Lollipop's a sweet deal for playful purchaser

Lollipop's Playland & Cafe includes equipment such as a merry-go-round. Photo / Supplied

Lollipop's Playland & Cafe, on the corner of Vialou and Liverpool Sts in the Hamilton CBD, is being offered for sale as a business going concern through Nick Stevens of Link Business Broking in Ellerslie for an asking price of $395,000 exclusive of GST, but including stock at valuation estimated at about $8000.

"Lollipop's Playland & Cafe is a 'pay for play' children's indoor playground," Stevens says.

"The owners are looking for a change after having operated this business successfully for over eight years.

"The franchised businesses are designed to be safe and secure centres where kids can have hours of fun climbing, sliding, bouncing and spinning while parents relax over a cup of coffee from an on-site cafe."

Lollipop is the name of the cat mascot which brands the business. First set up in New Plymouth in 1993, Lollipop's now has six sites in New Zealand, 14 in Australia and two in Indonesia.

All the indoor playgrounds are owned individually and operated by franchisees, with master franchisees managing each country's businesses. Lollipop's sites include multi-level play frames, a merry-go-round, ride-on cars for toddlers, bouncy castles, dedicated toddler areas, a cafe, birthday-party venues and quiet areas.

"Lollipop's Playland, Hamilton, should be viewed as a structured enterprise that will appeal to a purchaser looking for a business with excellent profits, with minimal administration and with a successful franchise system in place.

"This is a top-achieving Waikato business that will suit 'hands on' owner-operators, not investors or corporates, and overall it is suited to a husband-and-wife team. For the right couple it can be easy, fun work with reasonable hours and a casual atmosphere. Staff are easy to find and attract."

The Hamilton Lollipop's Playland has two full-time employees in key positions with 19 part-time positions.

"For year 2010 the business reported a healthy six-figure net profit, but there are growth strategies in place that could incarease this," Stevens says.

"In particular the Oscar [Out of School Care and Recreation] after-school care programme could be implemented by a purchaser to provide potential further substantial annual income."

Stevens says the business could further be developed with external cafe sales and catering to surrounding businesses.

"The Hamilton centre would also benefit from the purchase of three new pieces of play equipment to complement existing equipment."

Stevens says the sale of the Hamilton operation represents a significant opportunity to enter the play-centre business with the support of the most experienced operator in the region.

The business is open seven days a week from 9.30am to 6pm and operates 361 days of the year.

The six-year lease of the property in which the business is located commenced in February 2011, is held by a family trust and managed by a lease company.

"There is one further right of renewal with terms and conditions that can be renegotiated with the landlord who is happy to keep such a prominent business as their tenant."

lollipopsplayland.co.nz