- Average set-up cost – R 300 000 – R 550 000
- Initial Working Capital R 100 000 – R 200 000
- Minimum owners’ contribution – 50%
- of Outlets – 33
- Available Opportunities – 10
- Management services fee – 5% – 7%
- Marketing fee – Up to 2%
- Initial agreement term – 5-10 Years
Full Answer
What are the different types of Spar?
What does the name Spar stand for?
What is the cheapest franchise in Spar?
What do franchisees need to purchase?
What are the big five supermarkets in South Africa?
How many Pick and Pay stores are there?
How much does a retailer pay for guild fees?
See 4 more
About this website
How much is Shoprite franchise in South Africa?
It's currently not possible to buy a Shoprite or Checker's store in South Africa, but you can purchase an OK Foods, which is also a subsidiary of the Shoprite Group. An OK Grocer franchise is currently going for R2. 85 million, Wasserman explains.
How much is it to start a Shoprite franchise?
The franchise fee for most franchises ranges from $15,000 to $40,000. A cooperative does not have these fees. With a franchise, 1% to 3% of its gross earnings, they must pay the franchisor a royalty fee of 4% to 7% of gross earnings. Members of a cooperative can retain more profit because they do not have these fees.
Can an individual own Shoprite?
General Public Ownership The general public, who are usually individual investors, hold a 26% stake in Shoprite Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
How much money do I need to open a grocery store in South Africa?
In 2019 the average cost of these stores was between R10 million and R12 million, but there are now existing stores that start at R8 million. Franchisees require a working capital of R900,000. The biggest, and most expensive, is SuperSpar. These high-end stores must be at least 2,500 square metres in size.
How much does spar franchise cost?
Start-up-costs for buying an exisiting store (40% unencumbered ) : KWIKSPAR from R5 million. SPAR from R8 million. SUPERSPAR from R10 million.
How much is a Checkers franchise?
Facts & FiguresLiquid capital required$250,000Net worth required$750,000Investment$724,523 - $2,009,400Franchise fee$30,000Royalty4.0%4 more rows
Is Shoprite a good investment?
Investors who purchase Shoprite shares will most likely see good long-term returns on investment.
How do I buy Shoprite shares in South Africa?
How to buy shares in ShopriteCompare share trading platforms. Use our comparison table to help you find a platform that fits you.Open your brokerage account. Complete an application with your details.Confirm your payment details. ... Research the stock. ... Purchase now or later. ... Check in on your investment.
How much money do I need to open a grocery store?
Initial inventory can be a massive investment, sitting around $160,000. Pre-opening expenses, including rent and insurance, can add another $10,000. These expenses, when combined with grand opening advertising, security deposits, and working capital, can easily surpass $500,000.
How much does a Vodacom franchise cost?
At a cost of about R 26,000 (US$3,450),1 prospective owners can start a franchise to operate five cellular lines in a pre-approved location.
How much profit does a supermarket make in South Africa?
As a general rule, grocery stores operate on a profit margin as low as 1-3%.
Is a supermarket profitable in South Africa?
Even taking only the South African stores (2,033), it is the largest retailer. Spar's South African stores account for the biggest portion of the group profit (R2....Number of stores and average turnover / profit per store.SupermarketNumber of storesAverage profit per storeShoprite1 519R4.79 million4 more rows•Jun 14, 2017
Which franchise makes the most money?
What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.
How can I get my business on Shoprite?
You use the online Shoprite Supplier Portal to receive orders. You will only receive a supplier number to register on the Business to Business (B2B) Supplier Portal if your supplier application is approved. The relevant buyer will be in touch. Your product packaging meets the requirements of local authorities.
How much is a KFC franchise?
For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.
How much is Mcdonalds franchise fee?
McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.
Pick 'n Pay Franchise for Sale | Buy a Franchise
Pick n Pay started as a family-run business, but has since grown to include 1,795 stores, of which 719 are franchises covering their supermarkets, express, clothing and liquor stores.
This is how much it costs to open a Tops or Liquor City
South Africans drink a lot of liquor - as much as 9 litres of pure alcohol per year, according to the World Health Organisation.. Given that the majority of alcohol consumed in South Africa is in the form of beer and wine, this makes for significant annual consumption.
Servicing customers across all income levels with recognised community-based formats
The OK Franchise Division franchises different retail formats (OK Foods, OK MiniMark, OK Express and Sentra), a liquor outlet, OK Liquor and a wholesale outlet, Megasave. Each store has its own identity and offers products and services suitable to its market.
Brand Overview
Several supermarkets acquired by the Group between 1995 and 2011 were integrated in the OK Franchise Division. These acquisitions include Sentra, acquired in 1995; OK Bazaars acquired in 1997; and Metcash, acquired in 2011.
Want to Become a Franchisee?
As the owner of an OK Franchise, you will become part of the largest retail group in Africa. The brand is already partnered with thousands of trusted suppliers nationwide and has a loyal client base across South Africa and various African countries.
What is the role of franchisor planning?
The franchisor’s operational planning department assists franchisees by researching new store locations, designing the store formats and preparing budget and financial projections for each site.
What is franchising in marketing?
The franchisor engages in a variety of marketing activities, including digital marketing, national promotions and individual store campaigns.
What is Taste Holdings?
Taste holdings provides assistance to prospective franchisees by preparing finance applications, identifying suitable sites, as well as initial and ongoing training and support.
How much of Sorbet should be available in cash?
Sorbet says that the exact amount of your investment will depend entirely on the size and condition of your selected store and varies from site to site. 50% of this amount should be available in unencumbered cash as a deposit (funding can be obtained for the balance).
What is H2O International SA?
H2O International SA has over 20 years experience in providing South Africans with water and air purification systems.
What happens if BusinessTech is attacked?
Attacks on BusinessTech, its journalists or other users will result in a ban.
What is total cost?
The total cost makes provision for store design, staff training, and launch promotion materials during opening and support from head office from day of opening.
What are the different types of Spar?
There are three categories of SPAR that prospective owners can purchase - KWIKSPAR, SPAR and SUPERSPAR. Also read: Here’s how much it costs to open a Vida, Mugg & Bean or Bootlegger coffee shop. KWIKSPAR is the smallest and most affordable of these businesses.
What does the name Spar stand for?
The name was initially an acronym, which translates to “All will benefit from united co-operation.”. They later dropped the DE and named it SPAR - a brand which has been synonymous with South African supermarkets since the 1960s.
What is the cheapest franchise in Spar?
The cheapest franchise option in the SPAR stable is their TOPS liquor store. These cost approximately R1 million to establish, but aren’t awarded as a separate entity, however. According to franchise documents, they’re only granted once one of the above supermarket applications is approved.
What do franchisees need to purchase?
Franchisees must also purchase a comprehensive operation manual that details all aspects of running the business.
What are the big five supermarkets in South Africa?
Taking on the country’s big five supermarkets as an independent retailer would be a brave decision - Woolworths, Pick n Pay, Spar, Checkers and Shoprite hold the lion’s share of the market in South Africa.
How many Pick and Pay stores are there?
Of the 552 supermarkets under the Pick n Pay umbrella, 304 are franchises. The floor space of these stores is large - they are, on average, 3000 square metres in size. This increases the complexity of running the business, and pushes up the initial purchase price.
How much does a retailer pay for guild fees?
On top of the above, retailers pay a guild fee of 1% of average monthly turnover. The holding company uses this for advertising such as leaflets, press, and television commercials.
Small-format stores serving customers in the lower-income market, mostly in non-urban areas
Usave is a no-frills brand with a limited range of basic goods at stripped-to-the-bone prices. These small-format stores cater for lower-income markets, offering unrivalled value for money and serve as the ideal vehicle for the Group’s growth in Africa.
Usave Mobile Truck
True to the Group’s innovative spirit and in direct respopnse to the COVID-19 pandemic, Usave pioneered a mobile truck shop to reach underserved communities with essential groceries.
What is the difference between retail and franchise?
Under a franchise structure, there is limited room to operate the business to your preference.
What is franchising opportunity?
It gives an investor, or franchisee, the opportunity to operate a business under a franchisor’s trade name.
When was Wakefern Food Corporation founded?
The Wakefern Food Corporation was created in 1946 .
Who owns Shoprite?
Currently, Shoprite is individually owned by members of the Wakefern Food Corporation.
Where do franchises post signs?
Franchise businesses usually post signs in their stores or notes on their marketing materials.
Which franchise is the best to own?
It’s hard to pick, but Dunkin’s and McDonald’s are part of the best franchises to own.
Motolek
Motolek, owned by the Midas brand, is a chain of roughly 60 auto electrical workshop franchises that operate throughout the country. Motolek franchises offer a range of electrical services for passenger vehicles, trucks, boats, and earth moving equipment.
Business Doctors
Business Doctors is a small business owner coaching franchise. They help coach small businesses to develop strategic plans, achieve organisational efficiency, and improve supply chain management, among others.
Abacus Maths
Abacus Maths, which uses a Japanese abacus to teach young children the basics of maths, is one of the cheaper franchises available in South Africa. The company is looking for franchisees who are passionate about education and patient with children.
MiniChess
MiniChess is a business that teaches chess to children between the ages of five and nine. The company provides structured lessons with detailed plans and project books, and they're looking for franchisees to run branches.
Battery Centre
Battery Centre is a business started in South Africa in 1969 that sells and fits car vehicle batteries. It now has an extensive national footprint of 120 branches driven by franchisees. It's also a franchise that has a relatively low total investment amount for a physical store.
Tutor Doctor
Tutor Doctor is an in-person and online tutoring franchise with an international footprint. The business started offering franchises in South Africa in 2017 and currently has seven local franchisees on board. They give new franchisees 80 hours of online training and seven days in a home office before opening the business.
Dream Nails
Dream Nails has been around for more than 35 years, and the full-service nail and beauty salon is still looking for new franchisees to join its network. They are primarily looking for people passionate about nails, wellness, and beauty to join their team - and they offer one of the cheaper beauty franchises currently on the local market.
What are the different types of Spar?
There are three categories of SPAR that prospective owners can purchase - KWIKSPAR, SPAR and SUPERSPAR. Also read: Here’s how much it costs to open a Vida, Mugg & Bean or Bootlegger coffee shop. KWIKSPAR is the smallest and most affordable of these businesses.
What does the name Spar stand for?
The name was initially an acronym, which translates to “All will benefit from united co-operation.”. They later dropped the DE and named it SPAR - a brand which has been synonymous with South African supermarkets since the 1960s.
What is the cheapest franchise in Spar?
The cheapest franchise option in the SPAR stable is their TOPS liquor store. These cost approximately R1 million to establish, but aren’t awarded as a separate entity, however. According to franchise documents, they’re only granted once one of the above supermarket applications is approved.
What do franchisees need to purchase?
Franchisees must also purchase a comprehensive operation manual that details all aspects of running the business.
What are the big five supermarkets in South Africa?
Taking on the country’s big five supermarkets as an independent retailer would be a brave decision - Woolworths, Pick n Pay, Spar, Checkers and Shoprite hold the lion’s share of the market in South Africa.
How many Pick and Pay stores are there?
Of the 552 supermarkets under the Pick n Pay umbrella, 304 are franchises. The floor space of these stores is large - they are, on average, 3000 square metres in size. This increases the complexity of running the business, and pushes up the initial purchase price.
How much does a retailer pay for guild fees?
On top of the above, retailers pay a guild fee of 1% of average monthly turnover. The holding company uses this for advertising such as leaflets, press, and television commercials.