Fully describe the business's activities?
Franchised Beauty Salon for sale in the East of Pretoria. Great location, well trained staff and manager run. The business has a good, loyal client base built up over the years.
How long has the business been established?
More than 10 years.
How long has the owner had the business?
The owner bought the business in 2016.
How does the business operate on a daily basis?
The owner is at the business on a daily basis and focuses on the general management of the business including marketing, ordering stock and attending to any payments. There are 4 permanent staff members handling all retail sales and attending to clients.
How are the clients attracted to the business?
The business is in a very good location with 2 anchor tenants attracting a lot of clients for the business. The business has been established for 13 years with a good strong client base.
What Advertising/Marketing is carried out?
The Franchise does a lot of marketing on a national basis and runs monthly specials and promotions throughout the group. The owner also uses their database to do SMS and email marketing to their clients. This can be utilised more efficiently.
What competition exists?
No direct competition in the centre. However, there are franchised salons in the shopping centres surrounding the shop.
What are the seasonal trends?
The industry norm shows that during winter sales and treatments tends to be a bit slower. However, sales usually picks up around Spring time.
Is the business VAT Registered?
What VAT documentation is on file?
All VAT documentation is available from the accountant.
Are there up-to-date Management Accounts available?
What Balance Sheet and Income Statements are available?
The owner provided us with Annual Financial Statements for 2017 & 2018.
What percentage of the business is cash/credit?
90% Card sales 10% Cash sales
How could the profitability of the business be improved?
A new owner can do more marketing utilizing the database. Also, the sales can be increased treatments such a microneedling and other popular treatments.
Is Seller finance available and for what amount?
What is the total staff complement?
4 permanent staff members, excluding the owner.
Give a breakdown of staff/ functions/ length of service?
1 x Nail Tech 2 x Therapists 1 x Manager (all rounder)
Do any receive special perks or incentives?
All staff receive a basic salary and commission (commission structure market related)
Are they on contract?
Yes, some staff members are still on probation.
Do any have management potential?
Yes, there is a manager in place and the owner is very happy with her performance
How involved is the Owner in running the business?
The owner is at the business on a daily basis but she is not a therapist.
When does the current lease end?
Current lease ends February 2019 and she has already started the renewal process.
Is there an option of renewal & what period?
There is an option to renew for another 3 years.
What are the trading hours?
Monday - Thursday 09:00 - 18:00 Friday - Saturday 08:00 - 17:00 Sundays Closed Public Holidays - 08:00 - 13:00
What is the square meters of the business?
Is a copy of the lease available?
Do you require a licence?
Franchise approval will be required.
What lease deposit and/or other surety is required?
1 month rental deposit.
What are the main assets of the business?
The owner provided us with a complete asset list for the business.
Are any items not included in the sale?
Everything will be included in the sale of the business.
What is their overall condition?
All assets are in a good and working condition and none need repairing.
How have they been valued ?
The owner provided us with a value.
Are they presently insured?
Yes, the business has comprehensive insurance.
- Good location; - Loyal, established client base - Good service and well trained staff - Manager in place
- High staff turnovers (Industry)
- Attending to local marketing - Introducing new treatments such a microneedling.
What is the reason for the sale?
The owner has received a new career opportunity in her line of work which she would like to persue.
Why is this a good business?
Established salon franchise with an established client base and good location. Manager run business, overheads low in relation to other business in the industry.
What is the price plus stock and the net profit?
R520 000 including stock and average net profit of R21 500 per month. Stock wpuld amount to approxamitely R30 000 Theres also a Franchise Joining fee of R75 000.
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