Company with an official representation of a cosmetic brand and two stores

Basic information

The subject of sale is a company operating two stores and an e-shop with a cosmetic range. The company has an official representation in the Czech Republic of one of the most famous, globally successful cosmetic brands. The company has been operating for 12 years and during this time has gained a stable position on the market and a wide database of customers.

The company leases two stores, both in lucrative locations in the capital of the Czech Republic, with an area of 56 m² and 69 m². The lease in the first of the two branches is concluded for a fixed period until 2028, with contracts being concluded for a standard period of 5 years. For the second store, the current lease is valid until the end of the year with the option to extend or move the stores to a new location. That would be up to the new owner. Opening another store is certainly a valid option for further expansion.

Representation of a renowned brand is of great value, which is not exclusive, but currently it is already an official representation and the manufacturer is not interested in providing this to any other entity. The company operates under a master-franchise agreement, valid until until 2026 with the possibility of extension. In addition to its own sales channels, the company uses well-known chains in the Czech Republic and Slovakia, as well as large e-commerce players operating throughout Europe, for the sale of this manufacturer’s products.

The company has very few direct competitors in the given price range. And thanks to this, the margin on products sold in stores reaches up to 500%. The company also focuses on the operation of the e-shop, which achieves a turnover of approx. 150 thousand. CZK per month.

Part of the sale is tangible property, which includes all store equipment and stock worth approximately CZK 0.8 million. Intangible assets mainly include the official contract for the representation of a cosmetic brand in the Czech Republic and an extensive database of customers from the e-shop. In addition, software, websites of active social networks and other forms of advertising. These are advertisements in the most read women’s magazines, cooperation with portals for women, participation in various shows and much more.

Currently, the company employs 7 employees, including the owner. The owner in the company is only involved in supervising the operation of the company and solving strategic issues. The company is fully functional and autonomous, it can continue to operate even after being handed over to a new owner.