Franchised Vehicle Fitment Centre In Johannesburg For Sale

Business description

Summary
Popular franchise, located on busy main road just outside Johannesburg. Seller has recently purchased business, however wife diagnosed with illness and can not continue with ownership. Bring your passion for the industry and grow this opportunity due to prime location.

1. History Background
Fully describe the business's activities?
Vehicle fitment centre assisting with tyres, mags, wheel alignment, balancing, towbar, shocks, brakes and lower suspensions

How long has the business been established?
5 years ago

How long has the owner had the business?
Since June 2011

What steps are in place to solve 'load shedding' problems?
None

2. Present Market
How does the business operate on a daily basis?
Franchised fitment centre with good brand name. Located on busy main road for convenience

How are the clients attracted to the business?
Location is key and competitive pricing

What Advertising/Marketing is carried out?
Head office marketing in TV, Radio and Newspaper. The Seller distributes flyers and advertises in local newspaper

Does the business have any contract work?
The business has major 4 companies, no signed contract, but service agreemement

What competition exists?
No other major competitive close to store, closest competition +- 8 kms away

What are the seasonal trends?
The store experiences busier periods during school holidays and holiday season

3. Financial
Is the business VAT Registered?
Yes

What VAT documentation is on file?
Yes, for approved buyers during due diligence

Are there up-to-date Management Accounts available?
June to August 2011 management accounts from accountant

What Balance Sheet and Income Statements are available?
Not available, however turnover figures can be requested from head office

What percentage of the business is cash/credit?
Only 4 accounts, majority of business is cash / card

What is the age analysis of the debtors book?
Maximum 30 days

How could the profitability of the business be improved?
The Seller recently took over the business. Wife has serious illness and unable to spend the time needed in business. The new owner must be hands on and agressively market the surrounding areas such as a major university and many large corporates in the area. This will bolster turnover and improve bottom line.

Is Seller finance available and for what amount?
NO

4. Staffing
What is the total staff complement?
Currently 7 staff and the owner

Do any receive special perks or incentives?
No

Are they on contract?
Yes

Do any have management potential?
None currently, as Seller has recently taken over business

How involved is the Owner in running the business?
Hands on involvment

5. Premises
When does the current lease end?
+- 3 years remaining

Is there an option of renewal & what period?
3 years

What is the annual escalation %?
8%

What are the trading hours?
Monday to Friday 8 am to 5 pm, Saturday 8am to 1pm

What is the square meterage of the business?
+- 600sq

Is a copy of the lease available?
Yes, for approved buyers during due diligence

Do you require a licence?
No

What lease deposit and/or other surety is required?
2 months deposit

6. Assets
Is a full asset list on file?
Yes, for approved buyers during due diligence

Are any items not included in the sale?
No

What is their overall condition?
All in good condition. Store is currently going through upgrades with painting and tiling being done

Do any require repairing?
No

How have they been valued. ?
Equipment supplier valuation

Which assets are on lease/HP and with whom?
No

Are copies of agreements available?
Yes, for approved buyers during due diligence

7. S.W.O.T. Analysis
Strengths?
Franchised, well known brand. Located on busy main road with no other competition close by. Visibility good from main road, with exit through side adjoining road.

Weaknesses?
The Seller has recently purchased the business. Only limited management accounts available from accountant. However, can request proof of turnover from Head Office to establish past performance. Pricing is high, but Seller would like to recoupe initial investment

Opportunities?
Due to location, opportunity to tap into existing residential and commercial areas. I owner with good mechanical oversight and passion for the industry will grow the business to great levels

Threats?
Normal market threats

8. Reason For Sale
What is the reason for the sale?
The Seller recently purchased the business. He has extensive past experience and area manager of competitor. The plan was to grow the site into a known and trusted fitment centre in the area. However, the Seller's wife has recently been diagnosed with a serious illness and unable to give the attention planned. The Seller will be spending more time with the family

9. Conclusion
Why is this a good business?
Brand name and location

Property information

Premises details:

5. Premises
When does the current lease end?
+- 3 years remaining

Is there an option of renewal & what period?
3 years

What is the annual escalation %?
8%


What is the square meterage of the business?
+- 600sq

Size in square feet:

600m2

Business Operation

Competition / Market:

Usual market competitors

Reasons for selling:

Seller's wife is seriously ill.

Trading hours:

Monday to Friday 8 am to 5 pm, Saturday 8am to 1pm

Employees:

7

Years established:

5

Franchise terms

Franchise opportunity:

Yes

TBC

Other information

Support & training:

Full franchisor and seller handover

Furniture / Fixtures value:

R550,000

Inventory / Stock value:

R250,000