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OBC CHICKEN FRANCHISE OPPORTUNITIES

OBC Chicken is looking for franchisees to join their more than 50 stores country-wide to service the burgeoning emerging market.

OBC Chicken offer not only their famous chicken products but fresh meats and grocery products which are heavily supported by marketing and advertising campaigns. This has made OBC a respected and trusted brand in South Africa.

OBC also offer franchisor training and support, POS systems and IT support, central distribution for both perishable and non-perishable foods PLUS our franchisees get the benefit of central bulk buying so that they compete on an equal footing with the national chains in their areas.

An OBC Chicken store is on average between 600 and 700m², and will cost approximately R4.5 million to R5.5 million to establish.


IF YOU WOULD LIKE TO JOIN THE SUCCESSFUL OBC FAMILY, HERE'S WHAT WE'LL DO FOR YOU:

Utilise our vast, up-to-date market research data to help you select the very best location for your new store

Supply a full service, turnkey operation including area planning, store layout, fixtures and fittings and launch promotion material for all new stores including modern, attractive exterior and in-store signage

Extend your competitiveness through ongoing distribution support of fresh and frozen products as well as grocery items at competitive prices through our central warehouses and distribution infrastructure

Partner your product requirements through our sophisticated processing and order operations

Advise you on best in-store layout to ensure maximum profitability from every centimetre of shelf space

Back you up with regular advertising and effective promotions.

In short, a mutual partnership from setup to the ongoing success of your store.

If you are an entrepreneur with a nose for a profit opportunity and you would like to join this dynamic group or would like to convert your existing business, please contact Robbie on 082 337 7747 who will explain the unique OBC support system for both small and large stores with store plans for most business environments ranging in price from under R1 million up to R4 million.

OBC Chicken have a fully-fledged Franchise Development and Finance Department to assist you, including arranging finance packages for suitable candidates.

Apply for an OBC Chicken Franchise Now!

FRANCHISE FREQUENTLY ASKED QUESTIONS

The franchise fee consists of two parts - an initial joining fee and an on-going franchise fee. The joining fee covers the legal requirements, legal documentation and staff training. The franchise fee is a predetermined percentage of monthly turnover which is utilized to assist with the on-going support to the franchisee.


The advertising fee is 1% up to a maximum of R19 000 which is placed in the OBC Chicken Advertising Club Fund. The fund is administered by a committee comprising of Franchisees and OBC Chicken Management. The Advertising Club funds national advertising and promotional activities that benefit all OBC Chicken Franchisees.

The franchise joining fee is R120,000 excluding VAT.

Royalty fee(s): - an amount equal to 


2% (two percent) on the monthly turnover on the first R1 500 000.00 (One million five hundred thousand rand) only;

1% (one percent) on the monthly turnover on the next R1 000 000.00 (One million rand) only;

0.5% (half a percent) on the monthly turnover for everything there above R 2 500 000.00 (Two Million five hundred thousand rand);


Example:      

In the event your turnover is R3 200 000.00 a month, the royalty fees shall be paid as follows:

2% on the monthly turnover on the first R1 500 000.00= R30 000.00

1% on the monthly turnover on the next R1 000 000.00= R10 000.00

0.5% on the monthly turnover for everything there above R 2 500 00-00, namely R 700 000.00= R3 500.00

R30 000.00+R10 000.00+R3 500.00=R43 500.00 (excluding Vat) royalty fees shall be payable

While this will vary depending on the size of the store the average cost is from R6.5 million including VAT. This covers equipment, shop fitting, signage, wet works and furniture and fixtures.

R3 Million deposit (unencumbered), gets successful candidates talking business.

No. OBC Chicken do not offer finance to their Franchisees.

An allowance of R500 000 should be made for opening stock and between R100 000 and R150 000 for working capital.

The average size is between 600 & 700 square metres.

Yes - there is a standard training module that is given to all franchisees.

Return on investment depends on a host of factors not least of which are store location, gearing, leases and importantly your ability to run the businesses in accordance with OBC Chicken standards.

Your application will be processed. If it is successful you will be informed accordingly and a list of identified sites in your area will be provided to you. We will assist you in securing a suitable site. If you are proposing to convert an existing store we will inspect it and advise you accordingly.

Yes. All applications are in the strictest of confidence and are standard procedure and are in no way binding on either party.

This is a combination of location and the people traffic passing the site which is monitored on an on-going basis. We also target taxi ranks, bus depots and informal settlements.

It is an established policy of OBC Chicken to protect the business of their existing franchisees. Therefore they would not consider opening a new store that would negatively affect that franchisees business. Where a site becomes available in the same town or area, such a site would be offered to the existing franchisee on a first refusal basis.

No, but it is the preferred option.