Cappuccino's Franchising - Frequently Asked Questions

Q: WHAT IS A FRANCHISE FEE?
The franchisee fee is made up of two components namely:

• the upfront franchise fee (joining fee), and
• the ongoing franchise fee (royalty)
• The upfront franchise fee grants the franchisee the rights to use the intellectual property and trade-name under the Cappuccino's brand.
• The ongoing franchise fee (royalties) is a monthly percentage of turnover which enables the franchisor to give ongoing operational advice and service to the franchisee.

Q: WHAT IS AN ADVERTISING CONTRIBUTION?
The advertising contribution is a monthly percentage of turnover contribution which goes to a national marketing fund. The marketing fund uses the funds towards national advertising and other activities to which all Cappuccino's outlets benefit.

Q: HOW MUCH IS THE INITIAL FRANCHISE FEE FOR A CAPPUCCINO'S?
The franchisee fee for a Cappuccino's outlet is R140,000.00 excluding VAT.

Q: WHAT ARE THE ROYALTY AND ADVERTISING PRECENTAGE CONTRIBUTIONS OF TURNOVER FOR A CAPPUCCINO'S?

• Royalty - 5% of net monthly turnover
• Advertising - 2% of net monthly turnover

Q: DOES CAPPUCCINO'S OFFER FINANCE?
The franchisor does not offer finance nor does it have in-house finance available however reputable financial institutions can be recommended.

Q: WHAT TYPE OF TRAINING IS GIVEN?
The training consists of four to five weeks of training in a designated training outlet.

Q: WHAT WOULD BE MY RETURN ON INVESTMENT?
Return on investment is dependent on site location, gearing, lease agreement and your capability of running your business in accordance to the Cappuccino's model.