Baby Spa, specialising in Hydrotherapy. Proven successful Franchise in the UK, and the first of its kind in South Africa. Magnificent set up in standalone owner owned Property.
It would be a privilege to own this extremely successful UK Franchise, because the UK have proven how profitable it can be, and secondly, not only could it become a successful business in South Africa, but there are huge Franchise opportunities throughout South Africa.
It is a unique concept with big demand including amazing benefits for kids, including medical benefits.
The performance to date has been dismal, and therefore, we are valuing it based on the assumption that the new owner will be starting from scratch, as if he had just bought the franchise, and was setting it up. Of course, the small goodwill already created, will cost nothing.
THE PROPERTY, which has been rezoned to Business 3, has been valued between R3.2 to R3.5 million, by a reputable Estate Agent. The Municipal Valuation is R1.6 million, which would be in line with the normal market value being about double the municipal value. Renovations and improving the property to what it is now, cost an additional R1.5 million, to the actual cost of the property.
THE BUSINESS – Reasonable projected net profits for the first year of business, reflect an expected Net Profit of R827,000, excluding Rental income of R100,000 p.a. and including a Franchise Fee of 10% of Gross income, and a Nurse’s Fee of R10,000 per month, both of which are not being paid, although included for these purposes. Cost of Set Up was approximately R1.5 million, being about R920,000 Franchise Fees and Equipment, plus about R600,000 being for extra furniture, decor etc. Physical Assets including equipment, pools and furniture cost approximately R600,000
SELLING FOR R4,5 million Including the Property.