History and Overview Of The Business
|
| Fully describe the business's activities |
Well known franchise selling frozen yoghurt and coffee.
The seller has had this store manager run since December last year which has adversely affected the performance which is reflected in the figures. The manager has been let go and the owner is currently running the store themselves.
The seller is however leaving the food industry and have sold their other restaurants and only wish to sell this store still and are therefore prepared to offer this at the price stated for a speedy sale. |
| When was the business established? |
November 2013 |
| How long has the owner had the business? |
Owner started the business |
How Does The Business Operate
|
| How does the business operate on a daily basis |
Owner run |
| How are the clients attracted to the business? |
Passing trade, mall states 800,000 feet at 11% growth for the centre. |
| What Advertising/Marketing is carried out? |
Have done pamphlets and school drops. Head office as a truck that visits schools. |
| Does the business have any contract work? |
No |
| What competition exists? |
None in the centre |
| Seasonal Trends? |
Peak season is late September through mid February |
Financial Information
|
| Vat Registered? |
Yes |
| Vat Documentation on File? |
All on file with the seller. |
| Management Accounts? |
Yes, please note the figures are based on recast financials with the following adjustments
1. The managers salary of R5,000 has been removed from the expenses.
2. The royalties have been removed as the franchisor is not charging royalties any more but only a flat R4,000 monthly marketing fee.
3. Due to the simplicity of the bookkeeping this has been adjusted to R500 every second month. |
| Audited Financials? |
None |
| What as Cash/Credit Split? |
50/50 Cash and card |
| Debtors Book Age Analisys |
None |
| How can you improve the profitability? |
Additional services, marketing through the schools |
| Is Seller Finance available and if so what is it? |
No, cash sale |
Staffing Of the Business
|
| What is the total number of Staff? |
2 staff members. |
| Staff Breakdown |
2 x Back of house staff, mixing, cleaning machines and store |
| Staff Special Perks and Bonuses? |
No |
| Are the staff on Contract? |
No |
| Does any of the staff have management potential? |
No |
| How involved is the Owner in running the business? |
Since the manager has recently been let go the owner is spending 100% of the time at the business |
Premises Of the Business
|
| When Does the Current Lease ends? |
November 2018 |
| Is there an option to renew? |
Yes, 5 years |
| What is the annual escalation % |
8% |
| What are the Trading Hours? |
Mon-Fri & Sun 09:00 – 18:00
Sat 08:30 – 18:00
Public Holidays 09:00 – 15:00 |
| What is the square meters? |
65m² |
| Is a copy of the lease available? |
Yes |
| Do You require a license? |
No |
Assets Of The Business
|
| Full Asset List available? |
Yes, owner will provide |
| Anything not included in the sale? |
Yes the coffee machine |
| What is condition of the assets |
Very good |
| Any Assets on Lease/HP that Buyer needs to take over? |
Yes, however owner will settle all assets on lease |
| Are they insured at the moment? |
Yes |
SWOT Of The Business
|
| STRENGHTS |
Well know nice franchise brand
Best product in the market place
Scope to expand on the lines |
| WEAKNESSES |
Lack of owner involvement till very recently
Brand needs to be exposed more |
| OPPORTUNITIES |
Introduce cones, flapjacks and Belgium waffles |
| THREATS |
None identified |
Summary
|
| Why is this a good business |
Well established , well run, well located business |
| Why is the owner selling it? |
Seller is getting out of the food industry |