Summary
Exciting chance to acquire an established franchise without ongoing royalty obligations. While a new franchise typically costs R400,000, this existing store, though relatively new and still growing, is up for sale.
Despite operating at a loss since its inception, the business has been steadily building its customer base, especially in the corporate sector, presenting an opportunity for hands-on management. Although there are current resellers, expansion into various areas is feasible. With a remarkable 183% sales growth in 2023, the potential for breaking even and turning a profit is substantial.
With targeted marketing strategies and a clear direction, this business could evolve into a highly lucrative venture with minimal additional investment. The primary reason for sale is the lack of hands-on ownership, which has hindered growth.
Traditionally, businesses are valued based on a P/E (Price to Earnings) ratio of 3, plus stock. However, in this case, the valuation is based solely on the cost of a new shop plus the current stock value. The new franchise cost is R400,000 with no joining fees, and the estimated stock value ranges between R80,000 and R100,000.
The entire business, along with all assets, is available for purchase at R350,000.
Seize this opportunity to invest in a business with promising growth prospects and no ongoing royalty commitments.
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