Here’s How Much It Costs To Open A Spur Franchise In South Africa
When one seeks to open a Spur franchise, they have to have a willing to learn attitude, because the company has already established their brand and business model. Franchisees are expected to adapt to the company’s way of conducting business. For example brand activations and marketing are mostly handled by Spur and each franchisee should also be willing to participate in theses activations as well as other marketing strategies.
It is estimated that for Spur’s Ideal store size of 375 to 400m2 the establishment costs would be between R3 480 000 – R5 500 000. Spur Corporation operates predominantly as a franchise operation, with each individual outlet owned and operated by independent franchisees. This model encourages entrepreneurship and business success. The company will also require franchisees to pay an upfront fee of R175 000, with the recommended working capital of R120 000. Since Spur will be handling most of the franchise’s advertising, marketing and management, it will also require franchisees to pay a 4% marketing fee as well as a 5% management fee.
The company also promises franchisees that it will provide a full range of ongoing head office support systems such as operations, marketing, procurement support, business intelligence, information technology, accounting and administration. Part of the deal of buying Spur’s franchise includes having operation management teams visiting each restaurant at least once a month to perform inspections and assess the restaurant operations against predetermined standards. This covers everything from food safety, operational efficiencies and sustainability reporting to regulatory compliance. The development team manages the new franchisee process, from franchisee and site selection to store opening, hence the management fee is also applicable in the deal.
Spur aims to improve customer satisfaction and to increase sales and profitability through creative brand management and innovative product development, operational efficiencies, market research, advertising, sales promotions and public relations – all of which are at franchisees’ disposal. Initial conceptualising, design implementation and regular, in-store promotions and sponsorships as well as the co-ordination of various sporting and community-orientated events all take place in a coordinated manner through the company.
Part of buying a Spur franchise also includes its franchisee training programme offers a variety of modules across all areas of operations, while the induction and training programmes ensure every franchisee is trained to the highest standards, making day-to-day operation of stores as easy as possible.
By Thomas Chiothamisi
