East London Exceptional Business Opportunity Top Established Brand For Sale

Business description

An exciting opportunity exists to open your own branded, fully licensed operation in East London, of an existing, extremely well established and successful office furniture retailing business.

The parent company was established by the current owner in Port Elizabeth some 16 years ago, has an impeccable reputation, and has steadily grown into a large, successful and very well known business that is second in size only to a national listed competitor.

It currently operates from 3 separate premises in Port Elizabeth - a retail showroom of over 1600 sq.metres, a stock warehouse of over 1000 sq.metres and a factory of over 1000 sq.metres.

In addition there is an existing retail branch operation of about 400 sq.metres upon which the East London operation will be modelled.

Staff compliment is more than 50, and combined annual sales are in excess of R20 million.

The owner is now looking to strategically expand his operation into other areas, and has decided on East London as a logical starting point.

After much thought it was decided to opt for a business model that operates on an independant "license" basis, rather than as a franchise.

The seller is now looking for a dynamic self starter with sufficient cash to fund the establishment of the East London operation, and to partner him in expanding his exceptional brand into this area.

The East London operation can be set up for around R700,000, of which R300,000 is stock, and a further R130,000 is other assets.

Potential returns in the short term are very good, with exceptional medium to longer term prospects.

Make contact now to receive a detailed prospectus and 2 year income statement and cash flow projections.

With a long list of tangible benefits and exceptional start-up and ongoing support, this opportunity must NOT be missed!

Property information

Real Estate:

Lease

Lease terms:

Will need to be negotiated.

Location:

The operation will need to be well located, and the licensor will be directly involved with site selection.

Premises details:

Require approximately 400 sq.metres of retail space as well as an additional 200 sq.metres of cheaper storage space.

Business Operation

Expansion potential:

Very real opportunity - will become apparent upon closer investigation.

Reasons for selling:

Expansion opportunity,

Trading hours:

Normal office hours, Mondays to Fridays.

Employees:

Parent company 55 staff, new operation will have 4 staff

Years established:

Parent company est 16 years

Franchise terms

This is not a franchise. The new entity will be a stand alone, independantly owned operation, licensed by the parent company to use the trading names, branding and literature. For this a nominal flat monthly license fee will be charged.

Other information

Support & training:

The founder and current owner of the parent company will personally be involved with site selection, training and ongoing support to the licensee. One huge advantage is that there is an existing branch operation in PE that operates on exactly the same business model as the new operation will. This business can be used for training and benchmarking.

Furniture / Fixtures value:

R130,000 (included in the asking price)

Inventory / Stock value:

R300,000 (included in the asking price)

Relocatable:

This business can be relocated.