LEADING NATIONAL BRANDED FRANCHISE HARDWARE STORE FOR SALE (Eastern Cape) - COMES HIGHLY RECOMMENDED.
Short Summary::
This franchise is a division of a company, which is listed on the JSE. The core business of this hardware retail store is the supply of building materials and hardware.
Listed price
Amount::
6,000,000
Currency::
South African Rand (ZAR)
Total Annual Sales
Amount::
13,000,000
Currency::
South African Rand (ZAR)
Owner Cash Flow: Business Profits including Owners Drawings
Amount::
1,500,000
Currency::
South African Rand (ZAR)
Fixtures, Furniture & Equipment::
1,500,000
(included in price):
Yes
Real Estate::
0
(included in price):
No
Inventory::
1,500,000
(included in price):
Yes
Financing / Terms:
None available.
Reason for sale:
Owner likes to initiate businesses and not maintain them. He then moves on to new challenges.
Training & Support:
Full training and support will be offered.
Business Description:
This retail outlet is independently owned and together with the Franchisor, operate as a voluntary trading group. Each store is owner managed with team leaders assigned to control different area of responsibility.
Historical Summary:
Owner has initiated the business in 2005 and operated it since, increasing the turnover from 0 to nearly R12.7m. Currently margins have fallen due to the economic slowdown, cost reduction measures introduced are beginning to improve the businesses financial performance.
Potential for Growth:
Once the economy has turned there will be good potential for growth as the business is relatively new. This business targets the coloured communities in their area of operation. Corporate retrenchments and cutbacks have hampered growth during the recent recession. The current shopping mall enjoys good support from the coloured communities living in this area. With disposable income set to increase again in the near future as the economy improves prospects for 2010 look good.
Special Requirements for New Owner (if applicable):
A knowledge of the building industry and managing a retail operation would be beneficial.
Competition::
There is no new competition anticipated however measures have been taken to limit the impact of this on the business if it should materialise. The franchise brad is also very strong and prices competitive.
Form of Ownership:
Private Company
City:
Port Elizabeth
Province:
Eastern Cape
Relocatable:
No
Type of location:
Onmain road in shopping centre
Square Footage:
1000
Facilities / Location Description:
Nicely branded modern retail store with ample parking.
1000m2 building; 1400m2 yard.
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