Fully describe the business's activities?
This is an award winning advertising based business that promotes the advertised material to a captive audience with the result that it is very easy to sell the advertising and many of the franchises sell out their quota of adverts within the first couple of months in the year. The issue then becomes oneof cashflow management and budgeting effectively for the remainder of the year. As there are 56 adverts per franchise, effectively you only need to sell 112 adverts per annum which works out at 9.34 adverts per month, or 0.4 of an advert per working day in a 5 day week.
Apart from selling the advertising space, the only other demand on the franchisee is to visit each site twice a month to check everything is fine and to load the latest adverts onto the system - there are a total of 7 sites. The clients may change their adverts once a month; the franchisor handles all the related artwork and the franchisee is the liaison person.
As can be seen, the advertisers get a great deal as their ad is shown across 7 sites by default or 14 or 21 if they elect to go on two or three franchises, this makes selling of the advertising very easy.
PLEASE NOTE â The financials figures presented are based on the owner doing all the work and is a forecast of the revenue with all ads sold. Apart from Franchisor royalty listed as expenses, we have budgeted R5,000 for fuel, telephone, Insurance, etc. per month.
How long has the business been established?
The business was established in 2011
How long has the owner had the business?
The current owner has had the business for just over a year