As a previously franchised business, we are fully aware of the complete unfairness and lob sidedness of current franchise agreements. These agreements use to result in profitability for both the franchisor and the franchisee, however the reality has changed over time. Currently franchisors benefit over and above the usual franchise fee and royalties by receiving rebates from suppliers, concluding one sided supply agreements with suppliers and by charging excessive fees in terms of the supply of administration and information technological systems on which they also receive rebates. They further make it impossible for such a business to conduct ābuy-outsā when they are unable to supply a specific item ā this resulting in customer dissatisfaction and poor customer service which eventually hinders the franchise business in growth and turnover.
As a result of the unfairness we experienced we have decided to offer franchise opportunities of Electreus which will in principle be completely different and aimed at a beneficial relationship to both the franchisor and franchisee by:
- Allowing the franchisee to directly negotiate with approved suppliers.
- Not having any supply agreements with approved suppliers to receive rebates.
- A low fixed percentage on turnover as royalties which includes marketing assistance.
- Allowing franchisees to source and purchase start-up items āshelving and brandingā from the most price competitive supplier.
- Providing an approved back office / point of sale provider without additional costs to the franchisee other than supplier costs.
The above not being exhaustive, we strive to a business relationship that is beneficial to both parties. Currently we are investigating the viability of also incorporating a repairs section to the business model and once we have one up and running we will also offer this to our franchise holders.
Our joining fees are very competitive considering the change in posture to usual franchised businesses and range from R80 000.00 for an express business to a maximum of R300 000.00 for large store. (Excluding vat, set-up costs and equipment)
We look forward to you joining our unique, understanding and supporting family geared at being dynamic with the aim of generating profit for the both of us.