OAKFERN Business Marketing Services

Bakery and Coffee Shop

1: Location:

This Bakery and Coffee Shop is located in the Southern Suburbs of Johannesburg, South Africa.

2: Turnover:

Turnover values and financial information is available on request. Turnover consists of proceeds of sale of meals, take-away food, bread, confectioneries, cigarettes, cooldrinks and liquor served at the tables.

3: Liquor Licence:

The Bakery and Coffee Shop has a full liquor licence.

4: Current Ownership:

The Bakery and Coffee Shop was founded in 1985. The Bakery and Coffee Shop is owned by the founder, who intends selling the Bakery and Coffee Shop on the franchise principle.

5: Franchise Support:

The founder intends giving the purchaser extensive initial support, including a period where both the new owners and the existing owner will be present in the Bakery and Coffee Shop. This period is envisaged to last as long as the new owner requires day to day support in running the Bakery and Coffee Shop and the kitchen.

The support includes all menus, and recipes for dishes contained in those menus.

6: Monthly Franchise Levy:

To be negotiated.

7: Consistency of Accounting Standards and Reporting:

The franchise agreement will provide for continuity of accounting procedures and standards, as well as for the monthly reporting of key figures to the franchise owner. This will be achieved by virtue of the contractual retention of a accountant specified by the franchise owner.

Then intention of this provision is not to limit the scope of the new owner, but to ensure that the franchise is successful, and to enable to franchise owner to provide specialised advise and assistance should the financial or marketing circumstances of this franchise require such assistance.

8: Cashflow and Cost of Sales:

Cashflow is directly based on turnover.

In the food industry, part of the secret to success is good quality food, while on a cost basis another part of the secret to success is the prevention of wastage, including food prepared but not sold. By definition quality food precludes prepared food being used again. Therefore food prepared but not sold form a big portion of total wastage.

9: Owners Income:

Available on request. Obviously the ideal is that the owner take as little as possible out of the Bakery and Coffee Shop, and re-invest as much as possible, thereby ensuring that maximum growth is achieved.

10: Rental Agreement:

The shop has a long term rental agreement at very advantageous rates. The agreement includes a option to renew the rental at equally advantageous rates.

11: Shop Interior:

The interior of the shop is modern in concept, with extensive use of quality wood panelling and wood shelves behind the counter. All display units, including counter fridges, are finished in matching wood finish.

12: Sales Price:

The sales price of the franchise, inclusive of all equipment, furniture, fixtures is R450 000 negotiable. The purchaser can decide if existing stock is to be taken over, in which case stock will be transferred to the purchaser at cost price.

In Conclusion:

This Bakery and Coffee Shop is a profitable existing business, that provides sufficient scope for the entrepreneur. The customer base is strong, with a large number of customers purchasing goods on a regular basis.

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