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  • Mandate: 36261
  • Added: 30 Oct 2023
  • AFS
  • 920

Tombstone Franchises

SA Countrywide, North West
920
Mandate 36261
Added 30 Oct 2023
R 550,000* ZAR
Stock: R 0
Assets: R 550,000
R 30,007 ZAR
Nic Nortje
(PRINCIPAL)
Aldes Prestige
KwaZulu-Natal, Hillcrest
KwaZulu-Natal, Hillcrest
Summary

This well-established and fast-growing tombstone manufacturer is expanding nationally, with franchised shops available across cities and towns in South Africa. They have partnered with MyLife and now offer funeral policies and life insurance. They are the only tombstone company in South Africa who can offer credit through Mobicred.

SELLING PRICE AFS
R 550,000* ZAR
Stock: R0
Assets: R550,000
R 30,007 ZAR
Summary

This well-established and fast-growing tombstone manufacturer is expanding nationally, with franchised shops available across cities and towns in South Africa. They have partnered with MyLife and now offer funeral policies and life insurance. They are the only tombstone company in South Africa who can offer credit through Mobicred.

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How long has the business been established?
20 years

How long has the owner had the business?
20 years

What is the Franchise opportunity about?
Granolithic tombstones originate in the USA and have become very popular. Royal Tombstones has been manufacturing them locally for the last 10 years, and supplying it to clients via its own shops. Its growth has accelerated to the point where there is a national demand, and the company has elected to service this demand via franchised outlets. Being a franchisee means you will open a shop and be supplied with everything necessary to trade, including amongst other things, furniture, computers, business cards and pamphlets, signage, branded uniforms and even free stock - the first 10 tombstones are free!

Our tombstones are three times thicker than granite giving it a much bigger impressive look at a fraction of the price of granite hence giving Royal the competitive edge. We are able to offer the Tombstones in various different colours as per clients request which the granite market cannot. So overall Royal Tombstones has bigger, brighter tombstone at a cheaper cost. Due to the market is South Africa and Africa where our cultures still place a high importance of Tombstones, we have a definite market which is not affect by the economic environment as this is something most people will not do without due to the its significant importance.

Royal Tombstones has three factories around SA to service our retail franchises. The retail franchise owners’ operations will basically entail the running of the retail shop in their specific area selling tombstones.

How many existing franchisees are there in the group and for how long have they been operating?
There are 3 factories based in strategic positions in order to service the market efficiently. Areas of factories are KZN, Gauteng and Western Cape.

In which provinces/ areas are the existing franchisees located in?
Nationally

How does the business operate on a daily basis?
The retail shop operates Monday to Saturday and is run by a shop manager who deals with clients queries and orders.

How are the clients attracted to the business?
Position of shop is important as the higher the foot traffic the more clients the shop attracts. We also use ladies on the streets handing out flyers and calling on local funeral parlours to view our shop. There is also the national online marketing which then directs all leads to the different retail franchises.

What Advertising/Marketing is carried out?
Social media networks
Newspaper
Flyer campaign

Does the business have any contract work?
In different areas retail shops can get contact work through the many funeral parlours who will use the product.

What competition exists?
As compared to other industries the tombstone manufacturing competition is not that great as our product is unique and different to granite.

What are the seasonal trends?
Tombstones are all year round as well as the policies

How is income derived?
Selling of tombstones and funeral policies.

How does the franchise operate on a daily basis?
You operate through your retail shop which in most cases are managed by your shop sales lady. You can also employ another person to call on funeral parlours.

Does the Head Office assist in securing contracts (if applicable) or is it up to the individual franchisee's to do this?
Head Office on securing national deals will pass the sales in the franchise area applicable.
Franchises can also on their own accord secure local contracts in their areas.

What advertising and marketing is undertaken on a group basis and what is the individual franchisee expected to do?
Social Media campaigns that are run by the professional in the industry. Newspapers. Each franchise can tailor the marketing for their own franchise area as they see fit.

Detailed financial information
Please see below

What is the total staff complement?
2

Do any receive special perks or incentives?
Bonus incentives of sales targets

How involved is the Owner in running the business?
Not full time

What are the trading hours?
8am – 16h30 week days
8am – 13h00 Saturdays

What is the square meters of the business?
40 - 80 sqm

Do you require a licence?
No

Are any items not included in the sale?
All set up material and furniture

What is their overall condition?
New

Do any require repairing?
No

Strengths?
Unique unrivaled product. Market size.

Weaknesses?
Finding the right staff member.

Opportunities?
This market is massive and ever growing.

Threats?
If traditions change

What is the reason for the sale?
To grow market share nationally.

Why is this a good business?
Death is a certainty and due to traditions tombstones are essential part of a burial.
Not affected by the economic environment.

What is the price plus stock and the profit?
R550 000 with a 50% return on each tombstone sold

How are Projected turnovers and profits calculated?
The company's outlets have been running for several years and provided excellent data to project future profits for franchisees.

INCOME
The average sale price is R12 500 per tombstone and a shop sells on average 10 tombstones per month. The Gross Profit is 50% of the sale = R62 500

EXPENSES
Average monthly costs to run a store will be Advertising R3000, Bank Charges R350, Cleaning R450, Fitment R2200, Rent R12000, Royalties (R3750), Stationary R500, Telephone R950, Wages R9000. Please note these are estimates.

NET PROFIT
Average monthly net profit is R30 300

What is the Franchise joining Fee?
R550 000

What is the monthly royalty, management and marketing fees? Are these fees based on turnover or a flat rate?
R550k franchise - monthly fixed royalty of R3 750

What extra marketing and advertising should a franchise budget for?
Royal Tombstones Head Office runs advertising on a national level through google ads, Facebook and twitter. This is a function that is outsourced to professional suppliers who are experts in their fields and specifically how to derive success from these marketing tools. All relevant leads are sent to the retail franchisees.

What assets are included in the purchase price?
1. Computer
2. Printer Fax Machine combo
3. Main Chair x 1
4. Standard Chairs x 2
5. Desk
6. Stationery
7. Printed invoice books (4)
8. Printed quotation books (4)
9. Business cards (100)
10. Catalogues (10)
11. Flyers (5000)
12. TV Screen with flash disc for displaying all tombstones
13. Signage for shop windows (2)
14. Signage for main sign outside
15. Shop camera to monitor
16. Branded uniform (3 full sets)
17. Showroom tombstone samples (7)
18. Astro turf as decor
19. First 10 tombstones sold free

Is the franchisor supplying all assets or can the franchisee source these items himself?
Everything to be supplied by the Franchisor. However, the franchisee will need to source a retail shop in the area they want to trade in which needs to be no smaller than 40 square metres. They will also need to be situated near the busy sections of town with a lot of foot traffic. The Franchisor can assist in identifying the best areas.

Is stock supplied with the initial franchise setup (if applicable?)
Yes, the initial 10 tombstones are supplied FREE of charge.

Will stock purchases be solely from franchisor in the future or can the franchisee pruchase from other suppliers?
Stock purchased solely from franchisor.

How many staff members are required to successfully operate the franchise?
The Franchisee will only require one staff member and can run a franchise store as a sideline business

What training is provided for new franchisees and staff members? Is there a cost associated with this?
The Franchisor will train the new owner on the techniques and methods when selling tombstones and dealing with clients. They will also be trained on the procedures required to run a store and placing of orders. The Franchisor will spend 3 days on site setting up and assisting in the training of the new Franchisee in all aspects of tombstones until such time as they are satisfied with the competence of the Franchisee. Royal Tombstones will also train staff members at its Head Office prior to starting.

Where will training take place and for how long?
Training will take place in Pietermaritzburg prior to setting up or training can be done at the franchisees retail store.

What support and backup is offered to the franchisee?
Franchisor will provide ongoing support and back up.

Does the franchise have to be owner operated?
No can be run by a staff member and only overseen by the franchisee.

What type of premises do a new franchisee require to operate the franchise?
It must be a retail store of between 40 – 80sqm in an area with high foot traffic.

Can the franchise be operated from home?
No

Will the franchisor assist in identifying or acquiring premises and will assistance be provided with negotiating the lease on behalf of the franchisee?
Franchisor will help in identifying the right store.

How many franchises will be allocated to each Area/ Province?
Currently there are 90 franchises nationally, with the aim to grow to 200.

Will upgrades to the premises be required and if so how often will this occur?
Most retail shops are adequate as is however one would need to paint a feature wall with franchise colour which the franchisor will assist. Flooring around stones franchisor will supply astro turf.

What skills and background is the franchisor looking for in a prospective franchisee?
No skills per say is necessary except for being motivated and hungry to succeed.

Is there any industry regulations or licenses needed to operate the franchise?
No

Strengths?
Unique unrivaled product.

Weaknesses?
Finding the right staff member.

Opportunities?
This market is massive and ever growing

Threats?
If traditions change

What is the full purchase price of the franchise (incl VAT)?
R 550 000

What is included in the purchase price and breakdown of various costs?
Information available to approved applicants

Does the franchisor offer finance?
No

Do any of the Bank or Financial service providers recognises this franchise and will they offer any form of finance?
No

How many months working capital will the franchisee require?
3 months

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AGENCY DETAILS

Aldes Prestige

2 members
11 mandates
KwaZulu-Natal , Hillcrest
2 Old Main Road, the Brook Block B, Suite3 , Gillitts.
Hillcrest
4016

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