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  • Mandate: 34764
  • Added: 22 Jul 2021
  • AFS
  • 590

Quality Purified Water Distribution shop Franchise

Gauteng, Pretoria
Mandate 34764
Added 22 Jul 2021
R 1,430,000* ZAR
Stock: R 125,000
Assets: R 280,945
R 33,746 ZAR
Jannie van Vuuren
Aldes Focus
Gauteng, Pretoria East
Gauteng, Pretoria East

Selling and Distribution of bottled water and refilling of RO water Low Franchise fees. Northern suburbs of Pretoria

R 1,430,000* ZAR
Stock: R125,000
Assets: R280,945
R 33,746 ZAR

Selling and Distribution of bottled water and refilling of RO water Low Franchise fees. Northern suburbs of Pretoria

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Fully describe the business's activities?
The business sells and distribute bottled water, Refilling of RO water. Aiming to supply clean bacteria free drinking water to the community at an affordable price.

How long has the business been established?
6 years

How long has the owner had the business?
Since 2015

How does the business operate on a daily basis?
The responsible employee open and close the shop. We assist walk in customers with refilling and general sales. Bulk orders are made up for outside customers.

How are the clients attracted to the business?
The business is well positioned in a very busy life style shopping center. The Anchor tenants include Checkers, Clicks, Woolworths Food and many more.

What Advertising/Marketing is carried out?
Website, Facebook page and Local advertisement pamphlets are distributed

Does the business have any contract work?

What competition exists?
There are a few water shops in the area, but not any in the direct vicinity.

What are the seasonal trends?
During winter time it is normally quite, but more customers uses bottled water than tap water.

How did the Covid-19 pandemic impact the business turnover / daily operations?
Being seen as an essential service the business were allowed to remain open throughout the lockdown period. It did impact outside orders but the business still managed to stay financially sound with their regular walk in customers.

What steps / actions have been taken to combat the effect of Covid-19 pandemic?
The outside customers came back slowly as the schools, Bars and conference centers reopened.

Is the business VAT Registered?

What VAT documentation is on file?
All up to date VAT returns are on file.

Are there up-to-date Management Accounts available?
Yes up to date financials till 28 February 2021

What Balance Sheet and Income Statements are available?
All Financials are available since incorporation.

What percentage of the business is cash/credit?
95% cash business

What is the age analysis of the debtors book?

How could the profitability of the business be improved?
Marketing and signing and more outside contracts

Is Seller finance available and for what amount?

What is the total staff complement?
3 staff complements.

Give a breakdown of staff/ functions/ length of service?
1. Cleaner -5 years 2 Senior Shop assistant 3 years 3. Shop assistant -1 year

Do any receive special perks or incentives?

Are they on contract?

Do any have management potential?

How involved is the Owner in running the business?
The Owner is hands on with the stock control and financial control.

Any special arrangements for the staff related to the Covid-19 pandemic?
The staff are required to Wear PPE supplied and follow general protocols

When does the current lease end?
30 November 2021

Is there an option of renewal & what period?
Yes the Landlord is generally happy with a 3-5 years lease

What is the annual escalation %?
Approximately 7 % that can be negotiated

What are the trading hours?
Mon- Fri 08h00- 18h00 Sat 08h00- 16h00 Son 08h00- 14h00

What is the square meters of the business?
46 square meters

Is a copy of the lease available?

Do you require a licence?

What lease deposit and/or other surety is required?
3 months rent

What are the main assets of the business?
The main assets of the business are a Industrial RO 25 system ,a Pre and Post filtration system, Flash cooler carbonator unit and a emergency power Inverter. There are complete shop fitting done and Label templates for branding on the bottles.

Are any items not included in the sale?

What is their overall condition?

Do any require repairing?
No ,all in working order

How have they been valued ?
Original purchase price

Which assets are on lease/HP and with whom?
The Ice Machine is on lease with Afrivend ( R1725/ month)

What are their settlement amounts?

Will Seller settle or Buyer to take over?
The buyer can take over the lease if so wishes . The Lease runs from month to month.

Are copies of agreements available?

Are they presently insured?

The Business is well known in the surrounding area and have many long standing regular customers. With the freedom the Franchisor allows you , you can do business where ever you like and can get contract customers anywhere. The business is the only water shop in the area that makes their own sparkling water, this gives the business a larger product range and the business supply the other franchises in the group.

With the Owners work in another Province and working remotely they haven't been able to market the shop effectively. There is a lot of potential to be unlocked.

There are many businesses like schools, guest house conference centers, ect. that can be approached to expand the business

Other water shops opening in the direct area .However there are not many centers around.

What is the reason for the sale?
The Owner is immigrating.

Why is this a good business?
This business is extremely easy to run and and profitable with huge potential. The franchisor give the franchise a lot of freedom to expand in the market place ,with low monthly management fees,unlike other water businesses.

What is the price plus stock and the profit?
R1 430 000 selling price and a annual nett profit of R404 955

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