Highly Profitable Clarks Shoe Franchise Torbay For Sale

Business description

HIGHLIGHTS:
• Highly profitable Clarks Shoe Franchise - Torquay
• Superb location in the heart of the main retail area
• Comprehensive retail management support package
• High quality proprietary operating systems
• Finance available (subject to status)

BUSINESS:
The Clarks Franchise in Torquay represents an exciting opportunity to invest in and further develop a well established, profitable franchise with a solid customer base and settled infrastructure.

The store is located in Union Street at the heart of the town’s retail area and is served by c 1500 parking spaces in the immediate vicinity where the following other major retailers are represented:

Argos Superdrug
Past Times Hinds Jewellers
Game Monsoon
Boots New Look
BHS River Island
Primark McDonalds

Further along Union Street there is a Tesco Metro and in nearby Fleet Street the shopper will find Debenhams, Top Shop, Bon Marche and Edinburgh Woollen Mill.

A redevelopment is planned at the top end of Union Street to accommodate further retail space and restaurants and Waitrose have announced plans to open their first store in South Devon less than a mile away.

The premises comprise c 850 sq ft of retail space with a rear store and office of c 650 sq ft with a further stock room and facilities of c 400 sq ft at first floor level. Vehicular access is available to the front of the property with a delivery bay immediately outside the shop.

The business benefits from a computerised stock control and re-ordering system as well as comprehensive proprietary systems used throughout the Clarks group.

TENURE:
Leasehold

YEARS ESTABLISHED:
The business was originally established by the current owners in 1981.

EMPLOYEES:
The owners cover 39 hours per week between them and they are currently supported by 2 full time staff (37.5 hours each) and 2 part time staff (covering 39.5 hours).

TRADING HOURS:
Monday to Saturday: 9.00am to 5.30pm
Sundays: 11.30am to 3.30pm

SALES REVENUE:
The store has an enviable trading history and turnover of £521,667 was achieved in the year ended 31/1/08. Management figures indicate that this level has been maintained in the year to 31/1/09.

FRANCHISE TERMS:
The purchasers of the business, who will need to be approved by Clarks, will be granted a new Franchise Agreement which will run for 5 years and is renewable thereafter.

Under the agreement a royalty is payable bi-monthly at a fixed rate based upon a combination of turnover and profit margin achievements and then adjusted twice yearly to reflect actual performance. As a guide the current royalty equates to c 18% of turnover.

LEASE TERMS:
The head lease is owned by Clarks International Ltd and a sub lease is granted to the Franchisee on full repairing and insuring terms. The lease is currently in the course of renewal and will be extended until March 2013. Current rent payable is £52,762.50 including a 5% surcharge to Clarks. There is also a modest annual service charge relating to the building of c £12,000 pa.

LOCAL AUTHORITY:
Torbay Unitary Authority

RATES PAYABLE:
The premises have a rateable value of £43,250 and business rates of £19,980 are payable in 2008/9.



SERVICES:
The vendors advise that mains electricity, water and sewerage services are connected to the premises.

OPPORTUNITIES:
The profitability of the business is such that it would be viable for an investor to appoint a full-time store manager and have little day to day involvement if preferred.

The store is currently benefiting from the recent installation of a new Multi-Channel Retailing (MCR) system introduced by Clarks enabling customers to order footwear they have identified on-line to be tried on in the shop and this is expected to boost turnover further.

REASON FOR SALE:
Retirement

SUPPORT AND TRAINING:
The Franchisor provides a comprehensive but easy to follow and fully computerised retail management support programme including the provision of visual merchandising briefs on a weekly basis.

LIVING ACCOMMODATION:
None

DESCRIPTION OF PREMISES:
The premises form part of a multi-storey property built into a hillside with retail units at street level and additional space at first floor level, substantial offices above currently occupied by the Local Authority and a roof top car park accessed from the rear.

A full shop refit was last undertaken in 2004 and the Franchisor has confirmed that the next refit will not be due before 2013.

Imposing double fronted premises with plate glass windows set within aluminium frames above ceramic tiles from pavement level. A wide disabled access slope with non-slip tiled surface wide enough to accommodate external displays rises gently to twin fully glazed doors.

Retail Area (14.25m x 5.19m):

Rear Store and Office (11.28m x 5.26m):

At first floor level wooden doors open to:

WC:

First Floor Store (5.32m x 4.10m):

Kitchen Area (2.76m x 1.74m):

FULL PARTICULARS:
Please telephone or email for full particulars

GUIDE PRICE:
The vendors invite offers against an asking price of £150,000 for the franchise goodwill, fixtures and fittings plus stock at valuation.

VALUE OF STOCK:
The vendors advise that stock usually has a value in the region of £50,000.

COMMENTS:
Opportunities such as this are rarely available. The Torquay franchise has delivered very substantial profitability on a consistent basis over the years and the strength of the Clarks brand together with its reputation for high quality products ensure that the business remains robust in the face of changing economic conditions.

Property information

Property:

Leasehold