Fully describe the business's activities?
PIRTEK has been ranked 64th in a list of the worldâs top 200 Global franchise systems by influential American publication, Entrepreneur Magazine. They offer a comprehensive range of fluid transfer solutions, products and services to various industries which includes; mining, manufacturing, agriculture, transport and logistics, marine and environmental services. They currently have 400 successful service centers in 22 countries with 20 in South Africa. Pirtek has earned an outstanding reputation by providing high quality product and outstanding service to their customers.
How is income derived?
Income is mostly generated from supplying customers with the following services: - Hose and fitting kits; - Hose testing and certification; - Hose cleaning; - Environmental product management; - Supply and instalation of greasing and lubrication systems - Service consumption reporting. Those services are all offered on site and are available to customers 24/7. This is a great advantage for customers searching quality products in rapid response times.
How does the franchise operate on a daily basis?
The mobile service is a major attraction for potential customers. This is a fully equipped vehicle to provide 24/7 assistance and support anywhere needed. The main business is their mobile service, and assisting customers at their location.
Does the Head Office assist in securing contracts. (if applicable) Or is it up to the individual franchisees to do this?
Pirtek assists Franchises with securing National contracts. Otherwise it is up to the individual franchise to source and secure business. This task is made easier for the franchisee as Pirtek has secured worldwide agreements and approvals from existing OEM's.
What advertising and marketing is undertaken on a group basis and what is the individual franchisees expected to do?
The Franchisor will assist Franchisee with access to their marketing programmes. This program includes any advertising, sales promotions, corporate sponsorship, public relations and any special events that you would like to do. You will be assisted by Head Office with these projects.
- This is a global company only sourcing the highest quality products from international brands. - The franchise system is specifically designed to provide consistency and centralised support. - BBBEEE requirements are addressed at each franchise level for each operation. - Internationally recognised company. - Hands on Head Office that is of great assistance to Franchisees. - Strong brand equity within the industry.
Business is in general based on the state of the economy in particular in the industrial and manufacturing sectors.
- Pirtek assists Franchisees in maximising market opportunities with constant growth and technology development. - Agreements with approved OEM's
None identified in this is a globally recognised group.
How are Projected turnovers and profits calculated?
This will be discussed in detail with the Franchisor. However, the income and expense projections have been compiled based on actual experience of other Pirtek franchises nationally. (Please note that we have received 3 years projected figure for your perusal and can be sent on to you)
What is the Franchise joining Fee?
The Franchise fee is incorporated in the purchase price: Paarl is available as a Regional Franchise: Purchase Price: From R 1 200 000 The establishment of a franchise will include an investment in inventory, plant an equipment that you will need to efficiently assist your customers.
What extra marketing and advertising should a franchise budget for?
Private marketing and advertising is at your own discretion and you can advertise your franchise in the area you operate. However, the national marketing that has been done by the franchisor often makes it unnecessary for individuals to advertise as their marketing campaign is extremely successful in creating brand awareness for the right customer.
What is the monthly royalty, mamagement and marketing fee? Are these fees based on turnover or a flat rate?
The franchisor has a monthly franchise fee set on 2% of your monthly turnover figure. All franchises will contribute 2% of their monthly turnover towards marketing and advertising. This will help fund National advertising and contribute towards the overall brand awareness.
What assets are included in the purchase price?
This will depend on which type of Franchise structure you purchase. Metro Franchise: This will include a workshop, shop-front and 2 fully equipped mobile vehicles. Regional Franchise: This can be with a small workshop and vehicles. This will be discussed in more detail.
Is the franchisor supplying all assets or can the franchisee source these items himself?
The Franchisor will assist the new franchisee with the equipment they need to maximise all their opportunities. They have established acquisition relationships with suppliers for the vehicles and equipment you will need. The Franchisor will also assist new franchisees with the planning, design and development of new workshops. The setup will be on a TURN-KEY basis.
Will stock purchases be solely from franchisor in the future or can the franchisee purchase from other suppliers?
The Franchisor sources products for their franchises from a network of global suppliers. They have already done the groundwork to research specifically designed products for the industry you work in.
Is stock supplied with the initial franchise setup (if applicable)
What training is provided for new franchisees and staff members? Is there a cost associated with this?
When purchasing the Franchise the Franchisor will provide comprehensive sales and technical training for you and your staff members. There will also be regular training scheduled for new staff or current staff members wishing to expand their knowledge with the changes in the market and new developments and technology.
Where will training take place and for how long?
Head Office will provide comprehensive training for the franchisee and employees. The duration of the training will be approximately 6 weeks at Head Office and selected branches.
What support and backup is offerred to the franchisee?
The Franchisor will be able to assist all the their franchises with help regarding the following: - Technical Support - Operational Support - Inventory Management - Business Management Tools - Sales Management Resources
How many staff members are required to succesfully operate the franchise?
Metro Franchise: 5 - 6 Employees will be required to operate successfully. Regional Franchise: 3 - 4 Employees will be required to operate successfully.
Does the franchise have to be owner operated.
Can the franchise be operated from home?
Yes this is possible when a franchisee only purchase a mobile workshop for onsite assistance. When you have a Metro franchise this option will not be possible.
Will upgrades to the premises be required and if so how often will this occur?
Only as part of normal business practice as the franchise develop.
Will the franchisor assist in identifying or aquiring premises and will assistence be provided with negotiating the lease on behalf of the franchisee?
Yes, the Franchisor will assist the new Franchisee with planning the location of the workshop and also the design and the development of the Franchise.
How many franchises will be allocated to each province / area?
Pirtek has provided us with a list of new Franchises they want to establish nationally. However new Franchisees in a specific area will be granted certainty that no other Pirtek franchise will be opened in that area.
What premises are required to operate the franchise?
This franchises can either be a Metro Franchise which consist of a shop-front, workshop and at least 2 mobile workshops. A franchisee can also only purchase a Regional Franchise which will only be a vehicle to provide on-site assistance to customers.
What skills and background is the franchisor looking for in a prospective franchisee?
Technical and engineering background is preferred but not compulsory. Skills that will be of a great advantage are business management and marketing . Technical work is done by trained staff member with great knowledge of the work.
Is there any industry regulations or licences needed to operate the franchise?
The Franchisor has specific certification that covers the core elements of operations including hose assembly, supply and installation, testing, purchasing and warehousing.
What is the full purchase price of the franchise (incl VAT)?
Paarl, Worcester is available as a regional franchise: Purchase price From R1 200 000
Does the franchisor offer finance?
Do any of the Bank or Financial service providers recognises this franchise and will they offer any form of finance?
When will a franchisee be able to start drawing profits from the franchise?
This will vary but you are likely to be cash positive within 6 months.
How much unencumbered cash is needed from prospective franchisees?
How many months working capital will the franchise require?
3 - 6 months.
What is included in the purchase and a breakdown of various costs.
This will be a full turn-key setup.
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