Supa cool franchise outlet for sale down south

This Wendy's Supa Sundaes kiosk is in a prime position in the Christchurch suburb of Shirley. Photo / Supplied

The Wendy's Supa Sundaes franchise kiosk within The Palms, in the Christchurch suburb of Shirley, is on the market at $165,000, plus GST, if any, through Seanna Donaldson, business broker with Harcourts Grenadier Business Brokers in Madras St, Christchurch.

"This busy kiosk has a prime position in a high foot traffic area close to a Countdown supermarket and other customer drawcards, like The 123 Mart, ASB Bank, Digital Mobile and a Wild Thingz/Lotto store," Donaldson says.

"Following a refit of the former Woolworths into a Countdown supermarket last year, the vendor says the foot traffic and sales have noticeably increased."

Donaldson says the supermarket, which anchors The Palms shopping centre, is ranked within the top two in the South Island for sales and the centre is trading up about 14 per cent a month in comparison after the refit.

"The current owners started trading in this Wendy's Supa Sundaes franchise in July 2005 and it has increased its gross margin profitability for 2010 with increased expectations for next year. They have genuine reasons for sale, so a new owner could reap the anticipated future benefits."

Donaldson says Wendy's Supa Sundaes has been a recognised franchise brand for more than 30 years and The Palms outlet is one of more than 300 stores spread across Australia and New Zealand which report 750,000 customer visits weekly and which generate a combined turnover exceeding $129 million annually.

The network of icecream retail stores was launched in Adelaide, South Australia, on July 31, 1979, and in 2006 the chain was bought by Navis Capital.

"This is a brand that has repeat purchases and customer loyalty. A key element of the Wendy's franchise success is simplicity and for an operator, there are no long hours spent preparing food or cleaning machines.

"Their popular treat range can be enjoyed at the mall, a family celebration, or an office party and includes scoop cones, frozen yoghurt, shakes, hot dogs, SupaSoft face cones and icecream cakes."

Donaldson says the master franchisor develops products for franchisee outlets. "They were the first to offer icecream cupcakes in April this year, along with their current winter hot treats, which include hot chocolate pudding, hot mocca shake and hot choc caramel shake."

A six-week comprehensive training schedule is provided for new franchisees, which includes in-store training and a week at the group's national office in Adelaide followed up with ongoing support.

Franchisees receive training in customer service, local area marketing, merchandising, operational procedures and management.

Follow-up assistance is provided by a staff of business coaches in the Adelaide head office, and a team of marketing and IT professionals and product development technicians.

Donaldson says the Wendy's Supa Sundaes kiosk has a big advantage being in The Palms Shopping Centre, where 38 per cent of the customers have been identified as big spenders.

The Palms is a fully enclosed centre on one level which opened in 1996. During the past 12 years it has undergone two developments to keep pace with the marketplace.

In addition to the Countdown, the centre has Kmart, Farmers and an eight-screen luxury Readings Cinemas. The centre also houses Noel Leeming, Bond & Bond, Life Pharmacy and 100 specialty retailers.

The Palms has an outdoor dining and bar area, The Arena, with three restaurants and bars. It is near nine schools, has more than 1450 car parks with 640 under cover and is on a major bus route.

Retailers in the centre were recently advised that, because of the changing needs in the community and "the long-term planning and vision for The Palms Shopping Centre", a resource consent for its possible expansion was being considered by the Christchurch City Council.

Donaldson says the sale provides an opportunity for a new owner/operator to reap the rewards from a successful business with a strong support system.