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MANDATE REPORT
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1. History Background
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Fully describe the business's activities
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This franchised health and wellness franchise with an established client base is ready for a new owner. The clinic caters for clients that want to lose weight, be healthier and improve their lifestyle. They sell weight loss programs and products.
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How long has the business been established?
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13 Years
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How long has the owner had the business?
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4 Years.
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2. Present Market
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How does the business operate on a daily basis
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Owner runs it. Clients make appointments for individual consultation to help them with weight loss and wellness. Programs are drawn up & programs are sold to them to help them
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How are the clients attracted to the business
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Word of mouth and branded advertising through Franchisor.
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What Advertising/Marketing is carried out
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SMS Messages, eMail marketing, local ad magazines.
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Does the business have any contract work
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N/A
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What competition exists
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Normal for this market.
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What are the seasonal trends
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Slower during winter and December.
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3. Financial
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Is the business VAT Registered
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No
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What VAT documentation is on file?
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N / A
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Are there up to date management accounts?
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3 Years 2011 - 2012 not up to date. With bookkeepers
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What audited financials are available, income statement and or balance sheets?
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With bookkeeper.
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What percentage of the business is cash/credit?
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Cash and Debit Order
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What is the age analysis of the debtor’s book?
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N / A
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How could the profitability of the business be improved?
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More sales and staff adjustment to lower overheads..
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Is Seller finance available and for what amount?
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No
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4. Staffing
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What is the total staff complement?
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1 X Lady assistant.
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Staff Breakdown and length of service
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1 year, she helps with female clients.
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Do any receive special perks, bonuses or incentives?
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No
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Are they on contract?
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No
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Do any have management potential?
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Possibly
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How involved is the Owner in running the business
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100%
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5. Premises
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When does the current lease end?
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Month to month
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Is there an option of renewal & what period
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Yes
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What is the annual escalation %?
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7%
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What are the trading hours?
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08:00-17:00
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What is the square meterage of the business?
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80 sqm
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Is a copy of the lease available?
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Yes
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Do you require a licence?
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No
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6. Assets
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Is a full asset list on file?
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Yes, with owner
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Are any items not included in the sale?
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No
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What is their overall condition?
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Good
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Do any require repairing?
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No
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How have they been valued?
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Fair Value
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Which assets are on lease/HP and with whom?
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Ozone machine
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What are their settlement amounts?
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R17,500
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Will Seller settle or Buyer to take over?
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To be negotiated with seller
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Are copies of agreements available?
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Yes
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Are they presently insured?
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Yes
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![]() ![]() ![]() 7. S.W.O.T. Analysis
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Strengths
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This is a popular, well known brand with good client base. It is a recurring type of business with a strong Franchise backing and support.
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Weaknesses
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Cant always do your own thing as you have to conform to Franchise regulations.
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Opportunities
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The "Beauty" side of the business can be expanded. There is still plenty growth potential in the market
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Threats
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Nothing out of the ordinary
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8. Reason For Sale
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What is the reason for the sale?
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Owner wants to move on with other business interest
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9. Conclusion
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Why is this a good business to buy?
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This is an excellent business for someone interested in the health and beauty side of life. Here is a National Franchised operation with a good name, good branding, solid systems in place and a great opportunity
Price is R 330,000.00 which includes stock worth R 25,000. Franchise joining fee of R 47,000 excl VAT is not included and must be provided for by the buyer. This fee is for product and business training
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