Fully describe the business's activities?
This franchise makes and sells pizza to the public .
How long has the business been established?
The business has been established in 2019. The business has been in operation for more than 20 years
How long has the owner had the business?
Give a breakdown between sit-down, takeaways and deliveries
Business only does takeaways and deliveries - no sit-down
How does the business operate on a daily basis?
The business operates daily 7days per week. Only closed on Christmas and New year
How are the clients attracted to the business?
Part of the franchise monthly fee includes advertising costs. Local adverts are also run
What Advertising/Marketing is carried out?
Local newspapers, add boards, flyers, and social media
What competition exists?
Competition does exist in the market namely Romans pizza, Debonairs, and other franchise, and non-franchise takeaways.
What are the seasonal trends?
Sales on average are the same each month
How did the Covid-19 pandemic impact the business turnover / daily operations?
The business was only impacted at the time of the lockdown.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
In-house specials are advertised to increase turnover.
Is the business VAT Registered?
Yes, the business in VAT registered
What VAT documentation is on file?
The owner can provide all the returns up to date
Are there up-to-date Management Accounts available?
Yes, there are up to date Management accounts
What Balance Sheet and Income Statements are available?
Financial Statements are available
What percentage of the business is cash/credit?
Approximately 20 % cash and 80 % EFT or cards
How could the profitability of the business be improved?
The current GP% is not correct, it should be in the region of 45 to 50 %
Is the numbers reflecting the Annual Financial Statements?
The numbers used are based on the financial statements but do not reflect the same. This is the opportunity that I call a " Restart" A well-established business with 19 years of solid turnover Adjustment 1 The Group Average Gross profit margin Range between 48% and 52%. I have adjusted this store's margin to 49%. The AFS gives a 36% gross profit margin Adjustment 2 Rent from Mar-21 to June -21 was R14 894 to R 6 563 the next door bottle stores rent was still included in this AFS ( same owner) Adjustment 3 Reduced wages with R 7 692 per month to bring to the industry norm.
What is the total staff complement?
There are 10 staff members
Give a breakdown of staff/ functions/ length of service?
3 Managers and 7 Kitchen staff
Do any receive special perks or incentives?
None at the moment
Are they on contract?
Employment contracts available
How involved is the Owner in running the business?
Currently, the owner is only overseeing the financials
Any special arrangements for the staff related to the Covid-19 pandemic?
None at the moment
When does the current lease end?
Is there an option of renewal & what period?
Yes, there is an option for renewal for another 5 years
What is the annual escalation %?
What are the trading hours?
The trading hours are from 9h00 to 21h00 every day. 7 Days per week
What is the square meters of the business?
90 square meters
Is a copy of the lease available?
Do you require a licence?
All license documents are up to date
What lease deposit and/or other surety is required?
The current deposit is R6323.06
What are the main assets of the business?
Kitchen and catering equipment
Are any items not included in the sale?
What is their overall condition?
Some equipment needs attention
Do any require repairing?
Yes, one pizza oven needs repairs but is still working
How have they been valued ?
No, they have not been valued
Which assets are on lease/HP and with whom?
Are they presently insured?
It is a good product and well established
The current management does not reach the GP targets
There are good profits to be made if GP targets are met
The financial hardship of residents can influence sales
What is the reason for the sale?
Owner lives in Louis Trichardt and wants to buy another business closer to him
Why is this a good business?
The business has been in the same area for over 20 years and is well established.
What is the price plus stock and the profit?
R 800 000 The current Gross profit is around R 106 000 per month and should be around R146 000 per month
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