Ad ID: 54260 Inactive

Books and Gifts Direct Franchise for Sale Auckland

Asking Price: $3,800,000 Purchase stock only, no goodwill. Payment plan on stock expected. EBITDA: $397,000  EBITDA

Location:
Asking:
$3,800,000
Purchase stock only.

Franchise for Sale Description

Books and Gifts Direct Franchise for Sale Auckland

Books and Gifts Direct Limited formed following the consolidation of the Australian and New Zealand operations of Lifetime Distributors “The Book People” Pty Ltd and Premier Books Limited.

Both businesses founded on the principle of selling quality products that appeal to a wide customer-base, at value pricing.  You’ve probably seen hundreds of their sample boxes, over the years. Usually at reception or in the lunchroom. Staff and regular visitors buy the latest books and gifts from them, for up to 70% off RRP.

No gimmicks, no seconds, just great value, quality books and gifts that you'd normally buy from your local specialty retailer, department store, book shop or on-line.

It is envisioned that the purchase of the business will be for the stock only, no goodwill. The business has not as yet realised the synergies from the merger of the two businesses and this will be to the benefit of the purchaser.

The ROI indicated is for a fully-managed business. A new owner can decide whether to take on the MD role or choose to leave as is and ‘work-on’ the business.

Existing Operators per Territory

Operators

NI

SI

Combined

Franchisees

19

9

28

Subcontractors

10

6

16

Distributors

5

0

5

Total

34

15

49

 

 

 

 

Clients

 

 

 

Workplaces

10,000

5,000

15,000

Average fortnightly visits

4,750

2,250

7,000

     

 

Business Resources

Key Features

  • Nationwide coverage throughout New Zealand.
  • Books and Gifts Direct is a preeminent market leader in the Display Marketing industry in New Zealand with ~15000 display boxes throughout NZ.
  • Buy the business for stock only, no goodwill.
  • New owner can continue to realise the synergies of the merging of the two businesses.
  • Products up to 70% off recommended retail price delivered 'free' directly to consumer.
  • Minimal competition in the market and significant barriers to entry.
  • Business is fully managed; a new owner is free to either ‘work in’ the business or ‘work on’ the business.
  • BGD Australia tests between 800-1000 new products per year, this is not required by the Master Franchisee, with the benefits of testing flowing to the master franchisee.
  • BGD Australia will assume the foreign exchange risk and supply products to the Master Franchisee in New Zealand dollars.
  • 58% books and 42% gifts with 46% of the range is Children’s products with over 600 SKUs.
  • Proprietary Business Intelligence System designed and owned by Books and Gifts Pty Ltd.
  • Terms of Trade with Franchisor average at 75 days. (60 days from month’s end).
  • Master Franchisor invoices Franchisee/Distributor weekly and are paid weekly, so MF has 30 days use of money before having to pay Franchisor.
  • Seasonal Cash Flow, anything ordered or shipped from the Franchisor after November 16th of any year is not due for payment until 30th April of following year.
  • No problems with excess stock with 2 Clearance sites in Auckland and 1 in Christchurch.
  • The supply chain and logistics is managed in-house to ensure on time delivery to NZ Master’s warehouse.
  • Exciting short-term and long-term growth opportunities.

If you are interested in this business please feel free to contact David at david@switchbusiness.co.nz

Please feel free to pass this document on to clients, friends, colleagues or any party you feel might be interested in this opportunity.

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