The franchise fee is made up of two components namely the Initial Franchise Fee also commonly known as a joining fee and secondly the ongoing franchise fee commonly known as Royalties. The Initial Franchise Fee goes toward signage and the drawing up of legal documentation.
Design, plans, project management, training, menus and various other items are for the franchisees expense. The ongoing franchise fee (Royalties) is a monthly percentage of turnover contribution, which enables the franchisor to give ongoing service in respect of Franchisee Support.
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What is an Advertising contribution? |
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The Advertising contribution is a monthly percentage of turnover contribution, which goes to a marketing fund. All artwork is to be compiled and approved by the franchisors own Ad Agency. Certain contributions will be channelled through the marketing fund for the franchisor to market the brand.
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How much is the Initial Franchise Fee for a Rhapsody’s? |
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The franchise fee for a Rhapsody’s is R300 000 excluding VAT together with either a R80 000 guarantee or a Deed of Surety ship. For new outlets outside of the Republic of South Africa the joining fee is R400 000 excluding VAT with a Deed of Surety ship.
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What is the Royalty and Advertising percentage contribution of turnover for a Rhapsody’s restaurant? |
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Royalty – 6% of monthly turnover. Advertising – 1% of monthly net turnover.
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What would the approximate set up cost be for a Rhapsody’s? |
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Approximate set up cost for a Rhapsody’s is in the region of R4,000,000.00 excluding VAT. This will vary depending on the size of the outlet and the landlord’s contribution. Set up cost includes equipment, shop fitting, wet works, furniture and fixtures.
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How much working capital is required? |
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Between R85 000 and R145 000 working capital would be required.
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How much would be required for stock? |
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Between R100,000-00 and R150,000-00 stock would be required.
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What is the approximate size of a Rhapsody’s? |
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The approximate size of a Rhapsody’s is between 400m2 and 750m2.
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What type of training is given? |
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The training consists of a minimum of 3 months which is all done in an existing store level. A management competency program is strictly adhered to and will be accessed weekly.
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What would be my return on investment? |
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Return on investment is dependant on site location and the capability to manage and run your business according to the specified Rhapsody’s standards and operating procedures. Rhapsody outlets enjoy a return on investment between (19-25%). (Proposed budgets are available).
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How would I apply for a Rhapsody's franchise? |
Step 1: Down Load a Franchise Application form from the web site.
Step 2: Complete the Franchise Application form and forward to Rhapsody’s Flavours of Life Franchising Ltd via post, fax or e-mail.
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What happens after my Franchise Application is received by Rhapsody’s Franchising? |
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The Franchise Application form is processed and should your application be successful a list of existing sites for sale will be forwarded to you should there be no new sites available.
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Is the Franchise Application confidential? |
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Your Franchise Application will be treated in the strictest confidence. The completion of the Franchise Application Form is a standard procedure and is in no way binding on either party, however gives us comfort in your commitment in pursuing a Rhapsody’s Franchise.
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