CostsAgents & Licencees » Costs
The costs for a new Nannucci franchisee, comprise are a once-off establishment fee and thereafter a monthly marketing & franchise fee. Detail is as follows:
a) ONCE-OFF/UPFRONT COSTS
- A Licence Fee of R35 000,00 plus VAT is payable for each outlet, unless more than 1 outlet is opened/acquired simultaneously or within 60 days. In that event, the fee is R35 000 PLUS R10 000 per additional outlet. The fee covers:
- ALL training for the franchisee on ALL the aspects of the business
- A loan copy of all our operational manuals
- Purchase of the license granting you exclusivity for a fixed area (normally a fixed radius around each an outlet)
- All contract, legal & administration charges
- The shop design fees to cover the number of stores to be opened preparation of a professionally prepared sketch diagram and CAD drawing of your store(s). This includes consultation time with external retail experts and help with implementation.
- Assistance with and all promotional material to for “Opening Day”
- The fee EXCLUDES all/any engineering & installation costs pertaining to the commissioning of equipment.
b) MONTHLY ROYALTY FEES
A monthly franchise royalty fee equivalent to the lesser of R1000 OR 5% of net sales plus VAT for the continued use of the franchise rights. This is calculated based on the previous month's sales.
c) MONTHLY MARKETING COSTS
A monthly marketing fee equivalent to 60% of the royalty fee plus VAT – i.e. 3% of turnover. (In these calculations, “Nett Sales”, means and include all sales by the outlet of all services. A “Monthly Sales Declaration” is to be submitted to the Franchisor's offices by no later than the third day of the following month.
The Royalty and Marketing fees payable by the franchisee shall be paid on or before the 7 th day of the month (same day as SARS PAYE amounts are due), following the calendar month to which such royalty relates. These amounts are payable by debit order and the onus is on the franchisee to ensure payment. |
