Franchise Fish Restaurant For Sale

Business description

History Background
Fully describe the business's activities? Family dining experience at a top branded seafood franchise in the country.
How long has the business been established? Business has been established for 2 years and 6 months
How long has the owner had the business? Owner established the business 2 years and 6 months ago with the establishment of the centre
What steps are in place to solve "load shedding" problems? Currently a generator is in place that runs all computers, lights and a fryer. The rest of the kitchen equipment is run off gas
Present Market
How does the business operate on a daily basis? The business is manager run with two managers in place, however this business needs to be owner run but the owner has too many other commitments
How are the clients attracted to the business? The centre location is prime and with good anchor tenants like Pick and Pay, Woolies and Virgin Actice make this a main attraction.
What Advertising/Marketing is carried out? National television ads, promotions like Greek nights and specials, SMS campaign that has a database of ove 5000 clients and general word of mouth
Does the business have any contract work? No contract work exists
What competition exists? The closest Seafood franchise in this area is +- 15 km away.
What are the seasonal trends? Busy time tends to be during the summer months
Financial
Is the business VAT Registered? Yes, business is vat registered
What VAT documentation is on file.? Up to date financials are available
Are there up-to-date Management Accounts available? Yes, up to date management accounts are available
What Balance Sheet and Income Statements are available? Up to date
What percentage of of the business is cash/credit? 60 % Credit cards and 40 % Cash
How could the profitability of the business be improved? For the owner to be more hands on in the business activities
Is Seller finance available and for what amount? Yes will consider
Staffing
What is the total staff complement? 2 Managers, 12 waitors and 12 kitchen staff
Give a breakdown of staff/functions/length of service? 80% of the current staff has been with the business from establishment
Do any receive special perks or incentives? 3 % commision on all sales and tips
Are they on contract? Staff all have contracts in place
Do any have management potential? Yes, management is in place
How involved is the Owner in running the business? 10% hands on
Premises
When does the current lease end? Lease ends in 2 years 6 months
Is there an option of renewal & what period? Yes a further 5 years
What is the annual escalation %? 9 - 10%
What are the trading hours? Mon to Sun 10:30 am to 10 pm
What is the square meterage of the business? Pending
Is a copy of the lease available? Yes, copy of the lease is available
Do you require a licence? Liquor licence
Assets
Is a full asset list on file? Yes, asset list is available
Are any items not included in the sale? No items will be excluded from the sale
What is their overall condition? Assets are in excellent condition
Do any require repairing? None, just to be maintained from time to time
How have they been valued. ? Accountant
Which assets are on lease/HP and with whom? Yes only the signage is on lease
What are their settlement amounts? Pending
Will Seller settle or Buyer to take over? The buyer would be required to take over the lease
Are copies of agreements available? Yes, copies are available
Are they presently insured? Assets are insured
S.W.O.T. Analysis
Strengths? Leading brand in the seafood dining experience, with over 120 oulets countrywide makes this a well marketed business that needs no introduction
Weaknesses? Needs to be hands on
Opportunities? Hand on operation can make this business run at full potential
Threats? No direct threats
Reason For Sale
What is the reason for the sale? The owner is from Canada and wants to relocating back to his family that is already there
Conclusion
Why is this a good business? Well supported franchise with strong franchisor backing, well branded in the market place with a reputation of high standards and quality.
What is the price plus stock and the net profit? R 2 860 000 inclusive of stock, average Net R95 000 per month

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R1,600,000 (included in the asking price)

Inventory / Stock value:

R60,000 (included in the asking price)