Cappuccino's Franchising - Financial Information

ESTIMATED ESTABLISHMENT COSTS (EXCLUDING VAT)

• The estimated amount of funds you will require is +/- R4,200,000.00 (four million two hundred thousand Rand), made up of:
  • Joining fees:  R 140,000.00 
  • Estimated development costs  R 3,660,000.00
  • Estimated working capital  R 200,000.00
  • Estimated landlord/electricity deposits R200,000.00
• The joining fee, also known as the initial fee, shall be payable to the franchisor on the signing of the franchisee agreement. The joining fee allows the franchisee access to all the intellectual property of the franchisor, the right to use the Cappuccino’s name and trade as a Cappuccino’s restaurant.
• Please note that the development costs, also known as the establishment costs, are estimates only and may vary depending on numerous factors including but not limited to site location, size of premises, seating requirements, signage, personal franchisee requirements and exchange rate fluctuations. All fixtures and fittings, equipment, opening stock, computer systems, building work, signage and uniforms are included in this cost.
• The estimated working capital, also known as the initial working capital, is based on monies that will required for first month rental and stock purchases amongst others.
• CAPITAL STRUCTURE
  • A minimum unencumbered amount of R2,520,000.00 (two million five hundred and twenty thousand Rand) is required by the prospective franchisee. This means it is not loaned or borrowed in any way i.e. against a house bond or low interest loan.
  • The balance of the capital requirement can be financed through various means available to the prospective franchisee