Fully describe the business's activities?
This business is one of the best Franchisees for a well known Supplier. They operate in one of the Capes busiest malls. The owner has two staff members and is not involved in the opening and closing of the business. The Business operates as a kiosk in the mall and is situated close to the Food Court. They supply alternative ink and toner cartridges for home and office printers. They also sell OEM cartridges to customers who prefer these.
How long has the business been established?
The franchise outlet has been in operation since September 2016.
How long has the owner had the business?
Since the start
How does the business operate on a daily basis?
A sales assistant opens the kiosk in the mornings. They sell ink and toner cartridges over the counter of this mall kiosk, using a very user-friendly POS system.
How are the clients attracted to the business?
The mall has a very high footfall and the kiosk is in close proximity of the iStore, Incredible Connection and Computer Mania. The Franchisor is doing all the marketing and has an active website and a very good presence on Facebook.
What Advertising/Marketing is carried out?
The Franchisor does marketing mostly via the website and Facebook. The shop itself relies on passers by and word of mouth.
What competition exists?
No real competition in the three suburbs surrounding the shopping mall.
What are the seasonal trends?
Sales tend to be higher when the schools and universities are open. December is normally a relatively quiet month.
How did the Covid-19 pandemic impact the business turnover / daily operations?
Sales is dependent on the mall operating. Apart from when the Mall closed, the rest of Covid did not have a significant impact on the Business.
Is the business VAT Registered?
The business is VAT registered. All payments as per e-filing payments.
What Balance Sheet and Income Statements are available?
Income statements for the last three financial years and until June 2021. Balance sheet for Feb 2020. (An update may be available.)
What percentage of the business is cash/credit?
The business is 100% cash. Payments are made either in cash or per card via a speed point.
How could the profitability of the business be improved?
Negotiation is underway to reduce the monthly rental amount. The franchisor is working hard at reducing the cost of sales.
Give a breakdown of staff/ functions/ length of service?
Sales assistant / manager: 4,5 yearsâ service Sales assistant: 2,5 yearsâ service Duties: Counter sales; housekeeping; advise on specific stock that is required
Do any receive special perks or incentives?
The sales assistants receive a basic salary and commission on a sliding scale according to monthly turnover.
How involved is the Owner in running the business?
No presence in the kiosk at all. Does weekly orders and when required; checks day ends daily; issues stock take sheets weekly (very quick and easy) pays salaries, UIF and VAT; interfaces with franchisor
When does the current lease end?
The lease is currently on a month to month basis.
Is there an option of renewal & what period?
The new lease is currently been finalized for the next two years. It will be possible to renew the lease. Period to be negotiated. Normally for two years at a time.
What are the trading hours?
9h00 to 18h00 Monday to Saturday 9h00 to 17h00 on Sunday and public holidays
What is the square meters of the business?
The footprint is 8 square meters
Is a copy of the lease available?
What lease deposit and/or other surety is required?
Deposit / Bank guarantee of two monthsâ rental.
What are the main assets of the business?
As per Asset List
Cost effective, alternative printer consumables. No real competition. Well established and well known. Very good position.
Although sales decline during December there are no real weaknesses.
Increase of profitability by reducing cost of sales and rental amount. More marketing to the community, schools and businesses. More Facebook marketing. Monthly participation in Shopping Centre newsletter
Decline in printing of documents. This has however not happened since the so-called paperless era started. There seems to be a continued need for printing at home, at offices and at businesses.
What is the reason for the sale?
The Business has a good and stable income with virtually no involvement from the owner. The owner wants to relocate to a rural town and wants to purchase another small business.
Why is this a good business?
It has a good ROI. It requires minimal involvement from the owner. It is very easy to run. Stock is branded, packaged and supplied by the franchisor The business uses an online POS system, which is very user friendly. It is very easy and quick to order stock on a weekly basis and to process stock take. The system also offers an accounting module, with makes monthly accounting very easy.
What is the price plus stock and the profit?
The Seller is willing to put the stock on terms, to be repaid within 31 days of the take over date.
Annual Turnover Amount between R 500 thousand and R 6 million