The ACDC Express Franchise Opportunity. Annexure 1E: The ACDC Express Prospectus

Transcription

1 The ACDC Express Franchise Opportunity Annexure 1E: The ACDC Express Prospectus

2 THE ACDC EXPRESS PROSPECTUS The ACDC Express Prospectus A GIANT IN THE ELECTRICAL INDUSTRY TAKES A STEP INTO THE WORLD OF FRANCHISING Established in 1984, ACDC Dynamics is the leading manufacturer, importer & distributor of quality products in the electrical, pumps & tools industries. Manufacturing includes transformers, power supplies, electronic timers, motor starters and power factor correction systems. QUALITY PRODUCTS AND SERVICES In 2007 the ACDC Franchise company was formed, as a retail extension of the already well-established manufacturer, importer and distributor of quality electrical products, ACDC Dynamics. These franchise stores were aptly named ACDC Express. ACDC Express consists of independently owned electrical retail stores whose products are primarily sourced from ACDC Dynamics and boasts a product range of over individual items, that include security, hygiene, automation, telemetry systems, pumps, switchgear and instrumentation, energy management and power factor control, solar, tools, wiring and cable management, as well as a comprehensive range of lighting products. We are stockists of premium brands such as Gewiss, Terasaki, Datalogic, C & S Electric, Rhomberg, Weicon, Moël, Orbis and Oérre. We specialise in the electrical sector, catering for the household (DIY), contractor, industrial, agricultural, mining and manufacturer markets. ACDC Express is a unique retail store concept that offers a convenient and versatile shopping experience, allowing customers to browse at leisure in an electrical supermarket. Our highly experienced technical staff are able to offer innovative solutions tailored to suit the needs of our customers. Their knowledge extends but is not limited to instrumentation, home and business automation, sustainable energy solutions, agricultural tools and lighting. 1

3 About the ACDC Express Franchise ORGANISTATION MISSION STATEMENT ACDC Express endeavours to provide a complete range of electrical solutions, in the most convenient way possible. We strive to continuously supply retail and industrial customers with practical and affordable solutions to all their electrical needs. The company is known for its premium brands and vast product range that allows ample choice for all target markets. Our principles are customer driven, as we constantly source the best products, at competitive prices. The company philosophy stems from its family orientated history, which leads to employee and customer satisfaction. ACDC regards itself as an ethically sound business, whose practice ensures that the highest standards are maintained. VISION We aspire to be the leading electrical retail franchise in Africa, where customers consider us first for top quality products, excellent customer service, convenience and competitive prices. ABOUT ACDC EXPRESS FRANCHISE CUSTOMER SATISFACTION A sale is not something that you pursue; it is something that happens to you while you are immersed in serving your customer. At ACDC Express we strive for service excellence. Our sales staff attend regular training sessions to equip them with superior product knowledge and unrivalled customer service etiquette. The brand managers and training facilitators at our Head Office work intensely on all aspects of the brands to ensure that our sales staff are equipped with up to date information and an ability to provide excellent after sales services. To extend our accessibility we offer direct communication lines to our customers via Facebook, Twitter (@ACDCExpress) and our website Our latest offerings and promotions are also included in our newsletters. It is possible to subscribe to our exclusive subscription list through registration on our website. ACDC express is about being a one-stop shop, about competitive pricing, stock availability and preferential supply, quality products all detailed in a fully comprehensive catalogue, online ordering, early opening for early trade of the retail outlet and an established relationship with its customers. The benefits sought after are advanced products, guarantees on the products, brand availability, the look and feel, convenience, novelty, and technical know-how. ACDC Franchising undertakes to develop its network of franchises and recruit and select the correct franchisees to grow the brand. Also, national marketing will take place to create product and brand awareness, the best nominated suppliers will be negotiated and approved for our franchise network, and we would also provide financial advice, keep you up-to-date in terms of IT trends and advise you on ideal stockholding. 2

4 The Ideal Franchisee The following are descriptions and criteria to distinguish if you match the profile of the type of franchisee we are looking forward to grow our franchise network along with us: JOB DESCRIPTION OF A FRANCHISEE Management of staff including HR/IR responsibilities Recruiting, appointing, training and motivating staff Assist and build relationships with customers Stock management Logistics Quality control Service and maintenance of the outlet Stock ordering and control System controls General business administration Legislative compliance (PAYE / UIF etc) Implementation of new franchise policies and procedures Reporting and administrative requirements of the Franchisor Business planning (forecasts, budgets etc) Financial management - cash flow & standard reporting Sales & marketing - including local area marketing PERSONAL CHARACTERISTICS Prepared to work very hard and work long hours Passionate, committed and dedicated Common sense and lateral thinker Specific attention to detail THE IDEAL FRANCHISEE SKILLS Financially savvy People skills (customers and staff ) Communication, relationship, interpersonal and leadership skills Systems oriented Organised Computer literate Multi-tasking operations and administration Sales abilities Management skills OTHER POINTS Practical business experience in electronics field Retail experience is preferable understand stock management Unencumbered cash requirement Prepared to be an owner-operator - ideally not have other employment or other business interests (at Franchisor discretion) 3

5 Benefits of Being a Franchisee with ACDC Franchising WHAT KIND OF SUPPORT WILL I RECEIVE? In terms of the franchise network and the Franchisor s ongoing commitment to its network of growing franchisees, ACDC Franchise will honor its obligations in the following manner: BENEFITS OF BEING A FRANCHISEE Recruitment and selection of franchisees. Approval of sites (approval of lease). Advisory role in terms of store set up. Provide project plan, site specifications and where applicable, preferred contractors. Training of the franchisee. Assistance with the initial recommended order. a. Additional responsibilities to be taken care of by the franchisor: The franchisor shall provide the franchisee with advice and consultation of the following: i. Initial set-up requirements; ii. Incorporation of the trade name and trademarks on stationary, uniforms etc. iii. The location of the premises; iv. Internal and external signage for the premises; v. ACDC Franchise s systems; vi. The launch of the business whereby the cost will be incurred by the franchisee; vii. Advice on the management and accounting aspects of the business; viii.advice regarding the layout, fixtures and fittings of the premises selection of equipment, and computer hardware and software. The costs thereof is to be funded by the franchisee; ix. ACDC Franchise undertakes to provide the franchisee and its staff with adequate training to enable the staff to meet the requirements of the agreement and manuals. Should certain parties not meet the required competency levels of ACDC Express it shall inform the franchisee accordingly; x. ACDC Franchise will provide the franchisee with a manual(s) specifying certain policies and procedures the franchisee is required to adhere to in the management and operation of the business. ONGOING OBLIGATIONS OF THE FRANCHISOR TO ITS FRANCHISEES: Marketing. Building the brand. Ongoing training. Research and development. Sourcing new products. Approval of suppliers. Supplier quality control. Benchmarking on performance. Field service systems. Examine management accounts from the franchisees on a monthly basis. Communication: initiatives as specified. Systems development. Approval of local marketing initiatives. 4

6 Our Existing Franchises EXISTING FRANCHISES ACDC EXPRESS BALLITO ACDC EXPRESS BELLVILLE ACDC EXPRESS BLOEMFONTEIN ACDC EXPRESS POLOKWANE ACDC EXPRESS RUSTENBURG ACDC EXPRESS SOMERSET WEST ACDC EXPRESS RICHARDS BAY ACDC EXPRESS PIETERMARITZBURG ACDC EXPRESS SECUNDA ACDC EXPRESS MIDDELBURG 5

7 ACDC EXPRESS CENTURION ACDC EXPRESS STEELPOORT ACDC EXPRESS LICHTENBURG ACDC EXPRESS NELSPRUIT ACDC EXPRESS STRIJDOM PARK ACDC EXPRESS STRUBENS VALLEY 6

8 How Do I Become A Franchisee? The franchisee selection process is detailed and thorough simply because we want to be sure that we have recruited the right personality to join our franchisee network and also to help us grow the ACDC Express brand successfully. Below is a step by step breakdown of the recruitment process. STAGE STAGE INITIAL STAGE 1 Obtain the application form from Franchise Head Office Tel: or Complete 1B and submit. STAGE HOW TO BECOME A FRANCHISEE 4 COMMITMENT STAGE 4A Sign commitment undertaking document. Received draft agreements STAGE 5 DETAIL STAGE 2 2A Complete full application form and submit. A credit check is performed. Fillout questionaire. 2F A business plan guideline is sent to you. STAGE INTERVIEW STAGE 3 Interview with Franchisor. STAGE Psychometric assessment 6 second interview ASSESSMENT Receive and Review Business Plan submitted. STAGE 8 inception Date of receipt for the balance of upfront franchise fee. Signing of: 8A - The Franchise Agreement. 8B - Franchise Supply Agreement. 8C - Sign All Suppliers Application Form. STAGE 7 site assessment Franchisor Site Evaluation. External Company Site Evaluation. 13 7

9 Investment Information LARGE STORE EXPRESS MINI STORE INVESTMENT BREAKDOWN INVESTMENT BREAKDOWN Upfront franchise fee R Upfront franchise fee R Shop Set up R Shop Set up R Shop fitting (Counter,coffee unit,tiles,security ) R Shop fitting (Counter,coffee unit,tiles,security ) R Shelving & Merchandising R Shelving & Merchandising R IT Infrastructure R IT Infrastructure R Signage R Signage R Product Displays R Product Displays R Training (2 Weeks accomodation, 5 staff ) R Training (2 Weeks accomodation, 5 staff ) R Opening Event R Opening Event R INVESTMENT INFORMATION Delivery Vehicle Delivery Vehicle Peugeot Boxer R Peugeot Boxer TOTAL SET UP COSTS R TOTAL SET UP COSTS R Stock R Stock R Working Capital/Overdraft R Working Capital/Overdraft R TOTAL COST R TOTAL COST R This store requires a retail. location between 500m2-700m2 The type one store is best suited for larger areas. We guarantee that another Express store will not be opened within an 8km radius. This store has a higher staff requirement that houses all operational staff. 75% of the store is retail. R a retail location between This store requires 200m2-400m2 The Express mini store is best suited for smaller areas such small towns. Priotity will be given to existing Express store owners. This store has a minimum staff requirement. 90% of store is retail. The total investment varies and is to be confirmed per area of application. The unencumbered cash contribution required should be a minimum of 50% of the total cost. This will be negotiated with the relevant financial institution at the applicable point in the Recruitment and Selection Program. Note: All costs shown are indicative and subject to change and are exclusive of VAT. Working capital will be required to carry the new business for at least 6 to 9 months. This will vary from franchisee to franchisee and from business to business. We too will assist you in calculating the working capital requirement for your business through the compilation of cash flow projections etc. Royalty Fee Structure Royalties are calculated on a monthly store turnover. Second year onwards First year R 0, ,00 R , ,00 R , ,00 R ,00 and above 0% 1% 2% 3% Flat Rate 3% * Example: 2% of R1.2 million = R

10 Gauteng 1 Limpopo Kwa Zulu Natal Free State Fourways Messina Bloemfontein Welkom 1 Boksburg New Castle Vryheid Rosebank Port Shepstone Pretoria Central AVAILABLE FRANCHISE LOCATIONS 2 Lephalale Ladysmith Midrand Isipingo Modimolle/ Bela-Bela Pretoria West Silverton Pinetown Gezina Tzaneen Montana Sandton Soweto Vereeniging Edanvale Woodmead Existing Stores Ballito Bellville Bloemfontein Centurion Durban Central Klerksdorp Lichtenburg Midde 9

11 Available Franchise Locations North West 1 2 Eastern Cape 1 1 Upington Kathu Port Elizabeth 2 Potchefstroom elburg Northern Cape Mpumalanga Cape Town City Parklands Umtata Piet Retief Kimberly Vryburg Western Cape Paarl East London Stellenbosch Port Alfred Hazeyview Tokai Hermanus Malmesbury George Paarden Eiland Knysna Worcester Mosselbay Montage Garden Large Store Existing Stores Express Mini Store Other Regions Out Of South Africa Available Nelspruit Pietermaritzburg Polokwane Pretoria East Richards Bay Rustenburg Secunda Somerset West Steelpoort Strijdom Park Strubens Valley 10

12 Distribution Reach Target Market PRIMARY AGRICULTURAL ARCHITECT / DESIGNER AUTOMOTIVE CORPORATE / COMMERCIAL ELECTRONICS End-Users ENGINEER ENTERTAINMENT HOSPITALITY IRRIGATION / PUMPS MANUFACTURING MEDICAL MINING / MINERAL PROCESSING PETROCHEMICAL PUBLIC SECTOR RETAIL BUILDING / SHOPFITTER ELECTRICAL GENERAL Contractors IRRIGATION / PUMPS MINING / MINERAL PROCESSING SERVICE SIGN-WRITING SECURITY CONTRACTOR SOLAR CONTRACTOR SECONDARY DISTRIBUTOR DISTRIBUTION REACH ELECTRICAL WHOLESALER Resellers HARDWARE RETAIL SPECIALIST STOCKIST Manufacturers ORIGINAL EQUIPMENT MANUFACTURER PANEL BUILDER 11

13 Our Marketing Efforts The ACDC Express brand is backed by a dynamic and motivated marketing team that is committed to creating awareness and excitement around each store, as well as maintaining a strong brand presence within the market. OUR MARKETING EFFORTS ARE EXECUTED ON TWO LEVELS: NATIONAL AND LOCAL National: Print Radio Exhibitions Social media Online marketing Quarterly and seasonal specials OUR MARKETING EFFORTS Local: Community publications Street pole advertisements Sponsorships Charity drives Corporate gifts Launches 12

14 Some Existing Advertising... PRINT ADVERTS Everything Electrical for the Home, Office & Factory Garden Lights Flood Lights Wall Lights Decorative Lights Pool Lights Downlights Everything Everything Electrical Electrical for the for Home, the Home, OfficeOffice & Factory & Factory Specialists in: Lighting Wire & Accessories Sockets & Switches Security Solar Enclosures Household Electronics Audio & Visual Alarms Pumps & Levels Switch Gear Automation Tools Industrial Timers & Sensors Stores Nationwide Bloemfontein Tel: Centurion Tel: Polokwane Tel: Nelspruit Tel: Rustenburg Tel: /5 Strijdom Park Tel: Strubens Valley Tel: Somerset West Tel: Maputo Tel: Express Follow us on: Ballito Tel: LED STRIP LIGHTING DECORATIVE LIGHTING EXTRACTION FANS SOCKETS & SWITCHES DOWNLIGHTS Specialists Specialists in: in: Lighting Lighting Security Security Solar Solar Household Household Wire &Wire Accessories & Accessories Enclosures Enclosures Electronics Electronics SwitchSwitch Gear Gear Industrial Industrial Sockets Sockets & Switches & Switches Audio & Audio Visual & Alarms Visual Alarms PumpsPumps & Levels & Levels Automation Automation TimersTimers & Sensors & Sensors Tools Tools Centurion Polokwane Bloemfontein Ballito Tel: Tel: Tel: Tel: Nelspruit Tel: Rustenburg Strijdom Park Strubens Valley Somerset West Maputo Tel: /5 Tel: Tel: Tel: Tel: Express Stores Nationwide: EXISTING ADVERTISING SPECIALS 13

15 Some Existing Advertising... SOCIAL MEDIA MARKETING FACEBOOK TWITTER EXISTING ADVERTISING EXHIBITIONS STREET POLE ADVERTISING 14

16 Some Existing Advertising... BILLBOARDS Everything Electrical for the Home Office and Factory ACDC EXPRESS Tel: NEWSLETTER & PRODUCT ALERTS PLUG TOP SPECIAL SNP300-WH 15A White Snapper Plug Top SNP300-BK 15A Black Snapper Plug Top SNP300-R 15A Red Snapper Plug Top SNP300-CL 15A Clear Snapper Plug Top SNP300-BL 15A Blue Snapper Plug Top SNP300-OR 15A Orange Snapper Plug Top SNP300-Y 15A Yellow Snapper Plug Top SNP300-BR 15A Brown Snapper Plug Top Only EXISTING ADVERTISING Everything Electrical for the R 6.83 Each Take advantage of this ONCE OFF NOW! Valid from 1 June - 30 June

17 Frequently Asked Questions Q: WHAT SIZE OF THE STORE IS NEEDED? This will depend on the location of the site as we have specified areas that need large or small sites. Q: CAN THE FRANCHISE SELL ANY BRANDS OTHER THAN THAT OF ACDC? No, ACDC Dynamics will be the primary supplier of the brands to be sold. Secondary suppliers will need to be nominated by ACDC Franchise. Q: WILL ACDC FRANCHISE FIND A LOCATION FOR ME TO LEASE? No, ACDC Franchise will provide you with a site selection guideline that will assist you in finding the ideal location to open your store. Its suggested that at least three possible sites are selected encase the first one does not qualify. Q: WHAT IS ACDC FRANCHISE S DISCOUNT STRUCTURE? As the recruitment process continues, this information will be made available to you. It must be said that the discount structure is very attractive and favourable at this point in time. Q: IF I REGISTER AS AN INTERESTED APPLICANT, AM I FINANCIALLY COMMITTED? FREQUENTLY ASKED QUESTIONS The process of registering merely shows your interest in the possibility of becoming a future franchisee. It needs to be highlighted that there is no financial commitment when registering. We as the franchisor will walk with you in terms of providing the necessary guidance and advice. Q: ONCE THE FRANCHISE AGREEMENT HAS BEEN SIGNED HOW LONG WILL IT TAKE BEFORE I CAN OPEN MY STORE AND BEGIN TRADING? To open and begin trading can take up to three months. This is primarily because of the branding requirements of the store, packing stock and any renovations the store may require. Q: CAN I TAKE INITIATIVE AND MARKET MY STORE LOCALLY? Yes, you are encouraged to locate and take part in possible marketing opportunities in your local area. All artwork will need to be designed and approved by head office to ensure brand integrity. 16

18 ACDC Express Initial Enquiry Application Form (Page 1) Name: Surname: Contact No: Cell No: Physical Address: Postal Address: ID No: Address: DO YOU OWN A BUSINESS? Business Name: Business Industry (Some Information): or ARE YOU CURRENTLY EMPLOYED? Employer: Position/ Occupation: Years Employed: Q&A Q: Are you going to pursue this opportunity on a full time basis? Q: In which geographical area are you interested in pursuing this opportunity? ENQUIRY FORM Word of Mouth Website Publication Other, please specify: 17

19 ACDC Express Initial Enquiry Application Form (Page 2) Q: What do you know about ACDC Express? Q: Why are you interested in ACDC Franchise? Q: Do you have any retail experience? Q: What business and/or sales skills do you have? Q: What unencumbered cash contribution do you have on hand to invest in ACDC Franchise? Q: What do you hope to achieve through owning this business? Q: Why are you interested in the retail industry? ENQUIRY FORM Q: Why are you interested in the electrical industry? Q: What are your interests and hobbies outside of the business arena? 18

20 HEAD OFFICE 2 Nguni Drive, Longmeadow Estate West, Edenvale, Gauteng Nikita Hartman Tel: , nikitah@infinitybrands.co.za ACDC EXPRESS STORE INFORMATION BALLITO BELLVILLE BLOEMFONTEIN CENTURION ACDC Building Douglas Crowe Drive Ballito, Kwazulu-Natal Tel: Tel: Cnr of Strand & Ford Street Loumar, Bellville Tel: Hornby Street Oranjesig, Bloemfontein, Free State Tel: Shop No. 10 Lenchen Centre 9 Jakaranda Street Hennopspark EXT 7 Centurion,Gauteng Tel: LICHTENBURG NELSPRUIT POLOKWANE RUSTENBURG Shop 1 Cnr Kerk & Bantjies street, Lichtenburg Tel: Crossing Centre Cnr of Madiba Drive & N4 Nelspruit, Mpumalanga Tel: Shop No. 8 Polokwane Lifestyle Centre Cnr of Market & Landros Mare Streets Polokwane, Limpopo Tel: Shop No. 6 Hyundai Park, Howick Avenue Waterfall Mall, Rustenburg North West Tel: /5 SOMERSET WEST STEELPOORT STRIJDOM PARK STRUBENS VALLEY Cnr of N2 & Gerber Blvd Strand, Cape Town Western Cape Tel: Bergsering EXT 3 Steelpoort Tel: Unit E1 Strijdom Commercial Park, Tungsten Road Strijdom Park, Randburg Gauteng Tel: Lifestyle Corner West Rand Cnr of Nic Diederichs Blvd & Florin Road Wilgeheuwel EXT 30 Strubens Valley, Gauteng Tel: RICHARDS BAY PIETERMARITZBURG SECUNDA MIDDELBURG 159 Dollar drive Richards Bay Tel: Shop 4 & 5, The Square 4 Chatterton road Pietermaritzburg Tel: Cnr Blouberg & Drakensberg Shop D4 Tel: B Rivier Street Middelburg Mpumalanga Tel: KLERKSDORP PRETORIA EAST DURBAN CENTRAL Shop 81 & 85, Flamwood Walk Shopping centre 1 Brother Patrick lane Klerksdorp Tel: Shop 34A, Menlyn Retail Park Cnr Lois Avn. & Garsfontein Rd. Newlands, Pretoria Tel: Florance Nzama Street Umhlanga Rocks Durban Tel: