Franchised Supermarket With Bakery In Durban For Sale

Business description

A well established National Brand Franchised Supermarket, with in-house bakery and opportunity for a liqour store. Turnover of R1m.pm while netting over R120,000pm.

This is a Franchised Supermarket from a well known and successful group. It supplies the usual items found in a supermarket and has an in-house bakery. The store also earns extra income from an in-house DVD store as well as from a coffee machine, Lotto and Amusement Machines.

The business has been established and has operated from the same premises for twenty years, while the current owners have had the business for 11 years.

Balance sheet and Income Statements are available for the 2011 and 2010 Financial years.For the purposes of this report the Financial income statements for 2011 were used and averaged out per month. The Net Profits were calculated by adding back items such as Depreciation, Interest on Loans and personal Expenditure . Other items such as food and monthly groceries taken from the store by the owners are not added back and would increase the actual net profits even further.

Property information

Real Estate:

Lease

Lease terms:

The current lease has two years to run. There is an option to renew for a further 5 years @ 8% pa.

Leasehold rent:

R341,232 per annum

Location:

Durban Southern Suburb, KZN, SA

Premises details:

Average sized supermarket within a small strip shopping centre at an intersection.

Size in square feet:

386 sq. metres.

Planning consent:

Has a food and liquor licence

Business Operation

Expansion potential:

The shop itself could be expanded into neighbouring shops, or one could incorporate a Franchised bottle store on the premises which would greatly enhance turnover and profitability.

Competition / Market:

Minimal competition in the area. The closest is a garage nearby with it's food convenience store

Reasons for selling:

Emmigrating

Trading hours:

It is a busy supermarket and operates 7 days a week from 6am to 9pm.

Employees:

17 of the staff are casuals employed on a shift basis. There are 7 permanent staff members.3 operate as managers.

Years established:

20 years

Franchise terms

Franchise opportunity:

Yes

On application

Other information

Support & training:

Owner will train new owner and introduce to suppliers etc, while staff are fully trained.

Furniture / Fixtures value:

R2,580,000 (included in the asking price)

Inventory / Stock value:

R1,200,000 (included in the asking price)