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Annual turnover

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  • Mandate: 32916
  • Added: 27 Feb 2020
  • AFS
  • 2600

Milky Lane Franchise

Gauteng, Johannesburg
2600
Mandate 32916
Added 27 Feb 2020
R 1,100,000* ZAR
Stock: R 35,000
Assets: R 750,000
R 40,839 ZAR
Frank Schrempel
(PRINCIPAL)
Aldes Orion
Gauteng, Pretoria East
Gauteng, Pretoria East
Summary

Well established franchise in large mall for sale. manager run with trained staff.

Milky Lane Franchise
SELLING PRICE AFS
R 1,100,000* ZAR
Stock: R35,000
Assets: R750,000
R 40,839 ZAR
Summary

Well established franchise in large mall for sale. manager run with trained staff.

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Fully describe the business's activities?
Very well established Milky lane. Operational for many years, recently relocated in food court of large regional mall. Enjoys both covered and indoor seating. Large food courts draws clients. Operates 7 days per week. brand speaks for itself. Please note the figures are based on RECAST financials with a reduced Rental on a three year lease.

How long has the business been established?
20 Years at the current location

How long has the owner had the business?
For the last 11 years

How does the business operate on a daily basis?
Business is currently manager run and the current cost will be lower if the owner runs the business themselves. Opens at 10 during the week and 9 on weekends. Clients are typically drawn from the mall.

How are the clients attracted to the business?
No marketing is done so word of mouth and the location in the mall

What Advertising/Marketing is carried out?
None other than head office

What competition exists?
There are no real direct competitors although some other brands offer some of the same products not all, the only other sole ice cream offering is “Pauls Home Made Ice Cream” but they offer only hard ice cream and target a higher LSM compared to Milkylane. The brand only sells soft-serve ice cream.

What are the seasonal trends?
Hotter climate brings with it better revenues, school holidays and public holidays also represent higher turnovers

How did the Covid-19 pandemic impact the business turnover / daily operations?
Business is currently not trading due to Covid-19 regulations

Is the business VAT Registered?
yes

Are there up-to-date Management Accounts available?
Yes, these are recast management accounts with a reduced rental on a three-year lease Detailed Recast management figures with monthly breakdowns are available to qualifying prospective buyers

How could the profitability of the business be improved?
Salaries can be optimised with the removal of management More marketing required

What is the total staff complement?
1 manager, 6 staff

How involved is the Owner in running the business?
Not involved daily.

When does the current lease end?
Currently on a new 5 year lease from Dec 2019 at a reduced rate of R560m² HOWEVER the sellers are in negotiation with the landlord for a new 3 year lease at R350m², the recast numbers for the business are also based on a Rental of R350m²

Is there an option of renewal & what period?
Yes

What is the annual escalation %?
8%

What are the trading hours?
Mon-Thurs 10-9 Fri- Sun 9-10. Sunday hours could be reduced.

What is the square meters of the business?
Inside 96m² Outside 25m²

What lease deposit and/or other surety is required?
Subject to landlord

What are the main assets of the business?
Operational assets, tables chairs, kitchen equipment

What is their overall condition?
Very good, business re-vamped with relocation to current site in 2016

Do any require repairing?
No, face-lift revamp of around R70k possibly needed in 2021

Strengths?
Well know brand, product offering, no competition, trained staff, have value price point, products attractive to wide LSM

Weaknesses?
Owners not involved

Opportunities?
Cake sales, marketing to many schools in the area New NIce Cream sticks campaign that the brand that put a huge effort into, its a whole ecosystem of delivering an innovative product to wider areas of the market, prospectus available

Threats?
None

What is the reason for the sale?
Sellers have corporate jobs

Why is this a good business?
Well established, unique, trained staff , great location

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FRANCHISE DETAILS

Aldes Orion

2 members
7 active mandates
Gauteng , Pretoria East
108 Lynburn Rd, Lynnwood Manor
Pretoria East
0081

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