The Franchise

The Products

• The five core products of our business are Exhausts, Tyres, Towbars, Batteries and Shockabsorbers.

• A number of ancillary products could also be fitted, such as Gearlock, Sparewheel Locks, Brakes, Supersprings, etc.
• Bosal is the main supplier of our exhaust and towbar products. These are all SABS approved. Continental suppliers most of our tyres, but other local manufacturers also supply tyres to the group. We fit both Armstrong and Gabriel shockabsorbers.
• As can be seen from our list of suppliers, they are all suppliers of note that manufacture products of outstanding quality. These manufacturers all have O.E. contracts with the local vehicle manufacturers.

The Costs

• Our upfront fee (U.F.F.) is R 50 000.00 excl VAT. For this you will receive a Point of Sale program (software only), Signage, Paint, Flags, Stationary, Corporate clothing, all assistance with the set-up of the shop and advertising assistance.
• The capital required for equipment, furniture/fittings and opening stock will depend largely on the size of the shop, but could range from R 400 000 upwards.
• A monthly Franchise fee is also payable.

Operations

• ABC Fitment Centre is a full member of the Franchise Association of South Africa.
• We are represented throughout South Africa and neighbouring countries.
• We have Head Office representation in each region.
• We do place a high priority on growing the individual franchisees.

Initial Support

• We provide a full Operations Manual.  The manual include the following sections:
  • Starting Up
  • General Operations
  • Admin
  • Marketing & Sales
  • Human Resources
• We can assist with the selection of your site.
• We can assist the prospective franchisee with drafting a business plan, which will include all financial projections necessary.
• We assist with all account applications with the suppliers.
• We assist with the shop layout.
• We can assist with the staff selection.
• We do initial training.
• We assist during the opening of the shop.

Ongoing support

• We provide ongoing training. Various training courses will be offered by our suppliers. We can also arrange factory tours from time to time.
•  Your store will be visited on a regular basis to evaluate and assist with the business. The evaluation includes corporate image, operations, safety, housekeeping and performance and where necessary assistance will be given to rectify problems.
• Regular communications from Head Office are in the form of E-mail, faxes and telephone calls. We also encourage inputs from the franchisees.
• Franchise councils exits in each region and interaction amongst franchisees happen at this forum.
• We negotiate deals with suppliers and National clients on your behalf.

Marketing

• We co-ordinate national/regional advertising from Head Office.
• You must provide for local advertising and promotions. This must be done in accordance with our corporate ID, e.g. colours, layout, etc.
• We do opposition analysis from time to time. This information is used for strategic planning. We also monitor competitive activity.
• Our marketing division looks after National deals, and we have deals in place with all the major Fleet companies.

Legal

• Our franchise agreement is available for your scrutiny on request. The agreement is a standard document that is applied throughout the group.
• The agreement is not linked to an initial term. This is an open and ongoing agreement as long as both parties comply with the contents thereof.
• Territorial protection is not linked to physical borders. New shops must be approved by the regional franchise councils.
• You may sell your business at any stage, but we must approve of the new owner before he/she would be allowed to continue trading as a Kwik-Fit or Fasfit.
• Although we prefer owner-operators, there are situations where the outlet is left in the hands of a manager. If these managers are entrusted with confidential information such as supplier deals and the Operations Manual, he is expected to sign a Confidentiality Agreement.

What it will Cost to Start up your ABC Fitment Centre Franchise

To start a new shop from scratch doing the four major products, i.e. exhausts, tyres, shocks and towbars, you will need to have all the correct tools, equipment, stock, etc. There is no compromise on purchasing these items. ABC FITMENT CENTRE insists that all four products are advertised, correct stock levels are kept, correct equipment, tools, etc. are obtained and all staff are sufficiently and correctly trained.

Listed below are the necessary items that are needed with approximate costs for new equipment. However, the availability of good used equipment can affect considerable savings.

Obviously, if you have an existing related business only certain of these items will apply to you.

All the stock and equipment detailed below is based on an average sized outlet, selling the four major product lines, i.e. exhausts, shocks, towbars and tyres.

Stock	Approximate Cost (Excl.)
Bosal exhausts	R 35 000.00	min
Bosal towbars	R 8 000.00
Tyres	R 70 000.00	min
Armstrong shocks	R 10 000.00
Operating capital	R 50 000.00	per month
Franchise Fee	R 50 000.00

All prices quoted are approximations and exclude VAT.
It is advisable to have a L.D.V.

THE RIGHT LOCATION AND TYPE OF SHOP IS ESSENTIAL TO YOUR SUCCESS!