How long has the business been established?
The business was established in 2013
How long has the owner had the business?
The Directors was the Founding members of the company.
What is the Franchise opportunity about?
The franchise offers the option in the market to enter the Laundry and Carpet cleaning business sector. You could be the proud owner of a retail store with a on-site Laundry facility.
How many existing franchisees are there in the group and for how long have they been operating?
Currently there are 12 Franchises for many years operating
In which provinces/ areas are the existing franchisees located in?
There are 7 franchises in the West Cape, 4 in Gauteng and 1 in Mpumalanga
What is the success of the current franchisees?
The current franchises is fully in operation and are doing well despite the Covid pandemic.
How does the business operate on a daily basis?
The Owner would manage his staff and assets. Giving support on-site if needed. If the daily scheduling is complete the Owner would focus on bigger corporate deals . Handling intake and collections by clients. Where delivery service is offered to check on time deliveries. Handel administrative duties which need to be done like summary reports, basic accounting and staff schedules..
How are the clients attracted to the business?
Google advertising will be done by the Franchisor as well as lead generation. The Franchisor will also be securing national deals and offering key client support. The Franchisee will be responsible for advertising within their designated area. Each franchise will create and run its own Facebook profile and page.
What Advertising/Marketing is carried out?
Included in the initial fee are a marketing fee for 3 month project including online promotions , Social media Boosts & vouchers. Optional Facebook, Flyers , ect advertising in the area of the Franchise can be done
Does the business have any contract work?
Contract work can be done for Corporate and Factories.
How did the Covid-19 pandemic impact the business turnover / daily operations?
The Covid pandemic have hit small businesses hard .Some businesses closed down since the first lockdown . There is a revival in the laundry sector with less competition and better prices as before.
What steps / actions have been taken to combat the effect of Covid-19 pandemic?
More advertising was done by Franchisees.
How are Projected turnovers and profits calculated?
The Income statement on this mandate projected figures is with growing scenarios is available to qualified buyers at the first meeting. The projection is based on actual experience from other franchisee's The reasonable profit potential is R 20 000 pm within 6months . The business has the potential to much higher levels of profitability.
What is the Franchise joining Fee?
The Franchise fee joining fee is R 56350 (Vat Incl) and is included in the initial price.
What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
The monthly franchise fee is a flat rate of R4000 pm .irrespective of the revenue generated by the Franchisee.
What extra marketing and advertising should a franchise budget for?
A amount of R1500 to R2000 is recommended to maintain visibility.
What assets are included in the purchase price?
All equipment that is needed to set up a Laundry .A detail list is available.
Is the franchisor supplying all assets or can the franchisee source these items himself?
All assets will be supplied by the Franchisor.
Is stock supplied with the initial franchise setup (if applicable?)
Hangers, Plastic Rolls for packaging and a Chemicals Starter pack are supplied at setup by the Franchisor.
Will stock purchases be solely from franchisor in the future or can the franchisee pruchase from other suppliers?
The Franchisee can choose from which recommended National supplier they want to buy there supplies.
How many staff members are required to successfully operate the franchise?
The Owner can manage the counter and related functions. There should be a minimum of 2 staff workers doing the laundry for start up . If the Laundry. volume expands you can appoint additional workers and a driver if necessary to do collections and deliveries that must be done. The appointment of a representative is also a option at a later stage.
What training is provided for new franchisees and staff members? Is there a cost associated with this?
The Initial Franchise training and Staff training will be done. All cost is included in the initial cost.
Where will training take place and for how long?
2 days initial franchise training and 1 day technical training of staff will be done.
What support and backup is offered to the franchisee?
Detailed on-line operational Manual
Does the franchise have to be owner operated?
The Franchisor would prefer to have Owner operators that are 100% committed to their Franchise.
What type of premises do a new franchisee require to operate the franchise?
A on-site laundry facility in a shopping center with lots of passing trade at a affordable rental is an attractive option.
Can the franchise be operated from home?
Not recommended If the business grow the Business Zoning will become a problem and relocating will incur extra cost . A well located Retail store is the single most important success factor..
Will the franchisor assist in identifying or acquiring premises and will assistance be provided with negotiating the lease on behalf of the franchisee?
Yes for sure will the Franchisor assist ..
How many franchises will be allocated to each Area/ Province?
The Franchisor is very flexible with no territory restrictions but security will be provided within the Franchisee immediate customer area.
What skills and background is the franchisor looking for in a prospective franchisee?
The important attributes the Franchisor will look for are: Entrepreneurial by nature Is self 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 the Franchisees are required to register as a Vat vendor and all statutory legislation to companies, tax and safety need to be compiled to.
A proven turnkey system to gain a rapid foothold in their territory. Comprehensive backed software and CRM system to control the whole process through Collection, Deliveries and Invoicing..
The Brand is growing and will take a while to achieve national recognition
One of the big attractions of the business is that it can grow substantially, adding of-site carpet cleaning and fabric protection. Multiple retail laundry stores can be added over time .
Weak franchisee's not following the Franchisor's specifications on how to run a business and lack of local marketing. Covid with hard lockdown.
What is the full purchase price of the franchise (incl VAT)?
The Initial set up cost for a small Laundry setup is R193000. (Total R221950 Vat incl) Extra 10% contingency for establishment : Electrical, Plumbing, Shop fitting and signage R19300 Additional Office equipment, furniture and software R10000 Rental deposit Two months R26400 Delivery cost of equipment depending on distance R 3000 Total R251700 (excl VAT) A final quotation will be given where the premises needs more renovations.
What is included in the purchase price and breakdown of various costs?
Detailed listing is available that includes the initial Brand fee , all the equipment like washing machines , sorting tables ,the carpet cleaner ,shop counter, selves, plumbing , electrical ,window signage, ect
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?
Banks will look at financing the equipment for an on-site laundry facility based the the applicants credit record.
How many months working capital will the franchisee require?
It is recommended that working capital for 6 months be available.
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 at least 6 months working capital.
Annual Turnover Amount between R 500 thousand and R 6 million