franchising

What is Smooch?

Smooch is premium real frozen yoghurt franchise brand with a purpose to create significant moments of magic and joy for our patrons. Our self-service environment gives guests the freedom to create their own perfect frozen yoghurt combination they way they want it, when they want it. Our focus is to create a world class South African brand with distinctive design, quality products and outstanding service.

How much does a Smooch outlet cost?

The average set up cost of a Smooch store is R1 100 000 upwards, depending on the size and location of the store. This excludes any potential Tenant Installation (TI) allowance received from landlords. This is for a ‘turn-key’ operation exclusive of opening stock, any form of rental deposit and VAT.

 Cash Flow Needed is as Follows:

(These figures are estimates calculated at March 2014 and are subject to change)

R 1 100 000 (ex vat)  Cost of Average Store (70m2)
R    110 000 (ex vat)  Sign Up Fee
R      35 000 (ex vat) Design Fee
R      65 000 (ex vat)  Smalls, Paraphernalia, Printed Material, and Uniforms
R      70 000 (ex vat)  Initial Stock
R      20 000 (ex vat)  Operating Capital
R 1 400 000

 R 700 000 of these funds must be unencumbered funds.

 Unencumbered means shareholders capital that is not subject to any creditor claims or liens. For example, shareholders contribute capital from savings it is unencumbered. Unencumbered funds must be liquid cash not real estate.

What are the Franchise and Royalty Fees?

  • The upfront franchise fee fee is R100 000 ex VAT, payable on signature of the Franchise Agreement.
  • Royalties are charged at R1,35 per branded cup bought from the Franchisor’s Central Distribution. The monthly Marketing Fee is a fixed fee of R4 650.
  • All amounts quoted are exclusive of VAT and escalate annually in March irrespective of when the store is opened.

What are the site criteria?

The selection of our sites is paramount to the success of the business. Our criteria demand a site with high passing foot traffic with good visibility, into and out of the store. Sites can be located inside shopping malls close to movies, food courts and entertainment areas or it can be street facing at street level with good proximity to convenient parking. The size requirements vary between 60m2 and up to 150m2 with an additional outside seating if possible. Our stores are equipped with clean, modern décor and furniture, and aim for cleanliness with an open and welcoming feeling.

 • ±70m²
• Outside seating – minimum 20 m²
• High visibility
• Signage opportunity
• High foot traffic
• Shopping and strip centres
• Family destinations
• Good parking
• Located close to schools
• Secure

What sites are available?

One of the factors attributing to the success of Smooch has been the marriage of the operator to the right site. Although limited sites are available, our team works hard to secure the best site for Smooch Franchisees. We will entertain proposals for new sites, provided the site meets the basic criteria, the rental is reasonable and it is a great Smooch site. Our Sites and Development Manager is already in discussion with most of the landlords with appropriate sites and as such all site enquiries must be directed through us before approaching any landlord.

 

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