Here’s How Much It Costs To Open A Mochachos Franchise In South Africa
Here’s How Much It Costs To Open A Mochachos Franchise In South Africa. Mochachos opened its first store in 1994 in Pretoria. This store was one of the first outlets in South Africa to offer Mexican Dishes. With its unique offering to the public, investing in a Mochachos franchise can be very lucrative for the franchisee as they are offering food that is unique to its stores and food that local people might be willing to try out as it is foreign.
The initial fee that is required by the company is R 199 000. This is a once off joining fee which varies according to territories in which the store opens. This fee is Non Refundable and is used for the design, plans, and drawing up of legal documentation, project management, training, menus and various other items. The set-up cost of the establishment can be from R 1 900 000 and it varies on the size and the condition of the premises. The company also requires franchisees to have at least 50% unencumbered funds and the balance may be applied for from various banking institutions. It also has a royalty fee of 8% of the store’s gross sales and a monthly advertising fee of 2% on the store’s gross sales.
When people want to be considered for the franchise they have to complete the online application or alternatively contact one of the company’s sales representatives. Once it has processed their application they will be required to attend an interview with the franchisee selection committee. Mochachos is also extremely selective with its site selection and sites will need to be approved by the franchisor. The Franchisor will visit the proposed site and a feasibility study will be conducted. The Mochachos franchise agreement runs for a period of ten years and runs concurrently with the lease agreement. Also, franchisees typically have an option to renew for an additional aggregated period of ten years, subject to their fulfilment of certain renewal conditions as per their franchise agreement and the conclusion of a further term of lease. Mochachos does not charge any additional franchise fee for the renewal term.
When one wants to venture into this type of business they have to understand that the business is a most demanding one. It requires and responds to personal attention; therefore it is most important that the franchisee is personally involved with all facets of the business. They must be able to operate their store in accordance with the Mochachos standards of service, quality and cleanliness as this will set the example for their employees to follow.
