Franchise Food business for sale - Johannesburg

Monday, 19 September 2011

Item details

City: Johannesburg, Gauteng
Offer type: Sell
Price: R 720,000
Full Square, m²:50


Contact name
Phone 0829511169

Item description

The retail, fast food outlet is situated in a major shopping center in the north of Johannesburg, it is the second busiest entrance in the shopping center with a ‘feet count’ of 800 000 customers a month.
The franchise fast food business opened its doors 10 years ago and with the previous owner for 2 years. The seller would like to sell, since he has more outlets and is now the new business developer of the franchise group.
There are 3 permanent staff members with an average of R 6K- R 8K in wages. At the moment the annual grows is 5% - 7% and can be definitely increase if the food outlet is managed by the new owner as well if a new owner could negotiate with the landlord if he is willing to decrease the rent which is +- R 28K (incl. electr./ water/levies).
Average monthly turnover: R 145K, average monthly net. profit R 20K.
To set up a new shop (franchise) would cost R 570K the value at the existing shop is worth + R 400K (replacement value) All equipment/assets under warranty and mostly new. The shop does not need a revamp for at least 5 years.
To bring the business to a higher level a new owner could increase the seating area. (At the moment 10 seating places).
There are now monthly franchise fees but excellent support from the franchisor ongoing staff training etc.
A one off franchise joining fee is included in the purchase price.
Purchase price R 720K (only cash offers are accepted).