Fully describe the business's activities?
This is a franchised fish and chips take away, perfectly located in a busy centre.
How long has the business been established?
The franchise group was established more than 10 years ago and this particular store has been operating since November 2019.
How long has the owner had the business?
The owner started this store in November 2019.
Give a breakdown between sit-down, takeaways and deliveries
While there is some seating, this business caters mainly for take-away patrons. They currently do not offer deliveries.
How does the business operate on a daily basis?
As the owner lives in another town, the business is run entirely by staff who open and close the shop as well as manage the daily operations.
How are the clients attracted to the business?
The store is strategically located in a busy shopping centre, with lots of passing trade. This is a well known, popular brand famous for its generous portions at affordable prices.
What Advertising/Marketing is carried out?
At this stage the owner does not carry out any additional marketing, however, the franchisor advertises nationally via their website and various social media platforms.
What competition exists?
There are several take away outlets in the centre.
What are the seasonal trends?
None could be identified as the business has only recently opened.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was closed during the months of April and May. Normal operations resumed in June, generating consistent turnovers.
Is the business VAT Registered?
Yes the business is a VAT vendor.
What VAT documentation is on file?
Applicable documentation is on file.
Are there up-to-date Management Accounts available?
Management accounts are available for perusal by serious buyers.
What Balance Sheet and Income Statements are available?
As this business has been operating for less than a year, no financial statements are available at this stage.
What percentage of the business is cash/credit?
The business does not provide credit at all.
How could the profitability of the business be improved?
The profitability of this business would improve significantly with more owner involvement as well as increased local marketing.
Is Seller finance available and for what amount?
The seller will only consider an outright sale.
What is the total staff complement?
The business employs five staff members operating on a shift basis.
Are they on contract?
Yes, there are valid contracts in place for all staff members.
Do any have management potential?
There are two staff members who have management potential and this will be discussed with possible buyers.
How involved is the Owner in running the business?
The owner resides in another town, and spends very little time at the business.
When does the current lease end?
The current lease expires in 2024.
What are the trading hours?
The business operates in accordance with the centre hours. They open at 10am and close at 6pm during the week. On Fridays they close at 7pm, Saturdays at 5pm and Sundays at 3pm
Do you require a licence?
No licenses are required, however, a new owner will need to be approved by the franchisor.
What lease deposit and/or other surety is required?
A rental deposit will be required and will be determined at a later stage.
What are the main assets of the business?
Shop fittings, furniture, computer and kitchen equipment. A full list of the assets is available.
What is their overall condition?
All the assets are new and are in excellent condition.
How have they been valued ?
The value of the assets has been provided at cost.
Which assets are on lease/HP and with whom?
None, all the assets are financially unencumbered.
Are they presently insured?
Yes, the business and its assets are comprehensively insured.
Well established, popular brand. The store is strategically located in a busy centre with lots of passing trade. Simple, manageable menu at very affordable prices.
Very little owner involvement.
Increased local advertising and marketing will improve turnovers and the introduction of a delivery service could also contribute significantly to the bottom line.
General economic threats.
What is the reason for the sale?
The owner resides in another town and has other business interests. She is unable to provide the franchise with the attention it deserves.
What is the price plus stock and the profit?
The asking price is R370 000 plus stock estimated at around R20 000. In addition, the buyer will also need to cover franchise joining fees of R86 000 including VAT. The business has been generating an average net profit of about R 20 000 per month.
Annual Turnover Amount between R 500 thousand and R 6 million