Aldes Business Brokers

Summary

Virtually new franchise, only opened in August 2011, owner is getting married and going to UK. This is London Pie's new style store with a much wider range of food offerings over and above the traditional pie menu, including Chip n Dip and a host of other items for sale. Very attractive store just needs owner operator to grow this business to higher profitability. If this is of interest please call Steve on 082 787 1400

1. History Background

Fully describe the business's activities?

Virtually new franchise, only opened in August 2011, owner is getting married and going to the UK. This is London Pie's new style store with a much wider range of food offerings over and above the traditional pie menu, including Chip n Dip and a host of other items for sale. Very attractive store just needs owner operator to grow this business to higher profitability. If this is of interest please call Steve on 082 787 1400

How long has the business been established?

Since August 2011

How long has the owner had the business?

Since inception

2. Present Market

How does the business operate on a daily basis?

Partner opens and does cash up daily

How are the clients attracted to the business?

Passing trade and franchisor advertising, plus there is a call centre above the business with about 90 staff

What Advertising/Marketing is carried out?

Franchise advertising plus signage at store with specials etc

Does the business have any contract work?

No

What competition exists?

There are a cafe's in the area but none as clean as this with the same food offering

3. Financial

Is the business VAT Registered?

No not required at this stage

Are there up-to-date Management Accounts available?

seller is preparing

What Balance Sheet and Income Statements are available?

List of assets will be drawn up

What is the age analysis of the debtors book?

All cash

How could the profitability of the business be improved?

Hands on operator, this is a new business and local advertising and deliveries would improve the turnover

Is Seller finance available and for what amount?

No

What is the payback period?

26 months

What is the ROI?

46%

4. Staffing

What is the total staff complement?

2

Give a breakdown of staff/functions/length of service?

2 staff members from August 2011

Do any receive special perks or incentives?

No

Are they on contract?

Letters of appointment

Do any have management potential?

They run the store at the moment

How involved is the Owner in running the business?

Maybe an hour a day

5. Premises

When does the current lease end?

July 2012

Is there an option of renewal & what period?

Annual lease renewable

What is the annual escalation %?

10%

What are the trading hours?

Monday to Friday 7-7 Saturday 8-2

What is the square meters of the business?

Approximately 40 square metres

Is a copy of the lease available?

Yes will be made available

Do you require a licence?

No

What lease deposit and/or other surety is required?

One month deposit and one month rent in advance

6. Assets

Is a full asset list on file?

Being Prepared

Are any items not included in the sale?

No

What is their overall condition?

Excellent

Do any require repairing?

No normal maintenance but all equipment was new in Aug 2011

How have they been valued ?

Establishment cost in Aug 2011

Which assets are on lease/HP and with whom?

None

What are their settlement amounts?

Fully paid

Are they presently insured?

Yes

7. S.W.O.T. Analysis

Strengths?

Well known brand with good passing trade

Weaknesses?

No hands on management

Opportunities?

This is a brand new store with excellent opportunities to grow

Threats?

None Known

8. Reason For Sale

What is the reason for the sale?

The one partner is getting married and going to live in the UK, her brother the other partner does not want to carry on, on his own

9. Conclusion

Why is this a good business?

This can be a very good business with more focused management, low rental and good products should ensure the growing success of the business There may be a re-franchise fee payable to the franchisor, however the seller does not think it will be charged as it is a new store, but it is subject to confirmation Profits are averaging over R16 000pm but the shop only opened in August 2011

What is the price plus stock and the net profit?

Priced at R420 000 plus stock of R5000