Franchise Applicance Repairs & Spares Business In Centurion For Sale

Business description

History Background
Fully describe the business's activities? This business is a franchise that repairs and supplies spares to all makes of domestic applicances in the Centurion area.
How long has the business been established? The franchise was founded in 2002 and now has 20 branches.
How long has the owner had the business? This branch has been opened for 5 years and has been with the owner for 9 months.
What steps are in place to solve "load shedding" problems? The shopping centre has a generator
Present Market
How does the business operate on a daily basis? This business operates weekday and Saturday mornings. Machines for repair are colleted or delivered by customers. An evaluation quote is given, if accepted the machine is repaired and returned.
How are the clients attracted to the business? Advertising, a trailer with advertising is placed in the centre
What Advertising/Marketing is carried out? National advertising, brochures, magnets, vehicle branding etc.
Does the business have any contract work? Yes, various house letting companies and auctioneers
What competition exists? There are a few competitors in the area but mostly one man entities
What are the seasonal trends? None, machines break down all the time
Financial
Is the business VAT Registered? Not vat registered as the turnover is still too low.
Are there up-to-date Management Accounts available? Up to date management accounts are available
What Balance Sheet and Income Statements are available? 2007 / 2008 and 2009
What percentage of of the business is cash/credit? Mostly a cash business
How could the profitability of the business be improved? To do more marketing and employ another technician
Is Seller finance available and for what amount? No seller finance is available
Staffing
What is the total staff complement? There are 2 technicians, driver, carrier and the owner / manager
Do any receive special perks or incentives? No incentives are in place
Are they on contract? Letters of appointment are in place
Do any have management potential? No management potential
Premises
When does the current lease end? Present lease expires in 2011
Is there an option of renewal & what period? Yes, renewal is in place
What are the trading hours? 8am to 5pm Monday to Friday and 9am to 1pm on Saturdays
What is the square meterage of the business? 67m2
Is a copy of the lease available? yes, copy of the lease is available
Do you require a licence? No licence required
Assets
Is a full asset list on file? yes, asset list is available
Are any items not included in the sale? No items will be excluded from the sale
What is their overall condition? Assets are in good condition
Do any require repairing? None of them require repairing
How have they been valued. ? By the owner
Which assets are on lease/HP and with whom? Only one vehicle is on lease
Will Seller settle or Buyer to take over? Seller to settle
Are copies of agreements available? Yes, copies of agreements are available
Are they presently insured? Yes, assets are insured
S.W.O.T. Analysis
Strengths? Dominent market position, always in demand, community based, established franchise
Weaknesses? Recalls
Opportunities? There is lots of potential with the right owner / operators
Threats? None perceived
Reason For Sale
What is the reason for the sale? The owner has other business interests
Conclusion
Why is this a good business? This is a solid and established franchise with backup and not seasonal
What is the price plus stock and the net profit? Priced at R550 000 with a monthly net of around R20 000 per month. Payback in 27 months

Property information

Real Estate:

Lease

Other information

Furniture / Fixtures value:

R75,000 (included in the asking price)

Inventory / Stock value:

R25,000 (included in the asking price)