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FRANCHISING

As one of the leading restaurant franchise groups in South Africa, Wimpy is constantly looking to expand its wide network of stores. With a history of almost forty years, and more than 400 restaurants in Southern Africa, we can safely say that we have found the recipe to success.

When you become a Wimpy franchisee you have the assurance that you won’t just be left in the dark. We will hold your hand every step of the way until you are ready to take the first steps on your own.

As soon as your business is up and running we will provide business training in accounting controls, help organise stock control, and assist you in improving your business in every way possible.

However, you as a franchisee will be fully responsible for your own store from a financial point of view, and also in terms of human relations and manpower. Although you can rely on the strong Wimpy brand image to attract customers, success will eventually depend on your hard work and commitment.

So if you believe you have the entrepreneurial skills to run your own Wimpy, and become part of a winning formula, then contact us for franchise opportunities.

  1. Contact Information
  2. Financial Information
  3. Disclosure
  4. FAQ's

For franchising opportunities please download our franchise application form and contact:

Yvonne van Wyk
Tel: 011 651 5920
Fax: 011 651 5768
Yvonne.vanwyk@famousbrands.co.za
NB: It is to be noted that only application proposing owner-operated franchises will be considered.

Once you have been granted and guaranteed a franchise, we will assign a business banker to you to process your application. He/She will assist you with applying for financing and any other general enquiries you may have about the financing side.

For any financing enquiries please contact:

Kobus Snyman
ABSA
Franchise Solution Specialist
Tel: 011 350 8000
Mobile: 082 920 5469
e-mail: kobusjs@absa.co.za

Olley Accom 
National Franchise Manager
Nedbank Business Banking
Tel: 011 295 9045
Cell: 083 633 9291
e-mail:  OlleyA@Nedbank.co.za

Andre Beck
Franchise Specialist
Growth and Acquisition
FNB Commercial
Tel: 011 632 0396
Cell: 082 799 6404
e-mail: ABeck@fnb.co.za.co.za

Carol Smit
Standard Bank
National Franchising Manager
Tel: 011 721 9437
Mobile: 083 307 3253
e-mail: Carol.Smit@standardbank.co.za

Franchisees are provided with a comprehensive disclosure document detailing the franchise agreement, operating manual and other basic information. This document includes the contact details of all Wimpy outlets to encourage potential franchisees to study the market and make informed choices.

Every potential franchisee is thoroughly screened in the interests of both the Wimpy brand and the individual concerned. Franchisees need to display entrepreneurial skills, the ability to follow procedure, good personnel management skills, the ability to work in a structured environment and the capacity to handle pressure. The level of direct involvement in the running of the business, and the anticipated income, also needs to be assessed. Funding availability is also crucial as 40% of the set up costs must be available in unencumbered funds.

FRANCHISOR AGREEMENT

The disclosure document includes inter alia the following sections:

  • Franchise agreement follows a standard form which creates uniformity of operation throughout the general body of franchisees.
  • There are detailed provisions governing method of operation, food, training, layout, etc.
  • The success of the franchise and the franchisee is interdependent and control mechanisms are built in to provide for this.
  • The franchisor's interests dictate that financial controls and restraints of trade be included.
  • The use of the franchisor's trademarks are stipulated and procedures for dealing with infringements by other parties are outlined.
  • Breaches of the agreement may result in monetary penalties.
  • A proposed sale of the business is governed by detailed provisions.
  • Where the franchisee is a legal entity, controlling members must underwrite the obligations of the entity.
Detailed provisions are set out in regard to liquor licenses.

FRANCHISOR SUPPORT

  • The franchisor provides support in the following areas:
  • Training - induction, in store and follow-up.
  • Operations Manual.
  • Operations Support - franchise managers are allocated to stores according to location and assist in all key performance areas.
  • Administration - eg. stock controls, sales reports, hardware and software training.
  • Procurement - franchisees benefit from the brand's bulk purchasing power.
  • Accounts - franchisees can draw on the expertise of the central financial department.
  • Human Resources - this department keeps track of new legislation and developments in the restaurant industry and assists franchisees in this regard.
  • Marketing - this occurs extensively on a national basis.
  • Property - a dedicated department seeks appropriate sites for new development and undertakes comprehensive feasibility studies.

FINANCIAL INFORMATION

This section of the disclosure document provides details of costs. These include the initial franchise fee, establishment costs and ongoing franchise fees.

COMPANY AND BRAND ORGANISATION CHART

The disclosure document contains organograms illustrating how the various sections of Wimpy and Famous Brands Limited as a whole are structured.Thus this disclosure document contains all the information needed for a detailed investigation of the potential of a Wimpy franchise business opportunity.

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.

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