher that the other months which are reasonable stable
Is the business VAT Registered?
Yes with all info on hand
Are there up-to-date Management Accounts available?
MA's are very detailed and derived off Spiral Software, being in line with the Franchisor financials. This REPORT is drawn up with Jan to Dec 2018 MA's. Addbacks, include extra income not related directly to the Fitment Centre and the owners benefits, to obtain Total Earnings for the owner of R561 000 for the R4m financial year under review. No Franchise re- singing fees & monthly fees are covered within expenses.
What is the total staff complement?
4 : excluding the owner who manages the business Technician, 2 x fitters, 1 repairer (2 salaried & 2 wages) all well trained & 3 have service periods just under 10 years each
When does the current lease end?
The premises are some 700m2, at R23 000pm, with an 8% escalation, which can be renewed at the end of 2019 for 2-3 years. 2 months rental deposit required.
What are the main assets of the business?
1 small vehicle (R25 000). 23 various equipment items (incl hoists, balancers, jacks, compressors), and numerous tools - all in good working condition - worth some R100 000 on a forced sale basis vs some R500 000 on a 2nd hand sale basis. All paid up & included in the Sale Price
1. Long established with a high visibility on a main intersection next to a large commercial centre 2. Well known franchise with national exposure & brand awareness 3. Little competition 4. Staff are well trained & competent
No marketing or own website
Expand product range & services
That other competition might enter the market - although they would need to build up a client base from zero
What is the reason for the sale?
Owner is returning to his previous industry/work
What is the price plus stock and the net profit?
Well priced long established Franchised Fitment Centre at R1.09m (excl stock of R85 000), on a turnover of some R4m & a NP to the owner incl his benefits of R561 000pa.
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