WELCOME TO THE OBC CHICKEN FRANCHISEE INFORMATION PAGE.



The following are answers to the most commonly asked questions.



HOW IS THE FRANCHISE FEE MADE UP?

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.



WHAT IS THE ADVERTISING FEE AND HOW IS IT USED?

The advertising fee is a predetermined percentage of monthly turnovers 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.



WHAT IS THE JOINING FEE?

The franchise joining fee is R80 000 excluding VAT.



WHAT IS THE ONGOING CONTRIBUTION TO ADVERTISING AND THE FRANCHISE FEE?

Advertising: 1% of net monthly turnover.
Franchise fee: 2% of net monthly turnover.



HOW MUCH DOES IT COST TO SET UP AN OBC CHICKEN FRANCHISE?

While this will vary depending on the size of the store the average cost is between R2.1 million and
R2.6 million excluding VAT. This covers equipment, shop fitting, signage, wet works and
furniture and fixtures.



HOW MUCH DOES IT COST T SET UP A SHESHA OBC FRANCHISE?

A Shesha OBC (mini store) costs between R800 000 and R1.2 million to set up.



HOW MUCH AVAILABLE CASH IS REQUIRED AND HOW MUCH CAN BE FINANCED?

50% is required as available cash and the balanced can be financed.



DOES OBC CHICKEN FINANCE THEIR FRANCHISEES?

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



HOW MUCH IS REQUIRED FOR OPENING STOCK AND WORKING CAPITAL?

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



WHAT IS THE AVERAGE SIZE OF AN OBC CHICKEN STORE?

The average size is between 400 & 500 square metres.



WHAT IS THE AVERAGE SIZE OF AN OBC SHESHA STORE?

The average size is between 280 & 350 square metres.



IS TRAINING GIVEN?

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



WHAT RETURN ON MY INVESTMENT CAN I EXPECT?

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.



HOW DO I APPLY FOR AN OBC CHICKEN OR OBC SHESHA FRANCHISE? 

    1.    Access the franchise application form on the website 

    2.    Complete the form and submit it



WHAT HAPPENS ONCE I HAVE SUBMITTED MY APPLICATION?

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.



IS MY APPLICATION CONFIDENTIAL?

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



HOW DO WE IDENTIFY POTENTIAL NEW SITES?


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.




PROTECTING EXISTING FRANCHISEES

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.



IS OWNER OPERATION MANDATORY?

No, but it is the preferred option.