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Franchising Questions

Q. What is a Franchise Fee?

A. The franchise fee is made up of two components namely the Initial Franchise Fee also commonly known as a joining fee and secondly the ongoing franchise fee commonly known as Royalties. The Initial Franchise Fee goes toward design, plans, and 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.

Q. What is an Advertising contribution?

A. 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 Debonairs Pizza franchise system will benefit.

Q. How much is the Initial Franchise Fee for a Debonairs Pizza?

A. The franchise fee for a Standard and Shopping Mall concept Debonairs Pizza is R130, 000-00 excluding VAT.
A. The franchise fee for an Express is R81 500-00.

Q. What is the Royalty and Advertising percentage contribution of turnover for a Debonairs Pizza restaurant?

A. Royalty - 7% of monthly turnover. Advertising - 5% of monthly turnover.

Q. What would the approximate set up cost be for a Debonairs Pizza?

A. Approximate set up cost for a Standard Debonairs Pizza is R 1,720 000-00 excluding VAT. Approximate set up cost for a SMC Debonairs Pizza is R 1,600 000-00 excl. VAT. Approximate set up cost for an Express Debonairs Pizza is R 1 100 000-00 excl. VAT.

Q. How much working capital is required?

A. Between R100, 000-00 and R120, 000-00 working capital would be required - This includes basic 3 month rental deposit and other standard installation averages.

Q. How much would be required for stock?

A. Between R50, 000-00 and R60, 000-00 stock would be required.

Q. What is the approximate size of a Debonairs Pizza?

A. The approximate size of Standard Debonairs Pizza is between 100m2 and 130m2. The approximate size of a Shopping Mall Concept Debonairs Pizza is between 90m2 and 120m2 The approximate size of an Express Debonairs Pizza is between 50m2 and 70m2

Q. What type of training is given?

A. The training consists of just over three weeks training which is broken up into a two weeks practical (hands on) training course and one week theoretical (classroom) training course.

Q. What would be my return on investment?

A. Return on investment is dependent on site location and the capability to manage and run your business according to the specified Debonairs Pizza and operating procedures.

Q. How would I apply for a Debonairs pizza franchise?

A. Step 1. Down Load a Franchise Application form from the web site. Step 2. Complete the Franchise Application form and forward to Famous Brands Limited via post, fax or email.

Q. What happens after my Franchise Application is received by Famous Brands Limited?

A. The Franchise Application form is processed and should your application be successful a list of existing sites for sale will be forwarded to you should there be no new sites available.

Q. Is the Franchise Application confidential?

A. Your Franchise Application will be treated in the strictest confidence. The completion of the Franchise Application Form is a standard procedure and is in no way binding on either party, however gives us comfort in your commitment in pursuing a Debonairs Pizza Franchise.

NB. It is to be noted that only applications proposing owner-operated franchises will be considered. Unencumbered (Cash on hand) requirement is 50% of the total set-up cost.