Here’s How Much It Costs To Open A Simply Asia Franchise In South Africa
Here’s How Much It Costs To Open A Simply Asia Franchise In South Africa. The people of Thailand are known to be very hard-working, but they are also known for their belief that hard work should be balanced with fun. Simply Asia places great importance on this balanced way of life, aiming not only to bring quality and authenticity to everything it does, but to have fun while doing it. In this way it strives to serve food which reflects the balance and generosity of the Thai culture.
For one to start the process of acquiring a Simply Asia franchise a R20 000 commitment fee is required as a deposit. This will be utilised for any costs associated with the application process in terms of assessments, interviews and tests. The balance of the amount which wasn’t utilised to conduct the relevant checks and screenings will be offset against the required initial franchise fee of R100 000 which is required once the drafting of the franchise agreement has started.
The company also requires a joining fee of R100 000, this fee includes the following: the right to use and operate the name and concept, franchisee and staff training, assistance with the site selection and negotiations and assistance with lease negotiations. The estimated establishment costs may vary based on the size and design of the store. The estimated costs include working capital and all other anticipated costs. For a sit-down restaurant the establishment costs are approximately R1 300 000. For an express store the estimated establishment costs isR1 100 000.The minimum unencumbered cash contribution that is required is 50% of set-up costs.
The franchisee also needs to pay a franchise fee of 7% of monthly net sales and a marketing royalty of 3% of monthly net sales. Monthly royalties are calculated as a percentage of the monthly turnover of each store and enables the franchisor to give ongoing support and service. Marketing royalties cover national advertising, promotions, research and other activities which benefit the Simply Asia brand.
