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  • Mandate: 34448
  • Added: 08 Feb 2021
  • AFS
  • 499

Smart Alternative for Paint, Product for Residential and Commercial Property

SA Countrywide, Mpumalanga Other Areas
Mandate 34448
Added 08 Feb 2021
R 350,000* ZAR
Stock: R 0
Assets: R 265,000
R 33,202 ZAR
Jaco du Plooy
Aldes Compact
Western Cape
Western Cape

Established and reputable franchised group in the revamping and maintenance sector offers new franchises (limited areas available, 22 franchises already sold). The basic principle is "NO MORE PAINT EVER AGAIN" making use of 9mm fired clay brick tiles.

R 350,000* ZAR
Stock: R0
Assets: R265,000
R 33,202 ZAR

Established and reputable franchised group in the revamping and maintenance sector offers new franchises (limited areas available, 22 franchises already sold). The basic principle is "NO MORE PAINT EVER AGAIN" making use of 9mm fired clay brick tiles.

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How long has the business been established?
The manufacturing business was established in 2006 and the franchised section was launched in 2015.

How long has the owner had the business?
The current franchisor launched the franchise section.

What is the Franchise opportunity about?
"NO MORE PAINT, EVER AGAIN" with maintenance free solutions and revamp options with lifetime 9mm face brick tiles. Applications include outside, inside and flooring revamping options and maintenance solutions. Brick tiles can be applied to any surface and come with a 25 year guarantee. - Supply and Installation of brick tiles. - Project management for corporate clients. - Advice and solutions on property maintenance challenges. - Project applications solutions.

How long has the Franchise group been establised for?
6 Years.

How many existing franchisees are there in the group and for how long have they been operating?
22 Franchises sold, 15 franchises currently active. Operating between 1-5 years.

In which provinces/ areas are the existing franchisees located in?
Active in Western Cape, KZN, FS, NW, Limpopo, Eastern Cape, Northern Cape, Gauteng and Mpumalanga (All 9 provinces!!)

What is the success of the current franchisees?
Some franchisees are more successful than other, like in all businesses. Weak franchisee's not following the companies specifications on how to run the business and lack of local marketing.

How does the business operate on a daily basis?
- Marketing by franchisor/ head office and individual franchisee's. - Receive enquiries. - Do quotations. - Receive acceptance of quotations and agreed deposit. - Order material needed to do job/ work and communicate with client scheduled date of work. - Do and monitor work. - Do in inspection of work done with client and sign off. - Receive outstanding amount due.

What Advertising/Marketing is carried out?
Advertising/ Marketing done by franchisor includes- - Branding on the trailer and vehicle. - Mall exhibitions. - Websites and Facebook. - Branded clothing. - Business cards & flyers. -

Does the business have any contract work?
NO. You will however conclude a franchise agreement with Head Office.

What competition exists?
There are many competitors in the market.

What are the seasonal trends?
Some franchisees will close for the Building Industry December/ January close down.

How does the franchise operate on a daily basis?
The franchisee would manage his staff and assets if any on- site support is needed. Along with this there is administrative related duties which would need to be done. (Summary reports, basic accounting and staff/ work/ job schedules).

Does the Head Office assist in securing contracts (if applicable) or is it up to the individual franchisee's to do this?
The franchisor is marketing on a continuous basis on behalf of franchisees. It is recommended to franchisees to also market/ advertise in their specific areas of operation. The franchisor has vast experience in creating high quality leads and Google ranking.

What advertising and marketing is undertaken on a group basis and what is the individual franchisee expected to do?
Google and Facebook will be undertaken by Head Office as well as lead generating. Each franchisee will also be responsible for advertising within their designated area. Social media campaigns will be run from head office. Each franchise will also have their own webpage.

How did the Covid-19 pandemic impact the business turnover / daily operations?
During 2020 the Government's State of Disaster plan had a massive impact on the industry as a whole. Currently our franchises are however inundated with enquiries. We expect this trend to continue through 2021 and 2022. The franchisor is actively marketing and seeking new franchisees in order to keep up and service the demand of our services.

Is the business VAT Registered?
All franchisees must register for VAT if their yearly turnover exceeds R1m per annum.

Are there up-to-date Management Accounts available?
It is recommended to keep up-to-date Management Accounts by each franchisee.

What percentage of the business is cash/credit?
The basic principle is a 50% deposit on acceptance of the quotation and balance on completion of the work. It is not recommended to do work on credit.

How could the profitability of the business be improved?
A structured marketing plan for the first 6 to 12 months. To keep business expenses as low as possible.

Is Seller finance available and for what amount?
NO, seller finance is available.

What is the total staff complement?
One of our priorities is that we are on site to give the client assurance of excellent workmanship establishing a trust relationship with the client whether for interior or exterior applications. We suggest that when employing a site manager that they have good interpersonal skills and are fluent in both Afrikaans and English. Should you employ a driver an EB licence code and basic communication skills with clients are requirements. As a self operated franchise doing the work yourself there are no staff requirements. The site staff is generally contractors that has been trained and understand our requirements, they are not on the payroll however get paid per square meter. Being part of the franchise family we will assist with all staff training and or assessments to ensure that our standards and brand remains to grow strong.

How involved is the Owner in running the business?
It is recommended that the owner is 100% involved in running the business.

What is the square meters of the business?
All you need is a safe place to store the trailer. We strongly advise to work from home in the beginning, to keep your expenses low and profits high.

Do you require a licence?
No special licence is required.

What are the main assets of the business?
Apart from a trailer and tools (supplied as part of the sales/ franchise agreement) you will need the following equipment: 1)A towing vehicle with a 3 ton towing capacity (GVM). 2) A computer with internet connectivity. 3) A cell phone.

Are they presently insured?
To be insured by the franchisee.

- Brand- This franchise is well known in South Africa for quality products and prompt service. - The factory is located in Central South Africa to allow for faster delivery of product to franchisees. - Low overheads- the lower your expenses, the higher your net income. - Essential service- Properties need maintenance, regular painting and will always in most cases have rising damp problems. - Solving Rising Damp Instantly- Bricktiles is a unique product ideal for solving rising damp. - Straight forward- skills of the trade is supported through the Franchise system, you can be a pro in no time. - Support- you are never alone. Head Office will be there every step of the way to help you grow your franchise, work directly with the franchise owners.

- Many builders and contractors- can offer similar product or services. - Low barrier to entry- attracting further competition. - Limited scalability- area restriction prevent expansion. - Can become repetitive- straight forward business model. - Long hours- running on full capacity requires in excess of 8 hours per day and weekends. -

- Bad service by other provider- your superior service generates lots of work. - Service knowledge- Our service and advice comes with decades of trial and error, saving you time and money. - Painted properties- Needs a lot of maintenance, we solve it instantly. - Rising damp and maintenance- we offer solutions to both. - On site supervision- Most clients prefer onsite presence and it gives peace of mind. - Working on site generates opportunities- While most clients always ask for additional advice on building and other challenges they face, this allows for extra income to refer trustworthy contractors. -

- Weakening economy- property owners might prolong maintenance on their property due to cash flow problems/ restrictions. - Unregulated industry- allows for unscrupulous operators to compete. - Insufficient time spent on marketing & sales- (especially for the owner operated agencies) when too much time is allocated to providing the service, too little time is spent on direct marketing, sale and admin, this will result in a continued reliance on day to day clients, and not enough long term clients supporting a stable income stream.

What is the reason for the sale?
22 Franchises already sold, to expand the national foot print (limited areas available). Contact Jaco du Plooy, Aldes Compact, 0832656820, for areas/ franchises available.

Why is this a good business?
You do not need to be a pro builder or contractor to purchase a franchise. You are not alone, with over two decades of advice and proven track record you will be a pro in no time! You work on your own pace and time, you decide the money you want to make and are your own BOSS!

What is the price plus stock and the profit?
Franchise price R350,000 (recommended, + 3-6 months working capital). 50% Deposit payable (R175,000) on approval/ acceptance of franchisee by franchisor to secure franchise/ area, balance of R175,000 on delivery of assets (3% discount on once off payment, R10500). Earning potential for first year R398,419 pa (see attached income & expenditure statement).

How are Projected turnovers and profits calculated?
Based on actual experience/ info from existing franchisees.

What is the Franchise joining Fee?
No additional joining fee, once off R350,000 which include all assets and benefits. (Trailer, tools, marketing aids, sign writing and existing goodwill etc, etc).

What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
Monthly royalty of 3,5% is based on turnover. Management and marketing fees R750 pm.

What extra marketing and advertising should a franchise budget for?
Absolutely on discretion of franchisee. The more you advertise, the more jobs you could land.

What assets are included in the purchase price?
3 Ton Standard Trailer: -Double Axles: 1500kg each. -Coupler: 3000kg. -Leaf springs: 1500/ set. -Wheels 8 ply 195.14 (spare wheel included). -Finish: Galvanised. -Payload: 2000kg. The Trailer is fitted with the following tools: -Tools (All the general small tools needed for site applications). -Scaffolding 4m. -Ladder. -Cutting Machine. Business Start- up Pack. We do not only provide you with the necessary printed & electronic marketing material, the start-up pack also includes onsite training on all aspects of the business. We train you and your driver (should you choose to employ one) on the operational as well as basic maintenance aspects of the equipment; how to generate business and engage with clients, and how to manage the financial aspects of the business such as invoicing and long term contracts. We provide you with the following marketing material: -Branding on the trailer and vehicle. -10000 flyers & 500 business cards. -A dedicated web-page on the main website with your contact details. -5 Branded T- shirts; 2 Caps and 1 wind blazer. Already established goodwill as the franchise is well know and reputable.

Is the franchisor supplying all assets or can the franchisee source these items himself?
All assets supplied by franchisor.

Is stock supplied with the initial franchise setup (if applicable?)
No stock supplied with the initial franchise setup.

Will stock purchases be solely from franchisor in the future or can the franchisee pruchase from other suppliers?
All brick tile purchases will be solely from the franchisor. Other materials on owners discretion.

How many staff members are required to successfully operate the franchise?
You can start off alone as the owner.

What training is provided for new franchisees and staff members? Is there a cost associated with this?
Full comprehensive training is provided. A visit to HO and factory is compulsory for new franchisees.

Where will training take place and for how long?
Kimberley, Northern Cape.

What support and backup is offered to the franchisee?
On going day to day support and backup as and when needed.

Does the franchise have to be owner operated?
It will be recommended by franchisor but not a requirement.

What type of premises do a new franchisee require to operate the franchise?
No special premises is required but a safe storage space for the trailer is needed, ideal work from home business.

Can the franchise be operated from home?
Yes, ideal to work from home.

How many franchises will be allocated to each Area/ Province?
To be discussed with franchisor/ broker. Your franchise offers you an operating area as set out per radius per area capita. Normally a town with 250,000 population gives a lot for your franchise to grow and be established. In more dense area population an radius of 30 km will be set out and in the case of less dense area population a radius of 100km will be set out. Your area licence fee will secure you the exclusive rights as operating franchisee for your designated area.

What skills and background is the franchisor looking for in a prospective franchisee?
Some of the main benefits from purchasing a franchise is no specialised skills are required if you are a fast learner. Having previous experience in building is just an advantage to you. With the training and support we offer you will with confidence be able to give sound advice and professional service to property owners regarding their renovation requirements.

Is there any industry regulations or licenses needed to operate the franchise?
No industry regulations or licenses needed to operate the franchise.

What is the full purchase price of the franchise (incl VAT)?
R350,000 all included (3% discount on once off payment, R10500).

What is included in the purchase price and breakdown of various costs?
- Trailer and Equipment: R125,000. - Business start-up pack: R105,000. - Once-off franchise fee per area/ franchise: R120,000. - Already established goodwill.

Does the franchisor offer finance?
No finance option is available for the purchase of the franchise.

Do any of the Bank or Financial service providers recognises this franchise and will they offer any form of finance?
To be discussed with your bank but not recommended by franchisor.

How many months working capital will the franchisee require?
Working capital of 3-6 months depending on each franchisee.

When will a franchisee be able to start drawing profits from the franchise?
Predicted forecast depending on franchisee, 3 to 6 months from the start of your franchise. First year potential financial benefits for a 12 month period R398,419 (see attached Income & Expenditure forecast)

How much unencumbered cash is needed from prospective franchisee?
Ideal to have the full purchase price (R350,000) as well as least 3- 6 months working capital.

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