Whats is a Franchising Fee?
The franchisee fee is made up of two components namely the Initial Franchise Fee also commonly known as the joining fee and secondly the ongoing franchise fee commonly known as Royalties. The Initial Franchise Fee goes towards design, plans, drawing up of legal documentation, project management, training, menus and various other items. The ongoing franchise fee (Royalties) is a monthly percentage of turnover contribution which enables the franchisor to give ongoing service in respect of Franchisee Support.
What is an advertising contribution?
The advertising contribution is a monthly percentage of turnover contribution which goes to a marketing fund. The marketing Fund uses the funds towards National advertising and other activities to which the whole Wimpy franchise system benefit.
How much is the initial franchise fee for a standard Wimpy?
The franchisee fee for a Standard WIMPY is R114 300-00 excluding VAT..
How much is the initial franchise fee for a seatless Wimpy?
The franchisee fee for a Seatless WIMPY is R55 500-00 excluding VAT.
What is the royalty and advertising precentage contribution of turnover for a Wimpy?
Royalty - 7% of net monthly turnover
Advertising - 5% of net monthly turnover
What would the approximate setup up cost be for a standard Wimpy?
Approximate set up cost for a standard WIMPY is R1 931 088-14 excluding VAT. Set up cost includes equipment, shop fitting, wet works, furniture and fixtures.
What are the approximate set-up costs for a Wimpy?
Standard Wimpy - Between R1 900 000.00 and R2 500 000.00 excluding joining fee, contingency and VAT.
Seatless Wimpy - Approximately R650 000.00 excluding joining fee, contingency and VAT .
How much unencumbered cash is required and how much can be financed?
50% of the total cost is required as unencumbered cash and the balance can be financed through a financial institution
Does Wimpy offer finance?
Wimpy does not offer finance nor does it have in-house finance available however reputable financial institutions can be recommended.
How much work capital is required?
Between R100 000.00 and R150 000.00 working capital is required for landlord deposits, electricity deposits etc. Approximately R35 000.00 to R55 000.00 is required for opening stock
What is the approximate size of a standard Wimpy?
A standard Wimpy rages from 200m² - 350m² in size
What is the approximate size of a seatless Wimpy?
A seatless Wimpy rages from 45m² - 65m² in size.
What type of training is given?
The training consists of just over three weeks training which comprises two weeks practical training (hands on) and one week theoretical (classroom) training.
What would be my return on investment?
Return on investment is dependant on site location, gearing, lease agreement and your capability of running your business in accordance with the specified Wimpy standards and operating procedures.
How would I apply for a Wimpy Franchise?
Step 1: Access theFranchise application from the web site.
Step 2: Complete the form and submit it.
Is the franchise application confidencial?
Your application will be treated in the strictest confidence. The completion of the form is a standard procedure and is in no way binding on either party, however it gives us comfort in your commitment in pursuing a Wimpy Franchise.
How are new sites for potencial Wimpy franchises sourced, assessed and allocated?
Developers, Property Brokers and Letting Agents:
• Constant contact is maintained with developers, property brokers and letting agents and negotiations are initiated at times years before construction starts. This is the case with most new shopping centre developments.
Assessing new sites:
• All new sites that become available are assessed on their own individual merits.
Allocating new Sites:
Where a new site could cannibalize or affect an existing Wimpy franchisees’ turnover, we have no option than to offer the site to the possible affected franchisee. This policy is seen as ethical and fair to existing investors and should you be in a similar situation you would want the same consideration. Should we consider the new site to be of strategic importance and the above-mentioned franchisee does not take up the first right of refusal we then procure an alternative franchisee either from within our system or from the franchise applications we currently have on record. Should a site be considered to have an adverse affect on other Wimpy franchises in the near vicinity we will not even consider the opening of such a site. In line with Wimpy’s black economic empowerment policy, new sites which do not impact existing franchisees’ business interests will be allocated to previously disadvantaged applicants. Wimpy’s management reserves the sole mandate in implementing any strategy related to the aforementioned policy. This process has no specific time frame and no commitments in this regard can be made. In some instances this process could happen fairly quickly and in other instances could be a long wait.
IT IS TO BE NOTED THAT ONLY APPLICANTS PROPOSING OWNER OPERATED FRANCHISES WILL BE CONSIDERED.