Fully describe the business's activities?
This is a well known franchise selling pizzas.
It is strongly advertised nationally by the franchisor.
This is a take away franchise
It is situated in a very good area with a lot of clients
How long has the business been established?
The business was established 6 years ago
How long has the owner had the business?
The owner had the business for 6 years
How does the business operate on a daily basis?
This is a take away franchise
It is situated in a very good area with a lot of clients
How are the clients attracted to the business?
Franchisor Marketing
Facebook and Social media
Word of mouth
Does the business have any contract work?
None
What competition exists?
No local competition
What are the seasonal trends?
Decembers tend to be the peak season
Is the business VAT Registered?
Yes, the business is registered for VAT
What VAT documentation is on file?
SARS document available on request.
Are there up-to-date Management Accounts available?
Yes, documents available on request
What Balance Sheet and Income Statements are available?
Yes, documents available on request
What percentage of the business is cash/credit?
+- 50% cash 50% card transactions
Is Seller finance available and for what amount?
No seller finance is available
What is the joining fee, % royalties, % marketing fee
Joining fee is +- R120 000
8% royalties of turnover
4% for marketing
What is the total staff complement?
A total of 14 staff members
Give a breakdown of staff/ functions/ length of service?
Personnel worked longer than 5 years:
2 managers
2 cashiers
4 kitchen members
Personnel worked less than 5 years:
6 personnel
Are they on contract?
Yes, contract is place for each staff member
Do any have management potential?
2 managers already appointed
How involved is the Owner in running the business?
The owner is 100% involved in the business
When does the current lease end?
4 years left on the lease agreement
The current lease 2023
Is there an option of renewal & what period?
5 years renewable
What is the annual escalation %?
The annual escalation is 6%
What are the trading hours?
Mondays - Thursdays: 09:30 - 20:30
Fridays - Saturdays: 09:15 - 20:45
Sundays: 10:00 - 20:00
What is the square meters of the business?
120 square meters
Who is the Owner/Landlord?
Spire Properties
Is a copy of the lease available?
Yes, document available on request
Do you require a licence?
No licence is required
What lease deposit and/or other surety is required?
R12 000.00 Deposit
What are the main assets of the business?
The appliances and IT appliances
Are any items not included in the sale?
The generator 50kva is not included in the sale
What is their overall condition?
Good
Do any require repairing?
No repairs needed
How have they been valued ?
Purchase price less depreciation
Are they presently insured?
Yes, Mutual & Federal
Strengths?
No competition at all in town
Very little seasonal trends
Personnel loyal and consistent
Weaknesses?
Owner/manager must stay hands-on
Opportunities?
New anchor tenant, Pick a Pay in centre
More social media marketing can be done
Threats?
No threats were identified
What is the reason for the sale?
The owner has many business interests
Focus elsewhere
What is the price plus stock and the profit?
Turnover: R500 000pm
(R50 000 including salary) For Owner
(R25 000 excluding salary)
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