Fully describe the business's activities?
This business is part of a strong and well-known franchise group which provides affordable services and repairs to all types of cars and bakkies.
How long has the business been established?
Seven years
How long has the owner had the business?
Since Inception
How does the business operate on a daily basis?
Clients will come/phone in and receive a quote, client will instruct which services should be performed and drop off the car, payment will be made when car is picked up.
How are the clients attracted to the business?
The franchise is very well-known for its efficiency and good service resulting in repeat customers and word of mouth referrals
What Advertising/Marketing is carried out?
Advertising is done by the franchisor, and each franchisee pays 2.5% of turnover towards this on a monthly basis. Each franchisee is strongly advised to also advertise in their own area via pamphlets, etc.
The business has recently been revamped and has the latest look and feel
Does the business have any contract work?
No contracts but there is a huge opportunity for the new owner to establish various contracts as desired
What competition exists?
There are a few small workshops in the area.
What are the seasonal trends?
It does tend to be busier before school holidays commence
Is the business VAT Registered?
Yes
Are there up-to-date Management Accounts available?
Yes
What Balance Sheet and Income Statements are available?
Financial statements
What percentage of the business is cash/credit?
The business does not have credit accounts all transaction are either cash, card payments or EFT
What is the age analysis of the debtors book?
None - vehicles are released upon payment received
How could the profitability of the business be improved?
By adding more specialized tools and equipment
What is the total staff complement?
7 employees
Give a breakdown of staff/ functions/ length of service?
Receptionist 4 years
Service advisor - 5 years
Qualified technician - 4 years
Skilled technician - 6years
Skilled technician - 4 years
Workshop Supervisor 3 months
Are they on contract?
Yes
Do any have management potential?
Yes
How involved is the Owner in running the business?
Owner does site visits twice a week
When does the current lease end?
2029/09
Is there an option of renewal & what period?
Yes, 5 year renewal
What is the annual escalation %?
5%
What are the trading hours?
Weekdays: 07:00 â 17:30
Saturdays: 08h00 â 13h00
What is the square meters of the business?
240
Is a copy of the lease available?
Yes
Do you require a licence?
No specific licence required
What lease deposit and/or other surety is required?
2 months deposit
What are the main assets of the business?
Workshop equipment
Furniture
Computer equipment
Are any items not included in the sale?
Yes
What is their overall condition?
In working condition
Do any require repairing?
No
Which assets are on lease/HP and with whom?
None
Are copies of agreements available?
Yes
Are they presently insured?
Yes
Strengths?
Established national brand. Part of the franchise network, giving credibility, trust and national marketing reach.
Strong customer value proposition - Free vehicle checks, pensioner discounts, genuine parts, and certified Motor Retail Industry Partner status.
Broad service offering- - Services all makes and models, covering repairs, replacements, major/minor services, and convenienceâbased payment options.
High convenience and accessibility - Central location with long weekday hours and Saturday trading.
Weaknesses?
Local market size limitations - Queenstown/Komani is a midâsized town with slower population and vehicleâownership growth compared to major metros.
Dependence on brand standards - As a managed franchise branch, strategic flexibility may be limited by national policies and pricing structures.
Potential staffing constraints - Skilled automotive technicians are scarce in smaller towns, affecting capacity and turnaround times.
Opportunities?
Growing demand for affordable vehicle maintenance - Economic pressure increases demand for reliable, costâeffective service centres rather than dealership servicing.
Expansion into fleet servicing - Strong presence of government departments, logistics operators, and miningârelated businesses that require fleet maintenance.
EV and hybrid readiness - Although slow in rural areas, early adoption of EVâcompatible diagnostics and servicing can position the branch ahead of competitors.
Partnerships with local businesses - Taxi associations, delivery services, and corporate fleets present recurring revenue opportunities.
Regional dominance - Limited competition compared to larger citiesâopportunity to become the preferred service centre for the broader district
Threats?
Economic strain in the Eastern Cape - Lower disposable income affects vehicle maintenance frequency and average spend per service.
Competition from informal mechanics - Priceâdriven customers may choose cheaper, uncertified alternatives.
Rising parts costs - Imported parts volatility (exchange rate fluctuations) can reduce margins.
Vehicle technology complexity - Modern vehicles require advanced diagnosticsâbranches must continually invest in equipment and training.
What is the reason for the sale?
Owners are relocating
Why is this a good business?
Well-known brand resignation
Proven business model
Training and support available
The business is situated in a good location.
Good database of clients with repeat business
Annual Turnover Amount between R 500 thousand and R 6 million