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Construction Franchises

With all the business opportunities available, why ponder?
Trust South Africa’s franchisor of the year – as appointed by the Franchise Association of South Africa.
Benefit from our existing, solid infrastructure and national client base for a franchise cost of R950 000.

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Franchise Headline

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Your Questions
  • What is the franchise cost?
    The franchise purchase cost is R950 000 excluding VAT (R1 083 000 including VAT), which is an upfront, non-refundable fee. Monthly fees include a royalty of R5 000 (excluding VAT) or 4.5% of the project value (whichever is greater). Marketing fees are calculated at 3% royalty on each project, plus 2% on all projects sourced and secured for you by Silverline Group.
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  • Are there any additional setup costs?
    Optional setup costs include general office-related costs like rent, insurance and salaries – which can be discussed and negotiated with the franchisor.
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  • What are the returns?
    You can expect a profit margin of 12% to 20%, depending on how you manage the business and whether you contribute to securing projects (not solely relying on Silverline Group to secure projects). Like any business owner, you are responsible for the success of your business – within the supporting infrastructure of the established Silverline Group.
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  • What other income stream opportunities are offered?
    We offer a number of additional income stream opportunities. All materials purchased from our suppliers can be sold by you to other contractors, developers or builders. Light steel trusses, ceilings and partitioning offer huge side-line business opportunities as well as the building and painting of roofs.
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  • Can I exit?
    Yes, you are naturally protected by the CPA (Consumer Protection Act) – especially Section 7 (2) (a): “A Franchisee may cancel a franchise agreement without cost or penalty within 10 business days after signing such agreement, by giving written notice to the franchisor.”
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  • Can I sell my franchise?
    Yes, you can sell your business at any time and Silverline Group will support you in the process. Silverline Group's Construction Franchises are in high demand and we usually have potential franchisees waiting to buy a business.
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  • How much will I receive when I sell my franchise?
    The price you receive for your business when you sell it, will be directly related to what you've put into your business during the time you've managed it. The standard formula is stock (at cost value) + plant & equipment (at depreciated cost value) + goodwill (calculated at a minimum of three times your last year's annual net profit after tax). For example: If your stock is R200 000, your plant and equipment is R300 000, and your goodwill is calculated at R2 million x 3, then the total value of your business would be R6.5 million.
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  • Do I need any construction or industry experience to become a franchisee?
    Yes, you need to be a builder with minimum three years' experience. Construction experience would be very beneficial, although most of the construction work will be subcontracted. Most importantly, you need to have good business skills and an entrepreneurial spirit.
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  • Do I need to be registered with any external association / company?
    As the franchisor, Silverline Group is registered and compliant with all the required authorities. However, all franchisees also need to be NHBRC, SASFA and BBBEE registered. We will assist you with the BBBEE registration, which costs R600 and takes 4-6 days to complete.
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  • Do I need an office?
    It is always advisable to uphold a professional image. Having an office will greatly contribute towards extending the Silverline Group brand, which in return will secure more business.
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  • Do I need staff?
    We advise you to have a small staff compliment, as salaries usually equal a high percentage of monthly expenses and have a direct impact on cash flow. Most of the construction work is done by subcontractors on a supply-and-fit basis, so a small team consisting of yourself, an admin assistant, a marketing person and a project manager (on a per project basis) would be sufficient.
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  • Am I responsible for any marketing?
    Silverline Group conducts extensive, national marketing campaigns to secure projects. However, you are advised to source projects on your own. Depending on your contacts and networking, sourcing projects might involve some marketing. We assist you in developing marketing material suitable to your needs.
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  • Is the territory exclusive?
    No, you purchase a franchise in a non-exclusive territory. The territory refers to the area in which you are established and where your office is located (where you operate from). You are allowed to work wherever you secure projects. Should you not be able (for financial, logistical or resource reasons) to execute the work, you can refer the project (or some of the responsibilities) to another franchisee, who will pay you a referral fee or act as your subcontractor on the project.
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  • Where is material purchased from?
    Material is purchased directly from Silverline Group's approved suppliers, as well as from us directly. Our network of accredited, preferred suppliers and professionals offer products and services at better rates than normal contractors. This way we secure cost-effective building expenses.
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  • Do you provide training?
    Yes, we provide on-going training. Our training seminars are conducted every third month and onsite training is given with your frst few projects. We also assist and train you in terms of communication with your first few clients (costing, quotations, deal negotiations, etc.). We also offer an annual national conference. Our quarterly newsletter and weekly e-mails keep franchisees updated on corporate progress.
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  • How does this franchise opportunity compare to other franchise opportunities?
    Silverline Group won Franchisor of the Year for 2014 – with this franchise opportunity. Silverline Group has extensive industry experience, solid infrastructure and is the market leader in light steel frame construction on the continent.
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