| Frequently Asked Questions |
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| What is a Franchise Fee? |
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. |
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| What fees do I have to pay? |
You will need to pay a franchise fee which is made up of two components. The Initial Franchise Fee (or joining fee) which covers design, plans and legal documentation as well as project management, training, menus, etc.
The second component, the "ongoing" franchise fee (also called the Royalty Contribution) is calculated as a monthly percentage of your turnover. This contribution enables Steers to provide ongoing franchise support to your franchise.
You will also have to pay an ongoing Advertising Contribution, calculated as a monthly percentage of your turnover. This is held in a marketing fund which covers National advertising and other activities for the entire Steers Franchise Network. |
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What is an Advertising contribution?
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| 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 Steers franchise system will benefit. |
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| What is the Royalty and Advertising percentage contribution of turnover for a Standard and Drive-thru and Kiosk Steers restaurant?
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Royalty - 5% of monthly turnover.
Advertising – 5% of monthly turnover. |
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How much is the Initial Franchise Fee for a STANDARD AND DRIVE-THRU STEERS?
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| The franchise fee for a Standard Steers is R104 000-00 excluding VAT, and R111500.00 for a Drive Thru. This includes the provision of equipment, shop-fitting, wet works, furniture and fixtures. |
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| How much working capital is required? |
| You will need between R30 000, 00 and R50 000, 00 in working capital. |
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| How much would be required for stock? |
| You will need between R30 000, 00 and R50 000, 00 for stock. |
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What would the approximate set up cost be for a Standard Steers?
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| Approximate set up cost for a Standard Steers is R1 545 105-98 VAT. Set up cost includes equipment, shopfitting, wet works, furniture and fixtures. |
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What would the approximate set up cost be for a Kiosk Steers?
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| Approximate set up cost for a Standard Steers is R808 955-57 VAT. Set up cost includes equipment, shopfitting, wet works, furniture and fixtures. |
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| What would the approximate set up cost be for a Drive-Thru Steers? |
| Approximate set up cost for a Drive-Thru Steers is R2 450 180-21 excluding VAT. Set up cost includes equipment, shopfitting, wet works, furniture and fixtures. |
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What is the approximate size of a Standard Steers?
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| A Standard Steers measures between 120m2 and 150m2. |
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What is the approximate size of a Drive-Thru Steers?
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| A Steers Drive-Thru Steers measures between 180m2 and 220m2. |
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What is the approximate size of a Kiosk Steers?
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| The approximate size of a Drive-Thru Steers is between 50m2 and 60m2. |
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What type of training is given?
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| The training consists of 2 weeks for the Core Franchisee and management team, and a further 2 weeks for the rest of the staff as well as the Core team. |
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| What would be my return on investment? |
| Return on investment is dependant on site location and the capability to manage and run your business according to the specified Steers standards and operating procedures. |
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How would I apply for a Steers franchise?
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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 e-mail. |
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What happens after my Franchise Application is received by Famous Brands Limited?
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| 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. |
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Is the Franchise Application confidential?
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| 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 Steers Franchise. |
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| NB. It is to be noted that only applications proposing owner-operated franchises will be considered |
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