How does the business operate on a daily basis?
We quote based based upon the result of the diagnosis. In most cases we require a deposit of 60% to secure materials and labour. We execute the work to the exacting standards of the franchise and in accordance with the numerous standards of the various regulatory bodies to whom we are affiliated, eg MIO, RMI, MIBCO, MIWA. We provide our clients with a 6 months or 10 000 km RMI guarantee.
We have a senior advisor who is technically sound and he deals with the clients, manages the workplan on the floor can quote and arrange materials and parts.

How are the clients attracted to the business?
Word of mouth, secure in knowledge of brand - synonymous with transparency, first time right, quality work. Pricing is more competitive than most branded dealerships and far superior to backyard operations - our labour rate can be 1/3 that of an OEM.

What Advertising/Marketing is carried out?
National advertising on radio, TV, social media based on national budget, including car-shows. All franchisees contribute to the advertising budget monthly and this is accumulated by Head Office for various ongoing marketing campaigns.

Does the business have any contract work?
Yes, government work including extended warranties accounts for 50% of revenue. Currently onboarding a major motor vehicle finance company that have recognised the reputation of this business. They will be sending us out of warranty vehicles for servicing.

What competition exists?
Either OEMs which are far more expensive or backstreet operators who are not reliable and do not work to any regulatory standards.

What are the seasonal trends?
Busier periods do coincide with holidays and long weekends.

How is income derived?
Clients contact us for a service or repair for a malfunctioning car part. We diagnose the problem and provide the client with a quote to undertake the repair work. If accepted the client generally pays a 60% deposit and we then execute the work to franchise and affiliate standards and provide a 6-month or 10 000km warranty. The balance of 40% is paid prior to return of the vehicle to the client. We offer overhauls of brake, clutch, engine overhauls, suspension, and gearboxes including bearing replacements and full diagnostics.

How does the franchise operate on a daily basis?
This is covered above under what advertising/marketing is carried out.

Does the Head Office assist in securing contracts (if applicable) or is it up to the individual franchisee's to do this?
The individual but support is available if required.

What advertising and marketing is undertaken on a group basis and what is the individual franchisee expected to do?
This is covered above.

Is the business VAT Registered?
Yes

What VAT documentation is on file?
Yes

Are there up-to-date Management Accounts available?
Yes

What percentage of the business is cash/credit?
80% eft and 20% extended warranty and govt contract

What is the age analysis of the debtors book?
Current - less than 30 days

How could the profitability of the business be improved?
Cash investment
In house air con services
In house brake disc machining
Employ an auto-electrician

Is Seller finance available and for what amount?
No

What is the total staff complement?
3.

Give a breakdown of staff/ functions/ length of service?
1. Service advisor - 1 month
2. Qualified mechanic subject to SAQWA - 9 months
3. Assistant - will qualify July - 4 years

Do any receive special perks or incentives?
Incentive structure in place based on target achievement

Are they on contract?
2 - yes.
I not

Do any have management potential?
Yes, service adfvisor

How involved is the Owner in running the business?
Daily: owner operational but involved.

When does the current lease end?
October 2025.

Is there an option of renewal & what period?
3 years with option to renew for 3

What is the annual escalation %?
8%

What are the trading hours?
Monday to Friday 07h00 to 17h00
Saturday 08h00 to 13h00

What is the square meters of the business?
400 m square occupied

Is a copy of the lease available?
Yes

Do you require a licence?
Yes- with franchisor.

What lease deposit and/or other surety is required?
Yes, 75 000.00

What are the main assets of the business?
2 poster ramp
Compressor
Bearing press
Oil drainage machine
Jack stands
Small tools - specialised and standard tool boxes

Franchisor will conduct detailed audit and handover to ensure fully stcoked per spec.
Computer and 8 cameras
Furniture for waiting room and office

Are any items not included in the sale?
1. Ladder - wooden
2. 2 x microwaves
3. Portable office fan
4. Personal effects
5. Bar Fridge

What is their overall condition?
All in working order

Do any require repairing?
No

How have they been valued ?
Purchase price less fair wear and tear. AFS with depreciation allowed.

Which assets are on lease/HP and with whom?
No

Strengths?
Reputation for quality, integrity and transparency, strong franchisor values
Commercially cost competitive
Offer service and repair
Exceptional accreditation/recognition
Immediate revenue stream
No aged debtors book
Offer a waterless car wash
5 star accreditation with MIBCO and MIYWA

Weaknesses?
Failing to match unrealistic client expectations

Opportunities?
Invest in plant and equipment to avoid outsourcing
Upsell - need competent staff to do so
Aggressive marketing campaigns

Threats?
To maintain the revenue stream - opposition equally aggressive on price.
Franchise 13km away.
Only have 5km exclusivity.

What is the reason for the sale?
Owner required to relocate due to ill health of his wife

Why is this a good business?
Nearly 5 years track record, established market, numerous affiliations. .Large Motor Vehicle Finance house about to sign supply deal. Have contract work. No debt. Existing market. Excellent HO support. No franchise joining fee.

How are Projected turnovers and profits calculated?
Work off excel revenue sheet - record all sales and back up to separate book and they must reconcile. Work off Evolv with HO. Have an annual budget.

What is the Franchise joining Fee?
R 1.5 M - not required to be paid for this existing franchise.

What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
No royalty based on turnover. We pay standard fee between service for HO support and site visits, advertising nationally, and tablet licensing.

What extra marketing and advertising should a franchise budget for?
Covered by HO but could add to social media and radio if budget allows.

What assets are included in the purchase price?
As per asset list to be provided.

Is the franchisor supplying all assets or can the franchisee source these items himself?
Initial start up by franchisor then up to owner how to set up asset base.

Is stock supplied with the initial franchise setup (if applicable?)
N/A

Will stock purchases be solely from franchisor in the future or can the franchisee pruchase from other suppliers?
Can buy from other suppliers - only have to buy car wash equipment and all franchise branded accessories from franchisor.

How many staff members are required to successfully operate the franchise?
Min 3 ideally 4

What training is provided for new franchisees and staff members? Is there a cost associated with this?
Yes - no cost. Refresher courses every quarter.

Where will training take place and for how long?
Have regional offices .

What support and backup is offered to the franchisee?
National advertising
Audits of workshop and offices
Training

Does the franchise have to be owner operated?
No not necessary - can put in manager.

What type of premises do a new franchisee require to operate the franchise?
NA

Can the franchise be operated from home?
Not ideal. Can manage remotely but need competent manager on the floor to deal with technical issues and clients.

Will the franchisor assist in identifying or acquiring premises and will assistance be provided with negotiating the lease on behalf of the franchisee?
NA

How many franchises will be allocated to each Area/ Province?
Allocated an area to work within.

Will upgrades to the premises be required and if so how often will this occur?
Owner makes decision to upgrade. HO will insist on maintaining the image at owners cost.

What skills and background is the franchisor looking for in a prospective franchisee?
Good business acumen
Not necessary to be technical

Is there any industry regulations or licenses needed to operate the franchise?
Need a licence from HO. Must be RMI accredited and then automatically affiliated to MIBCO.

Strengths?
National footprint
26 years in business
+ 50 franchisees
Good reputation
Member of FASA

What is the full purchase price of the franchise (incl VAT)?
R 2.Million.

What is included in the purchase price and breakdown of various costs?
Assets, tools, equipment, franchise licence fee. 100K in budget for upgrade to premises.

Does the franchisor offer finance?
No

Do any of the Bank or Financial service providers recognises this franchise and will they offer any form of finance?
Yes, many banks require a trading history of 12 months which this business can provide, in order to secure finance.

How many months working capital will the franchisee require?
When this franchise was started the owner had 12-months working capital - but that was for a new business which had to be established.

When will a franchisee be able to start drawing profits from the franchise?
In this case immediately, depending on the management of expenses.

How much unencumbered cash is needed from prospective franchisee?
Owner estimates 300K.. Creditor accounts are 30 days and business is run on immediate payment so easy to manage cash flow.