"Selling your business is our business"
"Selling your business is our business"
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 acquired the business 4 years ago.
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.
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 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 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.
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 5 staff members.
Do any receive special perks or incentives?
All staff receive a basic salary 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 is up for renewal - Oct 2025.
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 09h00 to 18h00 - Monday to Friday
Saturdays and Sundays - 09h00 to 13h00
Is a copy of the lease available?
Yes, there is a copy of the lease agreement available to pre-approved buyers.
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 fair and reasonable replacement cost.
Are they presently insured?
All assets are presently insured and in good working order. No repairs or replacements required.
Strengths?
- Recession Proof
- Successful business model
- Trained staff in place
- Excellent location
- Support from Franchisor
- Reporting Systems and all things "admin" taken care off
Opportunities?
Increasing the Cash Advance book
What is the reason for the sale?
The current owner would like to decrease the workload with her pending retirement.
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$ 1 900 000 including an average stock holding of N$ 400 000
Cash Advance book at around N$ 180 000 to N$200 000.
The selling price excludes a joining fee payable directly to the franchisor.
