Fully describe the business's activities?
This unique Franchise Group started their pilot operation in August 2013 and have since then, to date have set up a total of 14 Franchises in Gauteng, Cape Town and Durban. They have a unique offering in that they have established South Africa's first door to door service to residential, commercial and industrial clientele doing Dry Cleaning and Laundry. In addition to this they also offer on-site Carpet, Upholster, Mattress Hygiene Steaming and Fabric protection by developing and partnering up with the internationally awarded Master Guard Protection. This franchise offers the most flexible options in the market to enter the Dry Cleaning, Laundry and Carpet Cleaning business - The franchisee can start off with the entry single vehicle pick-up and delivery model, then progress to adding a retail store, and then add an on-site laundry facility as your business grows facilitated though the attractive financing option with limited capital outlay which the franchisor has arranged. An important added benefit which this franchise offers is that unlike most other offerings, the franchise territories are large, providing scope to develop your own multi-branch chain over time with only a store set-up cost and no extra franchise fee required for each additional store.
How does the franchise operate on a daily basis?
The franchisee would manage his staff and assets if any on-site support is needed. If the daily schedules are complete the franchisee would focus on bigger corporate deals, including but not limited to partnering up on their CSI's, Staff retention programs and generally increase the clientele we reach. Along with this there is administrative related duties which would need to be done. (Summary reports, Basic accounting and staff schedules).
Does the Head Office assist in securing contracts (if applicable) or is it up to the individual franchisee's to do this?
The Directors have vast experience in creating high quality Leads, Google ranking and we do invest these skills as well as a significant portion of the Brand Management Fee to make sure that we rank above all our competitors on all major search engines. There is a national support manager appointed at head office to assist franchisees with training of staff, sales assistance and helping establish larger contracts They also have national contracts with some large groups such as SAGE, PROTEA, EOH and FNB to mention a few.
What advertising and marketing is undertaken on a group basis and what is the individual franchisee expected to do?
Google advertising will be undertaken by Head Office as well as lead generation. Each franchisee will also be responsible for advertising within their designated area. Head Office will also be securing national deals and offering key client support. Social media campaigns will be run from head office. Each branch will be given permission to create their own FB profile.
Franchisee's will enjoy the benefit of a unique partnership with certain laundry Groups in South Africa. A proven turnkey system to gain a rapid foothold in their territory. The support system which has been developed for the franchise network is impressive and includes ongoing Lead Generation through various channels and partners, Comprehensive backend software and a CRM system to control the whole process through Collection, Deliveries and Invoicing. The business model enables the franchisee to start small with a single vehicle and expand the business over time to a chain of retail stores and his own on site laundry facility.
Brand is still relatively new, and although the footprint has now increased to 14 branches, it will still take a while to achieve national recognition
One of the big attractions of the business model is that in addition to the recurring revenue of the Dry Cleaning business, it is possible to generate multiple income streams with the carpet cleaning AND fabric protection. Franchisees can develop national or regional contracts and enjoy recurring revenue even outside their territories. Multiple retail stores can be added over time and the establishment of an on-site laundry facility using the finance options available to reduce capital outlay gives the opportunity to drive laundry costs down to very competitive levels
Weak franchisee's not following the companies specifications on how to run the business and lack of local marketing.
How are Projected turnovers and profits calculated?
The income statement on this mandate projected figures for a single vehicle scenario within 10-month period. A detailed breakdown depicting a number of possible growth scenarios is available to qualified buyers at the initial meeting. There is also a option for a on premises laundry (OPL)
What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
The Brand Management Fee is R2800 Ex Vat and is used for marketing and marketing programmes. An audited account is provided on an annual basis as required by the consumer protection act. The franchisor does not recover any margin based on turnover but charges a flat management fee which is scaled up from start up reaching a maximum amount after 10 months. The cost structure is explained in detail at the initial meeting
What assets are included in the purchase price?
We supply an initial marketing pack to both modules but we cover all shop fittings for the store module. Not included in the store module would be the Deposits, Rental and any Signage as each landlord would have different specifications. Also included in the initial fee is a Karcher steam cleaning machine and an industrial carpet cleaning machine.
How many staff members are required to successfully operate the franchise?
Along with the Owner their should be a Sales person, Driver, Admin person and a Shop assistant for that module.
Where will training take place and for how long?
Training will take place at our head office and will be done in 3 days.
What support and backup is offered to the franchisee?
Full backup and support is continously on offer to all franchisees. A national support manager based at head office is available to support franchisees on a daily basis
Does the franchise have to be owner operated?
The franchisor would prefer to have owner operators that are 100% committed to their franchise.
Can the franchise be operated from home?
It can but we recommend all new franchisee's open a retail premises within 12 months of opening. It adds value and is a whole separate business module. Thus increasing revenue. The establishment of an on-site laundry facility is a very attractive option
What skills and background is the franchisor looking for in a prospective franchisee?
There are many attributes that the franchisor is looking for, the most important ones are :- Entrepreneurial by nature Is driven and has a desire to succeed To be fully committed to the franchise Have the necessary funds as well as 6 months working capital.
Is there any industry regulations or licenses needed to operate the franchise?
No but Franchisees are required to register as a VAT vendor and all statutory legislation related to companies, tax and safety need to be complied with.
What is the full purchase price of the franchise (incl VAT)?
The basic single vehicle module is R169860 including VAT and the store module is R323760 including VAT. A full breakdown of the options and what is included is explained in full at the initial meeting.
What is included in the purchase price and breakdown of various costs?
Included in each module are the following : - Vehicle Branding Contribution R2500 - Tear Drop Flags R2000 - Pull Up banner R1700 - Marketing Brochures, Flyers R1000 - Business cards R 500 - Initial Packaging and Tags R1000 - Digital Scale R 300 - Clothing Allowance R3000 - Karcher Steam Cleaner R7500 - Semca Industrial carpet cleaner R15000 And in our store module all fixed shop fitting for an average sized store no more than 50 Sqms. ( Detailed breakdown provided at the initial meeting. )
Does the franchisor offer finance?
No Finance option is available for the purchase of the Franchise, however a very attractive finance option is available for acquiring the equipment for an on-site laundry facility.
When will a franchisee be able to start drawing profits from the franchise?
Within 3 to 4 months from the start of your franchise.
How much unencumbered cash is needed from prospective franchisee?
Ideally to have the full purchase price as well as least 6 months working capital.
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