F.A.Q

We trust that this information will provide some useful insights into the Kanhym franchise. If you feel that you would like to pursue the opportunity further and become part of the Kanhym community then the next step is to complete an application form for consideration.

How do I become a franchisee?

  • The first stage is to complete our application and confidentiality documents and return them to us.
  • We will arrange a meeting with you in order to discuss the franchise in more detail and answer questions that you may have.
  • Once we have identified a target area with you we shall assist in finding a suitable location.
  • Whilst this is taking place your funding application (if applicable) will be submitted and processed.
  • Upon confirmation of sufficient funding for the business and locating suitable premises we shall move into a design and build phase; which typically can take 8 to 12 weeks.
  • You will undergo training whilst the outlet is being built.

What is the cost to set up a Fresh Meat Deli or a Biltong Deli ?

The investment in a Kanhym franchise will vary, depending on the size and situation relating to the premises.

  • A Fresh Meat Deli will involve an overall investment in the region of R4 million
  • A Biltong Deli will involve an investment in the region of R 300,000
  • These costs are exclusive of VAT and mainly relate to the building and equipment costs.

What other costs should be budgeted for ?

Over and above the set up costs there will usually be other costs, which could include the likes of:

  • Rental deposits – between 1 and 3 months rental
  • Electricity deposits – in the region of R5,000
  • Lease stamp duty – calculated at 0.6% of the rental for the lease period
  • Liquor licence – in the region of R10,000
  • Plan submission fees – approximately R2,000 to R3,000
  • Telkom deposit – in the region of 1 months charges
  • Staff recruitment and training – in the region of 1 months wage cost
  • Operating capital – between R25,000 and R100,000 (depending on store type)

What do I get when I purchase a Kanhym franchise ?

Once you have been approved as a franchisee and paid the franchisee fee Kanhym will provide you with the following:

  • Assistance in negotiating and concluding a lease
  • Design, development and commissioning of the new store

What fees do Kanhym charge ?

Fees vary between the Fresh Meat Deli and Biltong Deli franchises.

Upfront Fees:

  • Biltong Deli: R30,000
  • Fresh Meat Deli: R100,000

Ongoing Management Service Fees:

  • Biltong Deli: 5% of sales
  • Fresh Meat Deli: 3% of sales

Marketing Fees:

  • Biltong Deli: 2% of sales
  • Fresh Meat Deli: 1.5% of sales

How much money do I need before borrowings ?

You will typically need a minimum of 50% of the total set up costs of the business available in cash. The balance of the funding can be financed via one of the lending institutions. Whilst Kanhym can assist franchisees in this process there are no guarantees that funding will be obtained.

How much money can I make from my franchise ?

The profit potential varies from one store to another and is a function of a number of variables, not least of which is the management of the business. Shop size and trading hours can also influence performance. Profitability can fluctuate from area to area and even within the same marketing area.

Depending on whether the franchise is a Fresh Meat Deli or a Biltong Deli the earnings of the business (before drawings, interest and tax) can be between 10% and 25% of sales. However, the franchisor makes no guarantees as to the likely profitability of any given franchise business.

It is highly recommended that the franchisee carries out their own assessment of the market potential for a new outlet, prepares and business plan of their own and familiarizes themselves fully with their obligations in terms of the franchise (contained in the Disclosure Document).

Does Kanhym offer a turnkey process ?

Kanhym does assist with the design and build of the stores. However, the franchisee is intimately involved in the process and contracts directly with the architect and appointed development company.

What is the term of the franchise agreement ?

The franchise agreement with Kanhym typically runs for a 5 year period. The franchisee has an option to renew for an additional period of 5 years, subject to the fulfillment of renewal conditions and renewal of a lease for the premises.

Is the franchise agreement negotiable ?

The terms and conditions of the franchise agreement have been developed in order to maintain and protect the integrity of the Kanhym brand. The agreement is therefore not negotiable.

What personal guarantees are required in a Kanhym franchise ?

The franchise agreement and the lease agreement will require the franchisee to execute personal guarantees. If funding is obtained the bank will typically require the franchisee to execute personal guarantees as well. If the business is operated under a CC or Company it is usual for the Members or Shareholders to provide personal guarantees in relation to the aforementioned contracts.

Do I need to consult a lawyer ?

We would recommend that you consult with a lawyer in order to ensure that you have a full understanding of the contracts that you will enter into as a franchisee.

What personal requirements does the operation of a Kanhym franchise place on me ?

Operating a business is a demanding and challenging task and requires your full attention in order to ensure success and compliance with the requirements of Kanhym’s standards of product quality, service and hygiene.

Do I have to buy products from specified suppliers ?

You will be required to purchase from specified suppliers. Beef, lamb, pork and all biltong products are produced by Kanhym and it is compulsory that these products are purchased from Kanhym. There are other nominated suppliers for a range of other products within the stores. It is permissible for franchisees to list other suppliers once they have gone through an accreditation process.

Do I have control over my selling prices ?

Kanhym will provide you with advice and guidance in relation to your selling prices. Ultimately the selling prices are determined by the franchisee.

What about ongoing support ?

Each franchisee will be allocated a franchise consultant. This person will keep the franchisee up to date on what is happening within the franchise, new methods and ideas, as well as conducting regular business and marketing reviews with the franchisee.

Exciting new business
opportunities in Gauteng.

Kanhym the well-known farming giant, with a history spanning more than seven decades, is now entering the retail market with a range of business opportunities which we believe can better serve today's discerning consumers

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