Fully describe the business's activities?
The business is a Take - Away Franchised Fish and Chip Store located opposite a Franchised Supermarket entrance in a Durban Shopping Centre. The Franchise was voted the number 1 take-away in the seafood category in the 2015 Sunday Times Top Brand Awards. A new Store costs R 699,000 to set up with a joining fee of R 140,000. The Franchisor is willing to waive the Joining Fee for a Buyer for this store. The Store is being offered at a discount price of R 550,000.
How long has the business been established?
The Franchise was established in 2012. This particular Store is brand new having only been trading for one month.
How long has the owner had the business?
The Franchisee has had the business one month and is wanting to sell as he has a new business opportunity in Johannesburg he wishes to take up.
How does the business operate on a daily basis?
Staff open the shop, prepare ingredients and operate with no input from the Owner. The business provides customers with combination dishes of Fish and Chips, Russian sausages and calamari. All franchisees are required to complete a five-day training program that covers day-to-day operations, staffing, stock control, marketing, and management skills. Franchisees are supported by an experienced team including a dedicated franchise manager who facilitates communication and operational requirements between the Franchisee and the Franchisor.
How are the clients attracted to the business?
The Store is strategically located outside a well known Franchise Supermarket and attracts walk by Customers. The Brand was voted the number 1 take-away in the seafood category in the 2015 Sunday Times Top Brand Awards.
What Advertising/Marketing is carried out?
The Franchisor advertises in various media. The Franchise is a growing brand with close to 200 stores in Southern Africa.
What competition exists?
There are other Food Stalls and Restaurants in the mall.
Is the business VAT Registered?
No. It is a new store and has only been operating one month.
What VAT documentation is on file?
Are there up-to-date Management Accounts available?
As the store has just opened and has no trading history, there are no Management Accounts. For the purposes of this report Projections from the Franchisor of what a similar size store could achieve in year one have been used.
What Balance Sheet and Income Statements are available?
There are no Financials .
What percentage of the business is cash/credit?
The business is strictly cash/Credit Card.
What is the age analysis of the debtors book?
There are no debtors.
How could the profitability of the business be improved?
The Store could provide a delivery service to nearby businesses.
Is Seller finance available and for what amount?
The Seller is negotiable .
What is the total staff complement?
There are 5 staff members.
Are they on contract?
Staff have letters of appointment
How involved is the Owner in running the business?
The Owner is based in JHB . where he operates another Franchise. His input is via remote control.
When does the current lease end?
30th. April 2023
Is there an option of renewal & what period?
There is a 5 year renewal option.
What is the annual escalation %?
What are the trading hours?
The Store operates Mon - Sun 8.30am - 6.30pm.
What is the square meters of the business?
58.75 sq. m.
Who is the Owner/Landlord?
Is a copy of the lease available?
A copy of the lease is on file.
What lease deposit and/or other surety is required?
The deposit for the current lease was R 53,400.
What are the main assets of the business?
The assets are the standard assets supplied by the Franchisor to operate the store. The Store was fully fitted out before trading began. A full asset list will be made available to qualified Buyers.
Are any items not included in the sale?
All items are included.
What is their overall condition?
All assets are Brand New.
How have they been valued ?
Assets are valued at cost.
Which assets are on lease/HP and with whom?
All assets are paid for.
Are they presently insured?
All assets are fully insured.
This is a well known Fish and Chip Brand that is part of a large Franchise Group.
No weaknesses are perceived.
A new Owner could advertise and offer a delivery service to surrounding businesses in the area.
Standard Economic Threats.
What is the reason for the sale?
The Owner runs another Store in JHB, and has been offered another business oportunity he would like to invest in.
Why is this a good business?
A brand new store of a well known Franchise strategically located outside of one of the anchor tenants of the Shopping Centre, a well known Supermarket Franchise. As such, the Store has a lot of walk by traffic.
What is the price plus stock and the net profit?
The Price is R 550,000 plus stock of approximately R 25,000. The store has only been trading for one month so there is no history. The Franchisor projects profits of up to R 30,000 p.m. by the end of the 1st. Year of Trading.
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