Price Attack Franchise For Sale

Business description

Well known retail franchise in haircare products and accessories plus hairdressing services. Over 100 franchises nationwide.
Full tax returns are available for due diligence. Shows steady growth over 10 years.

Franchise terms

The “Price Attack” Franchise commenced in 1986 and now has 131 stores operating nationally. 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 “Price Attack” image and brand awareness due to a larger advertising pool being available for promotions. The company was sold to New Clicks Australia in 2000, and subsequently sold to another public company called “API Ltd”. The company was then sold to Barry Jarrad, an existing franchisee, in 2007.The Franchise fees are 5 % of sales and the advertising levy is 3% of sales. The Franchisor is strongly committed to the development of its Franchises and has an excellent reputation within the Franchise industry.

Property information

Real Estate:

Lease

Lease terms:

The current 6 year term commenced April 2003 and expires April 2009. There are no further options. A Buyer will negotiate a new lease with the Landlord
Base rent is $12180 pm plus GST increasing CPI + 1.5% annually.
Outgoings $1167.47 pm + GST.
Promotion levy $548.10 pm + GST
Storage $212.92 pm + GST
Permitted Use: Hair dressing salon and retail sale of all products associated with Price Attack concept including hair care, cosmetics, designer fragrances and associated beauty products and accessories.
Bank Guarantee: $50,600 currently - a bank guarantee is acceptable.

Location:

The store is located on level 1 in an upmarket Shopping Centre in the North/West Sydney area developing at an erormous rate. This is an extremely well-known centre and the new railway line to Chatswood is nearing completion.
The size of the store is 88 m2 including a small back office/storage room.
The store includes 2 stations for hairdressing services with all the equipment, including a washing machine and dryer.
There is also an additional storeroom of 8m2 used for stock.
The store was refurbished in a few years ago 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 nearby for additional storage of strock.

Other information

Expansion potential:

Current owner works 2 days a week. A full time owner could conceiveably do better.

Competition / Market:

There are stand-alone hairdressers in the centre but Price Attack is a well known retail stores selling a huge variety of retail products as well as providing a hairdressing service, all unde rthe one roof.

Support & training:

Upon joining the Price Attack Franchise network, each new operator undertakes comprehensive training both in product knowledge and store operation. As part of the system, they offer new franchisees the service of active, ‘Store openers’…active field staff from support office who help you identify pit falls facing the ‘first timer’. Price Attack does not believe in ‘Sink or Swim’. They ensure assistance at all times.

Reasons for selling:

After 10 years the owner wants to retire.

Trading hours:

8.30 am to 5 pm

Financing available:

No but Franchisor works with a Bank to secure finance for Franchisees.

Furniture / Fixtures value:

$85,000 (included in the asking price)

Inventory / Stock value:

$150,000