Franchised Cleaning Business in Sandton For Sale

Business description

History Background
Fully describe the business's activities? This is a franchise cleaning business and operates in the Sandton area. It supplies a range of services from domestic carpet cleaning to contract cleaning of carpets, kitchen deep cleaning and hygiene services
How long has the business been established? For over 10 years
How long has the owner had the business? Since May 2008
Present Market
How does the business operate on a daily basis? Clients call into the office for carpet cleaning, and to request quotes for commercial cleaning
How are the clients attracted to the business? Word of mouth and advertising
What Advertising/Marketing is carried out? Advertising is carried out with the yellow pages, pamphlets and the website
Does the business have any contract work? Yes contracts at present of about R41 000 per month
What competition exists? Prestige, Supercare and Steiner
What are the seasonal trends? Summer months are busier by about R30 000 per month
Financial
Is the business VAT Registered? Yes, business is vat registered
What VAT documentation is on file.? All returns from May 2008 available from the seller
Are there up-to-date Management Accounts available? Yes, up to date management accounts are available
What Balance Sheet and Income Statements are available? These are available
What percentage of of the business is cash/credit? Contracts are 30 day terms the balance are on COD basis
What is the age analyse of the debtors book? 30 Days for contract clients
How could the profitability of the business be improved? By securing more contracts and growing the hygiene services as well as offering dry carpet cleaning
Is Seller finance available and for what amount? No seller finance is available
Staffing
What is the total staff complement? 15 Staff
Are they on contract? Only contract cleaners are on contract for the duration of the contract
Do any have management potential? Yes 2 staff are capable of running the business
How involved is the Owner in running the business? Not at all at the moment as she has moved to Cape Town, but previously was involved fully
Premises
When does the current lease end? The business is and can be run from home
Assets
Is a full asset list on file? Full asset list on file
Are any items not included in the sale? No items will be excluded
What is their overall condition? Good working order
Do any require repairing? None of the assets require repairing
How have they been valued. ? Owner valued the assets
Which assets are on lease/HP and with whom? None of the assets are on lease / HP
Are they presently insured? Yes, assets are insured
S.W.O.T. Analysis
Strengths? Has a good customer base of contracts, strong franchisor support and training, the business has loyal hardworking staff
Weaknesses? No empowerment partner at present, ideal for a BEE buyer
Opportunities? There is plenty of scope to grow the business with medical accounts and tenders, together with 2010 related contracts
Threats? Economy and increasing labour costs
Reason For Sale
What is the reason for the sale? Owners have relocated to Cape Town
Conclusion
Why is this a good business? Already has a good client base which to build the business on
What is the price plus stock and the net profit? The business is selling R375 000 with a net profit of averaging R15 600 per month. In addition a re-franchise fee is payable to the franchisor for training etc, the amount of which has to be confirmed, but is probably R25 000

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R155,000 (included in the asking price)