House Franchise For Sale

Franchise terms

The “House” Franchise commenced in 1978 and now has approx. 105 stores operating nationally. The origins of the stores were initially in Victoria. The Franchisor has embarked on an expansion drive and a number of new stores have been opened in the past years. This will help to increase the “House” image and brand awareness due to a larger advertising pool being available for promotions. The Franchise fees are 4% of sales and the advertising levy is 2% of sales. The Franchisor is strongly committed to the development of its Franchises and has an excellent reputation within the Franchise industry. The Franchisor assists Franchisees in negotiating new leases, the design of stores, training, merchandising, and negotiates bulk discounts with Suppliers for the benefit of the Franchisees. The Franchise agreement is for a period of 5 years with a further option of 5 years. The assignment and hence purchase of this business is dependent on the approval of the new owner by the Franchisor. The new owner must work in the business.

Business description

"HOUSE" FRANCHISE
The business is part of a National franchise operation operating as a retail store selling a comprehensive and varied range of high quality Home ware, Kitchenware and Giftware with a strong bias towards kitchenware, an area ignored by the majors to a large extent.
There are now over 100 “House” franchise stores in Australia and the Franchisor is owned by a well known specialist retailing group and boasts exceptionally strong management.
The store is well managed and has experienced staff.
A fantastic opportunity for the right Buyer willing to work in the business.

Property information

Real Estate:

Lease

Lease terms:

Term:5 years commenced 17 October 2005 expires 16 October 2010. There are no further options.
Base rent:$82,582.50 pa plus GST increasing 5% annually.

Outgoings:$1,109.67 pm + GST. This includes air conditioning, land tax, water rates and municipal rates.
Promotion levy: $2,477.48 pa plus GST- equating to 3% of minimum annual rental plus GST
Storage: $227.50 pm plus GST.
The modest sized storeroom is located about 50 metres from the shop and near to the delivery dock. This is a huge advantage for this store especially during the peak Xmas trading period and enables the store to adequately stock itself to take full advantage during the peak trading times.
Bank Guarantee: $8602.70

Location:

The store is located in a community shopping centre located in the Hills district.
Extensively refurbished in 1998, this Mall is a modern shopping centre featuring Big W, Woolworths, Coles and 70 specialty shops. There are over 1,100 undercover car parks with easy access to the one level shopping mall.
The Mall caters for everyday shopping needs in providing a varied mix of specialty stores.
There are free facilities whilst shopping such as the Children's Play Area, Electric Scooters, Wheelchairs and Walker for the mobility impaired.
The size of the store is 121 m2 including a back office/storage room of 8 sq. met.
The store was refurbished in July 2006 and is extremely attractive with its product range well displayed. The store design and layout is in accordance with the specifications of the Franchisor who employ professional designers to update the designs on a regular basis.
There is an external storeroom near to the existing store which is recommended and provides a useful overflow for any stock deliveries.

Other information

Expansion potential:

The sore is run with a manager. An owner/operator should substantially increase sales.

Competition / Market:

The main competitors are Mansours (mainly linenwear) and the chain stores. However these stores do not offer the service that a typical “owner/operator” store can offer as they are staffed by Employees. The “House” brand has its own distinctive image and welcome competition to distinguish their good quality product range and good prices to the public

Support & training:

Compulsory training is provided by the Franchisor.

Reasons for selling:

The owner does not work in this store and is pusuing a career elsewhere.

Trading hours:

91m to 5 pm

Financing available:

No only from a Bank

Furniture / Fixtures value:

$500,000

Inventory / Stock value:

$65,000

Contact the seller

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