Fully describe the business's activities?
A franchised tyre fitment centre offering tyres, shocks, wheel balancing, exhausts, disc brakes and batteries.
How long has the business been established?
How long has the owner had the business?
How does the business operate on a daily basis?
Open for business from 8 am and providing services to drive in customers or by pre-order and booking.
How are the clients attracted to the business?
National franchise with branches throughout South Africa
What Advertising/Marketing is carried out?
Regular promotions by franchisor
Does the business have any contract work?
What competition exists?
Usual suppliers from other franchises and individual outlets
What are the seasonal trends?
Usually busier before the annual holidays
Is the business VAT Registered?
What VAT documentation is on file?
Returns on file
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
Yes to Feb 2019
What percentage of the business is cash/credit?
70% card, 30% cash
How could the profitability of the business be improved?
Opening more monthly accounts with regular customers
Is Seller finance available and for what amount?
What is the total staff complement?
5 staff, 2 of whom are permanent
Give a breakdown of staff/ functions/ length of service?
Alignment technician Exhaust Welder Driver 2 suspension fitters
Do any receive special perks or incentives?
Are they on contract?
3 are, 2 aren't
Do any have management potential?
How involved is the Owner in running the business?
When does the current lease end?
Is there an option of renewal & what period?
Yes - 5 years
What is the annual escalation %?
What are the trading hours?
Mon to Fri 8am to 5pm Saturday 8am to 1pm
What is the square meters of the business?
+/- 300 sqm
Is a copy of the lease available?
Do you require a licence?
What lease deposit and/or other surety is required?
2 months rent
What are the main assets of the business?
Are any items not included in the sale?
What is their overall condition?
Do any require repairing?
How have they been valued ?
Book value as at Feb 2019
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?
Positive customer service. Well known for custom exhaust work, Good relationships with suppliers over last 5 years. Considerable number of fleet customers who have been regulars over the years
Limited buying power due to size of the business. Financial planning limited
All required equipment on the premises, to supply all customers needs. Suppliers mostly within 10 kms radius so stock can be collected as needed. Location has been consistent for 20 years to residents are aware of the business.
Cheap Chinese tyres cutting into the premium brand market share. Economy puts strain on all persons, including staff who expect regular increases.
What is the reason for the sale?
Other business opportunities
Why is this a good business?
Located in a good position and well known in the area. A very popular National franchise with all systems in place.
What is the price plus stock and the profit?
Price as a going concern - zero rated for VAT to a VAT registered buyer is R1,400,000. Buyer will also be liable for a franchise joining fee of R60,000. Stock is kept at a minimum and is not included.
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