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  • Mandate: 34433
  • Added: 28 Jan 2021
  • AFS
  • 275

FRANCHISED RETAIL SHOP SELLING SECOND HAND GOODS

Windhoek & Central, Khomas
275
Mandate 34433
Added 28 Jan 2021
N$ 2,750,000* NAD
Stock: N$ 1,600,000
Assets: N$ 1,500,000
N$ 72,225 NAD
Ursula Gollwitzer
Aldes Namibia
Windhoek, Kleine Kuppe
Windhoek, Kleine Kuppe
Summary

Well known franchised pawn shop.

FRANCHISED RETAIL SHOP SELLING SECOND HAND GOODS
SELLING PRICE AFS
N$ 2,750,000* NAD
Stock: N$1,600,000
Assets: N$1,500,000
N$ 72,225 NAD
Summary

Well known franchised pawn shop.

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How long has the business been established?
This is a well known franchised retail shop that sells new and second hand goods. They also give secured money lending against goods. This franchise has stood the test of time and can also be categorized as a "recession-proof" business. This business has a good cash flow, is ideally located and has loyal employees in place.

How long has the owner had the business?
The owner bought the franchise is 2010.

How long has the Franchise group been establised for?
This franchise group has shown consistent and steady growth over its 25-year history in Southern Africa and over 30 years globally.

What is the success of the current franchisees?
Most of the franchisees have been with the group for years; in fact, the first franchisee has recently signed his third 10-year term with the group. The aim for all franchisees is to create real value every day, with immense personal and financial rewards – to enable profit with purpose.

How does the business operate on a daily basis?
The clients are mostly walk-in clients and repeat customers. The Franchisor requires an owner operated store, however there are managers in place.

How are the clients attracted to the business?
This group is a household name with a good reputation that keeps customers returning. The shop front and layout of this retail franchise are attractive to retail shoppers.

What Advertising/Marketing is carried out?
The Franchisor carries out the marketing and advertising on a national basis and every franchisee contributes a % of turnover towards the group costs.

What are the seasonal trends?
November and December tend to be the busiest time, however the income stream is very stable and therefore known as a "recession proof" business.

Is the business VAT Registered?
Yes, this business is VAT registered.

What VAT documentation is on file?
All VAT documentation is available to pre-approved buyers.

Are there up-to-date Management Accounts available?
Yes, there are up to date management accounts available to pre-approved buyers.

What is the total staff complement?
There are a total of 8 staff .

Do any receive special perks or incentives?
All staff receive a basic and sales staff receive commissions on sales targets.

How involved is the Owner in running the business?
The owner is involved daily.

When does the current lease end?
The current lease ends in May 2021.

Is there an option of renewal & what period?
There is an option to renew for a period of 3 to 5 years.

What are the trading hours?
Trading hours are 08h30 to 17h30, Monday to Saturday.

Is a copy of the lease available?
Yes, there is a copy of the lease agreement available to pre-approved buyers.

Do you require a licence?
The buyer must be approved by the Franchisor. An annual copyright music licence, together with a municipal trading licence is required.

What are the main assets of the business?
The main assets of the business is the Furniture & Fittings and one vehicle, however a full asset register will be provided to approved buyers during the due diligence stage.

How have they been valued ?
The assets have been valued at Business value, between the replacement value and the new value.

Are they presently insured?
All assets are presently insured and in good working order.

Strengths?
- Recession Proof - Successful Franchise model - Trained staff in place - Excellent location

Weaknesses?
The owner must be involved in all aspects of the business.

What is the reason for the sale?
The current owner would like to decrease his/her workload.

Why is this a good business?
An established and trusted brand with an excellent footprint in the market. The business has a consistent flow of income with well trained staff and systems in place.

What is the price plus stock and the profit?
The selling price including an average stock holding of N$ 1,600,000.00 is N$ 2,750,000.00 and annual profit before tax is N$ 866,700.00. The joining fee is an additional N$ 150,000.00 over and above the asking price.

What is the Franchise joining Fee?
The franchise joining fee is N$ 150,000.00 excluded in the sale price.

What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
The monthly royalty, management and marketing fees are available to pre-approved buyers during the due-dilligence stage.

What skills and background is the franchisor looking for in a prospective franchisee?
For prospective franchisees to qualify, half of the total purchase amount is required upfront, in cash, while the balance can be financed through your institution of choice. The franchise team will assist with the compilation of your business plan. The franchisor does not want investors to manage from a distance, but to be hands-on owner-operators who are aligned with their values, professionalism, passion, respect, integrity, and collaboration.

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FRANCHISE DETAILS

Aldes Namibia

4 members
28 active mandates
Windhoek , Kleine Kuppe
4th Floor 1@Steps C/O Grove and Chasie street , Kleine Kuppe , Windhoek

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