DVD Store In Fourways For Sale

Business description

This is a franchise operation situated in the far North of Joburg in a strip shopping centre with a floor space of 100 square meters. The shop was started by the owner and has been established for 13 years. Exremely well laid out with the presentation well lit making it easy for customers to make their choices. Well managed with 2 permanent staff, 3 part time as well as the owner who spends roughly 50 percent of the working day in the store. The trading hours are 10:00 to 20:00 Monday to Sunday. An invertor is in place to counteract power shortages. Winter and holiday times are the best trading months.30 percent of the sales are cash and the balance is on credit cards. The advance contract payments will be refunded to the buyer on the effective date of the sale. The present owner wants to sell as he intends to relocate. Management acconts covering the 12 months to December 2011 are available and there are supporting documents to verify these accounts during the due diligence process. All round this is a superior opportunity to get intothe DVD rental business.

Property information

Real Estate:

Lease

Lease terms:

To April 2013 with a renewal period .The escalation rate is 10 percent. The new owner will need to enter into a new lease with the lessor on terms and conditions similar to those on the current lease.

Leasehold rent:

R29,000 per annum

Location:

North of Joburg

Premises details:

In a strip shopping centre

Size in square feet:

100 squere meters

Business Operation

Expansion potential:

This is a growing market and there is plenty room for expansion.

Competition / Market:

In the surrounding areas but this one is particularly well situated

Reasons for selling:

Owner is relocating.

Trading hours:

10:00 to20:00 seven days a week

Employees:

Six - including the owner

Years established:

Thirteen

Franchise terms

Franchise opportunity:

Yes

The new owner will need to agree to the terms of a new franchise agreement.

Other information

Support & training:

The buyer will have the opportunity to learn about the business during the 20 day due diligence period and for 30 days after the effective date.

Furniture / Fixtures value:

R300,000 (included in the asking price)

Inventory / Stock value:

R700,000 (included in the asking price)