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Annual turnover

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  • Mandate: 34433
  • Added: 28 Jan 2021
  • AFS
  • 209

IDEALLY SITUATED, PROFITABLE RETAIL FRANCHISE SHOP SELLING SECOND HAND GOODS

Windhoek & Central, Khomas
209
Mandate 34433
Added 28 Jan 2021
N$ 2,805,000* NAD
Stock: N$ 1,400,000
Assets: N$ 1,500,000
N$ 84,125 NAD
Ursula Gollwitzer
Aldes Namibia
Windhoek, Kleine Kuppe
Windhoek, Kleine Kuppe
Summary

IDEALLY SITUATED, PROFITABLE RETAIL FRANCHISE SHOP SELLING SECOND HAND GOODS
SELLING PRICE AFS
N$ 2,805,000* NAD
Stock: N$1,400,000
Assets: N$1,500,000
N$ 84,125 NAD
Summary

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Fully describe the business's activities?
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 with loyal employees in place

How long has the owner had the business?
The owner started the business in 2010.

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.

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-diligence stage.

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

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

How does the business operate on a daily basis?
The clients are mostly walk-in clients and repeat customers. The store is currently owner operated, 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 is 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 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 14 staff .

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

Do any have management potential?
Yes, there are staff members with Management potential.

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 June 2026.

Is there an option of renewal & what period?
There is an option to renew for a period of 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?
An annual copyright music licence is required, 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. 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 business model - Trained staff in place - Excellent location

What is the reason for the sale?
The current owner would like to decrease his/her workload and retire within 5 years.

Why is this a good business?
An established and trusted business name 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 is N$ 2,805,000.00 including an average stock holding of N$ 700,000.00 in stock items, N$ 700,000.00 of cash advance loans with an annual profit before tax of N$ 866,700.00. The selling price excludes a joining fee of N$ 150,000.00.

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AGENCY DETAILS

Aldes Namibia

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

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