How long has the business been established?
The Franchise started in 1999. This business opened in 2014.
Fully describe the business's activities?
Franchise Business Services and Communication Center. Offering one-stop business communications, this profitable business offers general secretarial services such as; printing, copying, design, internet, courier, laminating, binding, sales of office supplies and more, for corporate and private individuals. Fast growing and excellent growth potential!
How does the business operate on a daily basis?
Owner runs all aspects of the store together with the current employees. It enjoys support from regular customers like architects and businesses within the area, as well as walk in clients like students and the like. Each client's request is carried out in store, whether it be postage, copying, printing, artwork etc.
How are the clients attracted to the business?
The Franchise is well known and offers a wide range of administrative services which are in demand. Located in an upmarket shopping center, the store occupies a prime location in the main banking and business section of the center. The current owners strongly believe in word of mouth through customer service excellence.
What Advertising/Marketing is carried out?
The Franchisor handles the marketing and advertising by designing all artwork for specials and sending these to each franchisee for distribution. The current owner and landlord advertise on social media.
Does the business have any contract work?
There is no contract work, however, the business has a growing customer base of Architects, Restaurants and Attorneys that print with them exclusively. No contract work per se, but they are conveniently located in the shopping center and are the chosen supplier to other tenants and businesses in the surrounding area.
What competition exists?
Currently there is no competition in the mall.
What are the seasonal trends?
The business is consistent throughout the year. Courier services are particularly buoyant leading up to Christmas.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The pandemic had no impact on the business turnover or operations. Covid only affected the business during total lockdown, when the business had to close its doors.
Is the business VAT Registered?
Yes, this business is VAT registered.
What VAT documentation is on file?
All VAT documentation is available to buyers during the due diligence stage.
Are there up-to-date Management Accounts available?
Yes, there are up-to-date Management Accounts available.
What percentage of the business is cash/credit?
A maximum of 10% is on 30 day term for selected account holders. The remaining is cash based.
How could the profitability of the business be improved?
Introducing additional services to customers such as advanced graphic design, web design, business registrations and further marketing and advertising on social media.
What is the total staff complement?
The staff compliment of 4 can be reduced to 3.
Give a breakdown of staff/ functions/ length of service?
A full breakdown of staff, functions and service can be provided to Buyers during the due diligence stage.
Do any have management potential?
Yes, there is one staff member with management potential. This can be discussed with the Buyer during the due diligence stage.
How involved is the Owner in running the business?
The owners are fully involved in the business as they believe the more the owner is involved, the higher the success and the lower the losses and wastage.
Any special arrangements for the staff related to the Covid-19 pandemic?
Continuous awareness meetings with the staff on ways to stay safe and protect themselves.
When does the current lease end?
The current lease ends on 30 September 2023.
Is there an option of renewal & what period?
Yes, there is an option to renew for 3 years. This business's services are high on demand in the mall and the central management of the mall regard this business as an excellent tenant of whom they would not want to lose.
What is the annual escalation %?
There is an annual escalation of 7% .
What are the trading hours?
Monday to Friday - 09h00 to19h00 Saturday - 09h00 to 17h00 Sunday & Public Holidays - 09h00 to 15h00
What is the square meters of the business?
The total square meters of the business is 53.70.
Is a copy of the lease available?
Yes, a copy of the lease agreement is available to Buyers during the due diligence stage.
Do you require a licence?
An annual Fitness Certificate from the local municipality is required.
What are the main assets of the business?
A list of all the assets of the business are available to Buyers during the due diligence stage.
Are any items not included in the sale?
All assets on the asset register are included in the sale.
What is their overall condition?
All assets are in fairly good working order.
Do any require repairing?
Currently no repairing is required, maintenance is done where required.
How have they been valued ?
All assets are calculated at business value: between the replacement value and the new value, depending on the conditions and repairs required. Including fixtures, fittings, plant & machinery that are unencumbered. It also includes assets on lease or hire purchase that have a value greater than the outstanding debt.
Which assets are on lease/HP and with whom?
Copier is on a rental agreement with Minolta - commencement date 7 Feb 2020 for 3 years.
What are their settlement amounts?
The settlement amount on the rental agreement is available to Buyers during the due diligence stage. There is an option in the agreement to upgrade on the current machine.
Will Seller settle or Buyer to take over?
The Buyer is to take over the rental agreement.
Are they presently insured?
All assets are currently insured.
- Highly rated franchise with over 80 stores in Africa. - Franchise courier support. - Full support from Head Office for training and trouble shooting. - Location is busy and ideally situated. - Well trained and friendly staff. - Quality service - Running Concern with regular Customers. - Stable turnover. - One of the regular top 5 stores in 3 different categories,amongst 85 store in Africa. - Unique range of services and products on offer.
Current economic situation in Namibia.
- Improve on marketing and advertising strategies. - Introduce further services for Customers. - Selling of third party prepaid services such as electricity, cell phone airtime.
- Pandemic shutdowns. - Impact of future economy. - Price sensitivity of the Namibian Customer.
What is the reason for the sale?
The owner has health concerns and has a second business as well.
Why is this a good business?
Already established and growing business that now needs some further input from the Buyer to grow to the next phase. The Buyer would pay less than the establish costs. Good area. Well trained staff. Strong franchise which is growing. Established and has a regular client base. Services are high on demand, turnovers are consistent with a proven track record.
What is the price plus stock and the profit?
Selling price of N$ 2,200,000.00, including an average monthly stock holding of N$ 110,000.00. The annual net profit before tax is N$ 331,392.00, excluding a joining fee of 4,500$, at an exchange rate of 20 being N$ 90,000.00.
What is the Franchise joining Fee?
A joining fee of 4,500$, excluded in the selling price at an exchange rate of 20 being N$ 90,000.00.
What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
Monthly Royalty Fee is 3% of monthly net turnover. Advertising vetting fee is N$ 563.69 per month, increasing with 10% annually in November. E-Mail Admin fee is N$99.00 per month.
What extra marketing and advertising should a franchise budget for?
2% of turnover should be spent on marketing and promoting the store. When the Franchisor assists with the takeover they will ensure all platforms are set up to make sure the operator has the right audience reach.
What training is provided for new franchisees and staff members? Is there a cost associated with this?
The new franchisee should train for approximately one working week in Windhoek. Training is covered by the franchisor and a hand over with additional training is given by the current owner.
Does the franchise have to be owner operated?
Yes, the Franchisor requests that all franchises are owner operated.
What skills and background is the franchisor looking for in a prospective franchisee?
This should be a hard working extravert who has an eye for detail.
How many months working capital will the franchisee require?
If the business is running at a profit then working capital is not required. It is a running concern with a sufficient turnover covering the working capital.
How much unencumbered cash is needed from prospective franchisee?
At least 50% of the purchase price, excluding joining fees and landlords deposit.