Fully describe the business's activities?
This is a new Franchise, which was originally opened in the Western Cape, and was set up in KZN two years ago. The business deals in frozen pastries, pies and a variety of confectionaries. Retailing of the product range is operated from a new store in The Upper Highway area. Orders are supplied to schools, commercial and corporate clients for hosting business functions. Weddings and other celebratory functions can aslo be supplied with this popular confectionary.
How long has the business been established?
How long has the owner had the business?
What development strategies are in place
There is scope to open further franchise branches within KZN. There is a plan to supply other retail outlets such as butcher shops, fast food outlets etc. with the frozen products range, for a wider client base to purchase.
How does the business operate on a daily basis?
Normal Retail times are applied by this outlet, namely 0830-1730 hrs during the week days and slightly less hours over the weekends. Saturdays 0830-1400 hrs and Sundays 0830-1300 hrs. Stock is kept in a walk in freezer and there are display cabinets within the shop that attracts walk in trade.
How are the clients attracted to the business?
Large signage (can be seen from the main access road) attract passing trade, with regular consumers word of mouth referrals keeping the daily activuty within the shop. New schools and commercial clients need to be contacted to grow that sector of the business.
What Advertising/Marketing is carried out?
website and social media advertising needs to be managed by the managers. Ocassional marketing is done via pamphlets and local press inserts.
Does the business have any contract work?
The business has a few Private Schools who utilize them on a monthly basis for their "tuck shop" stock and also for sporting functions such as rugby matches, galas etc.
What competition exists?
This is the only outlet of the National Franchise within KZN. There are no other frozen product confectionary outlets that have such a comprehensive range of popular products.
What are the seasonal trends?
The December holiday season attracts more sales and this can be extended to other festivities such as Easter and July holidays.
Is the business VAT Registered?
What VAT documentation is on file?
All files are with the owner
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
The latest AFS 's are with the mandating Broker
What percentage of the business is cash/credit?
50% cash and 50% credit card
What is the age analysis of the debtors book?
How could the profitability of the business be improved?
Increase sales to selected other food outlets by providing the product range to be installed into a freezer at the outlet such as a butchery or fast food retailer.
Is Seller finance available and for what amount?
What is the total staff complement?
Total staff is 4
Give a breakdown of staff/ functions/ length of service?
There is one manager who runs the shop and the replacement of stock holdings. He also drives the marketing of the new client sales. The remaining staff are shop assistants who ensure that the displsy cabinets are well stocked and are kept neat and clean at all times.
Do any receive special perks or incentives?
There is a commission structure in place with realistic targets to be met.
Are they on contract?
Do any have management potential?
There is a management structure already in place.
How involved is the Owner in running the business?
The owner has another career, but visits the operational functions of the shop at least once every week.
When does the current lease end?
There is a 3 year lease in place with a further 3 year option The lease expires in 2020
Is there an option of renewal & what period?
What is the annual escalation %?
What are the trading hours?
See above. Week days 0830-1730 hrs Saturdays 0830-1400 hrs and Sundays 0830-1300 hrs
What is the square meters of the business?
200 square meters
Who is the Owner/Landlord?
Is a copy of the lease available?
Yes It is with the owner
Do you require a licence?
What lease deposit and/or other surety is required?
1 month deposit
What are the main assets of the business?
A Large walk-in refridgerated room behind the counters. Display counters, good signage and an abundance of free parking.
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
they are only 2 years old so they are valued at replacement value Valued at R900000
Which assets are on lease/HP and with whom?
What are their settlement amounts?
Will Seller settle or Buyer to take over?
Are copies of agreements available?
Are they presently insured?
This is a new concept of selling frozen confectionary and it is the only franchise branch in KZN There is vast scope to market the product range in many other food outlets, which will increase the business's growth.
Too little exposure of what the product range is. More outlets need to be approached to display the products, such as a separate display/fridge within the butchery/food outlet
Open new Franchise branches. Set up display counters in othe food outlets. Visit more schools and more commercial/corporate companies.
What is the reason for the sale?
The owner is busy in his other business and does not have the time to develop this new franchise.
Why is this a good business?
New concept that is gaining popularity. Development into other KZN areas will escalate the market share and create new franchise awareness.
What is the price plus stock and the net profit?
49% Equity fat R750000, for a growing business is what is being sold. If some investor wanted 100 % of the business, then the seller is open for negotiation.
Annual Turnover Amount between R 500 thousand and R 6 million