The price of a Standard Franchise is R1,600,000 (excl. VAT). The franchise will provide the franchisee with the equipment and the facilities to service most makes of vehicles, and to repair and replace exhaust systems. It will allow the franchisee to sell the full range of additional products, excluding tyres.
The initial Franchise Fee (Up-front Fee) required is R250,000 (excl. VAT). This payment secures the franchise and the trading area. The monies are also utilised towards the planning and setting up of the workshop by the franchisor.
A fixed Management Service Fee (Royalty Fee) of R7,500 (excl. VAT), linked to CPIX, is payable on or before the 7th of each month for the preceding month. MSF’s are payable for the franchisor’s continued support, advice and assistance, and are appropriated towards the cost of the operation of a franchise head office established to meet the franchisor’s obligations in terms of the Franchise Agreement.
A monthly Advertising Contribution of R2,500 (excl. VAT), linked to CPIX, is payable to a national advertising fund to establish and build the Noise Boys brand through various media.
The cost of the initial training is R50,000 (excl. VAT), included in the total establishment costs. Travel and accommodation expenses will be borne by the franchisee.
Stock in the amount of R50,000 (excl. VAT), is provided as part of the establishment costs. Since the exhaust systems are built and fitted on site, franchisees need not invest huge amounts of money in stock.
An additional amount of R150,000 (excl. VAT) is required for operating capital.
Should the franchisee elect to add tyre fitment to its operation, the cost of the franchise shall increase by R695,000 (excl. VAT).