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Frequently Asked Questions

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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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What does the Silverline Group do?
Silverline Group is a construction company, offering the entire spectrum of building services – from architectural support to detailed shop drawings, from quantity surveying to project management and lots more. We build green buildings from light steel framing, a revolutionary building process that is environmentally friendly, delivers fast results, offers bigger internal space than brick-and-mortar buildings, and is more efficient. We operate on a national level in South Africa, with operations in Africa, the Caribbean and even Australia. We offer franchise opportunities to builders and businessmen. For more information on our franchise offering, check out our franchise website.
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Where is the Silverline Group headquarters? And other offices?
Our head office is located in Somerset West, Cape Town, with a regional office in George on the Garden Route. Our franchisees operate all over the country – from KwaZulu Natal to Gauteng, North West to the Eastern Cape, from the Garden Route to the Cape Peninsula.
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What are the prospects for the Light Steel Frame industry in general?
It is one of the most exciting developments in steel and construction in recent times. It has been perfected over the last 50 years and has become the preferred way of building in many countries like the USA, Canada, the UK, Australia and New Zeeland. Although it has only been recently introduced to South Africa, it is growing at an annual rate of 25%. Astounding, isn’t it? We believe the scope for the future is almost without limit.
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What makes Light Steel Frame construction different from traditional building methods?
Compared to traditional methods, LSF construction delivers structures of a higher quality and with less wastage – quicker and more cost-effective than brick-and-mortar. What’s more, it is done to exact building specifications, the material is fully customisable to the client’s requirements and the architectural style. Furthermore, steel is 100% recyclable and currently the most recycled product in the world. It is green, reducing carbon footprints by up to 80% and allows for future-orientated construction practices. All-in-all a much better option than traditional building methods.
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What are your core values?
We build our business on four pillars: Relationships, Efficiency, Quality and Standards with a strong corporate emphasis on Culture, Approval, Quality and Governance.
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What services do you offer?
We offer a wide range of construction services: Architectural Support, Software Development, Detailed Shop Drawing Design, Product Development, Structural Engineering, Marketing & Sales, Quantity Surveying, Property Development, Distribution, Commercial Business Brokerage, Research, Exports, and Project Management. For more details, refer to our Services Page.
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What is Light Steel Frame construction?
Light Steel Frame construction is an alternative building system, recently introduced to South Africa, used to build steel frame homes and other structures. Light Steel Frame construction offers a wide range of benefits that beat traditional brick-and-mortar buildings – it is greener, more efficient, quicker to erect and more durable.
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I’d like to contract the Silverline Group for a project – what do I do?
You can contact our head office or your closest franchise. We’ll be happy to answer any questions you might have and get your project going in next to no time. And it will be done faster than you ever imagined. Refer to our Contact Page for details of our Head Office or a Franchisee in your area.
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What are your future plans?
We are extremely excited in sharing our future as a rapidly growing company in a stable, flourishing industry with builders and entrepreneurs through our franchise offerings. Our Construction Franchises deliver consistent work across the country and we aim to build on this solid foundation, taking Silverline Group to the rest of Africa and the world.
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I’m interested in becoming a Silverline Group franchisee. Tell me more?
We offer two franchise options - both costing around R1 million. The Construction Franchise is a hands-on business for experienced builders, and the term is ten years. The Business Franchise is for entrepreneurs who want to capitalise on this fast growing industry, but without any actual involvement. The returns are 19.1% and the term is for five years.
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In a nutshell, how does your company structure work?
We offer a turn-key service to our clients – from conception to hand-over. The company is structured into three divisions – Services, Products and Franchises – that cater for all possible needs and requirements. For more details, have a look at our Company Structure.
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How sustainable is Light Steel Frame construction, considering it is relatively new to the South African market?
We believe it is exceptionally sustainable. Between 2012 and 2014 Silverline Group experienced growth of 500% in an industry segment that is predicted to grow by 25% per year. On a global scale, 53% of all construction activity is in emerging markets and Silverline Group is ideally positioned to take full advantage of these facts.
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What about Social Responsibility?
At the core, Light Steel Frame construction is green, leaving less of an impact on our world. We are also a prolific job creator – we give entrepreneurs invaluable skills development through our Franchise Training Academy. We also offer internships to people with a passion for construction-related services. We also provide a more affordable alternative to traditional low-cost housing, which would help to uplift more disadvantaged communities.
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What are the eco-friendly benefits of Light Steel Framing?
There are many benefits – the water used in the steel making process is recycled and returned, often cleaner than when it was taken from the source; every piece of steel contains recycled content (it can be recycled again and again into new, high quality products); and more steel is recycled than aluminium, glass and paper combined. A typical house framed in steel, requires the equivalent of about six, scrapped automobiles while a similar house framed in wood requires lumber from 40 to 50 trees.
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How do I contact Silverline Group?
You can contact us via e-mail, phone, fax or through our website. For more details, visit our Contact Page.
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What are the core benefits of Light Steel Frame construction?
There are many benefits to Light Steel Frame construction. For architects, the most notable benefit would be the accuracy of the system, with tolerances well below the norm of brick-and-mortar buildings. For details about the other benefits, like sustainability, efficiency, eco-friendliness and speed of construction, refer to our Overview Page.
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How much design freedom is possible with Light Steel Frame construction?
Almost unlimited. Light Steel Framing is a versatile building system, creating creative freedom when designing structures. The high accuracy and low tolerance specifications of the product make it an ideal way to take your designs to the next level.
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Can alterations be made to the frame on site?
Of course. But due to the accuracy of Light Steel Framing, alterations due to mistakes or misfits would hardly be an issue. The Light Steel Frame comes predesigned and pre-packed and the erection of the structure is done with minimal wastage and mistakes. Most new systems allow quick and easy disassembly and reconstruction.
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Can I extend a Light Steel Frame home at a later date?
Of course. And it will be easier to alter than brick-and-mortar structures. Because Light Steel Framing has modular aspects, alterations and renovations to LSF buildings are simple and easy when compared to the mess and effort when having to alter a brick or concrete structure.
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Do Light Steel Frame houses look different?
Not at all. Put side by side, a light steel frame house will not look any different than traditional buildings. In fact, it will be straighter, neater with a smaller footprint – enlarging the available floor space by 4%.
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Do Light Steel Frame houses cost more?
No. Overall construction is completed in half the time and at lower cost. They are more energy and heat efficient and require less maintenance, decreasing long term expenses.
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Which regulatory bodies are Silverline Group associated with?
Silverline Group is associated with all the necessary regulatory bodies and boards, including the Master Builders Association, the Green Building Council of South Africa, the National Home Builders Registration Council, the Southern African Light Frame Steel Building Association, the South African Bureau of Standards, and the Franchise Association of South Africa, amongst others. View the complete list.
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Why do people decide to build with LSF?
Steel is a superior product for long term investment – it is light and strong, is termite and borer proof and dimensionally stable. It does not shrink or warp. The durability of Light Steel Framing will ensure integrity and high standard finishes long into the future. Steel is environmentally responsible.
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What support do you offer to Architects?
We have structures in place to educate our handpicked third party architects on the building principles and benefits of light steel framing. We provide support packs to architects that contain all the required information and in conjunction with MiTek Ultra Span Trusses, architects receive superior roof design services. We also do in-house software development, product development, structural engineering, shop drawing design and quantity surveying – a comprehensive offering that ensures results of international standards.
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What are the eco-friendly benefits of Light Steel Framing?
There are many benefits – the water used in the steel making process is recycled and returned, often cleaner than when it was taken from the source; every piece of steel contains recycled content (it can be recycled again and again into new, high quality products); and more steel is recycled than aluminium, glass and paper combined. A typical house framed in steel, requires the equivalent of about six, scrapped automobiles while a similar house framed in wood requires lumber from 40 to 50 trees.
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How cutting-edge is Silverline Group?
In the words of our CEO, Charl van Zyl: “The number of projects completed since our inception has helped us achieve record growth figures, but what we’re most proud of is the fact that we’ve set building industry best practice standards and benchmarks – influencing the future of construction nationally.”
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Who have been some of your biggest clients?
We are proud to be working with some of the biggest companies in South Africa (and the world). We’ve finished many jobs for McDonald’s, KFC, Chevrolet, Spar, Food Lovers’ Market, Burger King, MTN and many more. They are extremely happy with the accuracy and speed of our services as well as the long-term benefits like reduced electricity usage and improved insulation.
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Why would you say Light Steel Framing is better than brick-and-mortar?
In short: It is stronger than brick-and-mortar, it has the highest strength-to-weight ratio of any building material, it lasts for more than 600 years and is dimensionally stable – it does not expand / contract due to moisture, it will not rot, swell, warp, split, crack or creep, it is invulnerable to termites, fungi, mould and other organisms, and is incombustible. These are only a few features worth noting. For a more comprehensive guide to steel, refer to our Product Page.
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In the long term, what would the advantages of Light Steel Framing be for home-owners?
When using Light Steel Framing, the internal space of building increase by 4%, meaning more lettable rental area. It also offers superior insulation, offering savings of up to 40% on electricity. From start to finish, construction is faster than traditional methods, meaning earlier occupation that leads to increased rental income and a reduced interest period on bond accounts.
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Who are your main materials providers?
We have affiliations with three international suppliers: FrameCAD, MiTek and Lafarge. In conjunction with these companies, we deliver superior end results.
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What does the Silverline Group Home Buyers website offer?
On the Silverline Group Home Buyers website you can choose a predesigned home to be built on a site of your choosing. We like to think of it as express residential homes, ordered online to your liking.
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Explain the Home Buyers offering in a nutshell?
The Home Buyers offering from Silverline Group gives our customers the option to select a home from a list of predesigned plans (from the foundation to the roof, with all fittings and specifications included) to be built at a location of their choice. It is easy and simple to use. Even better, the buyer of the house will have no involvement in the approval and building of the house – Silverline Group takes care of everything. No mess, no fuss.
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How are the home options presented?
When choosing your home, you’ll be shown floor plans and 3D architectural images accompanied by a precompiled specification and fixture list – plumbing, cupboards, sanitary ware and electrical fittings. It is a full turnkey package – from start to completion.
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What does the process entail?
After you have selected the plan and fixtures, we do all the rest – we draw up the contracts, get the plans approved with the relevant council, deal with project management, source subcontractors, purchase the materials and manage the quality control. After the initial selection process, your only involvement will be when we hand you the keys to your new home.
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What is included in the price?
The price includes all plans (architectural drawings, plan submission etc.), engineering, and standard construction costs. Note that prices are subject to soil conditions and site levels. Should these be poor or difficult, the price of your home might increase. The costs are based on projects in major metropolitan areas in South Africa and would be higher for sites outside these areas, due to transport and overhead expenses.
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How many plans do you have on offer?
At the moment we have five house plans on offer – from a 150m² house to a double storey 200m² house. In future we plan to extend this offering. You are welcome to view the list of current plans that are on offer.
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Are changes to floor plans accepted?
Unfortunately not – our building plans have been finalised and the costs thereof are included in the price. Should you wish to build a house according to a different design, we’d be happy to quote you through our standard quote system.
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And what about changes to the finishes?
The finishes we have on offer have been secured through our good standing with our suppliers and are excellent value for money. Should you wish to change the finishes, we’d be more than happy to facilitate these changes. Best of all, you’ll only pay the difference in price between the standard fittings and your preferred choices.
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How long does it take until occupation of my chosen house?
We are confident that we’d be able to finish your home in three to five months’ time, depending on the location and the condition of the building site.
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How do I contact Silverline Group?
You can contact us through our various websites, by e-mail, by fax and even by phone. For further details, please refer to our Contact Page.
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Explain more about the Silverline Group as a whole?
Silverline Group is a construction company, offering the entire spectrum of building services – from architectural support to detailed shop drawings, from quantity surveying to project management and lots more. We build green buildings from light steel framing, a revolutionary building process that is environmentally friendly, delivers fast results, offers bigger internal space than brick-and-mortar buildings, and is more efficient. We operate on a national level in South Africa, with operations in Africa, the Caribbean and even Australia. We offer franchise opportunities to builders and businessmen. For more information on our franchise offering, check out our franchise website.
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What is the franchise cost?
The minimum franchise cost is R995 000 excluding VAT (R1 134 300 including VAT). You can increase your initial capital input amount, if agreed by Silverline Group, and your pay-outs will be calculated accordingly.
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Are there any additional setup costs?
No, there are no further financial obligations. The minimum franchise cost of R995 000 includes all registration and admin expenses. If you are not registered for VAT or would like to register a company, we can assist you with the process at an additional fee.
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What are the monthly running costs?
The day-to-day running of the franchise is contracted to Silverline Group. There are no costs involved for you.
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What are the returns?
For the minimum franchise cost of R995 000 excluding VAT (R1 134 300 including VAT), you will receive yearly pay-outs as follows: R200 000 at the end of of the first year as well as at the end of the second year, R400 000 at the end of the third year as well as the fourth year, and R600 000 at the end of the franchise period (end of the fifth year). This equals an amount of R1 800 000, excluding VAT (R2 052 000 including VAT). It can be summarised as a return of 19.1% per year if you are VAT registered (and R15.8% if you are not registered for VAT).
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What if I would like a higher return?
Upon purchase, an increased franchise input amount can be negotiated with Silverline Group. If a higher input amount is agreed to, then the yearly returns will be calculated accordingly.
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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, however, keep in mind that your franchise is only for a five year period. You gain the maximum financial benefit by the end of your franchise agreement.
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Do I need any construction or industry experience to become a franchisee?
No, due to the fact that the operations are contracted to Silverline Group, you, personally, are never directly involved. You thus don’t need any industry experience to qualify as a Silverline Group Business Franchisee.
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Do I need to be registered with any external association / company?
No, Silverline Group secures projects on your behalf. We are registered and compliant with all the required authorities, so you do not need to be.
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Do I need an office and employees?
No, this unique franchise opportunity allows you to receive lucrative returns without binding you to a premises or hassle you with employees, stock, overheads and even office hours.
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Why do I not require any business premise or staff?
This is purely a business arrangement between you and Silverline Group. All actual work is outsourced to Silverline Group, which manages it on your behalf. We have multiple business premises and experienced, dedicated staff.
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Am I involved in or responsible for any marketing?
No, this franchise does not involve any marketing by our franchisees. Silverline Group does extensive national marketing on your behalf. However, you are welcome to let us know of any opportunity you might hear of.
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Will I be kept updated on company progress?
Yes, we distribute a quarterly newsletter. You are also more than welcome to contact us if you have any specific queries.
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How does this franchise opportunity compare to other franchise opportunities?
With a Silverline Group Business Franchise, you sit back and wait for us to earn you money. You are free to spend your time and energy on something else. It is thus much more convenient than a traditional franchise – yet, still in line with franchise regulations. We are registered with FASA (the Franchise Association of South Africa).
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How does this franchise opportunity compare to other investment opportunities?
You earn above average returns with a Silverline Group Business Franchise. If you are VAT registered, you’ll earn 19.1% per year. If you are not VAT registered, you’ll earn 15.8% return. It is a safe, secure way of earning lucrative returns during a short period of only five years.
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How do I know that this is a safe opportunity?
Unlike other business opportunities, where your success highly depends on your communication, marketing and sales efforts, you will receive set returns – backed by our solid infrastructure and remarkable reputation.
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What if I have more questions not covered here?
Our Business Franchise agents are dedicated to this division of our company. They are able to answer all your questions and discuss the Franchise Agreement in detail. You are also advised to contact your attorney or auditor for any legal / accounting specific questions. Your peace of mind is important to us.
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Is Silverline Group Engineering an in-house services?
Yes, it is. We employ more than six staff members in our dedicated engineering office.
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On what does Silverline Group Engineering focus?
Our engineers have specialized in Light Steel Frame construction with a focus on Steel Detailing, Reinforced Concrete, Cold Formed Steel and Hot Rolled Steel.
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Any other specialities?
Our engineers also create detailed engineer’s drawing in 2D and 3D-renderings.
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What does the Silverline Group do?
Silverline Group is a construction company, offering the entire spectrum of building services – from architectural support to detailed shop drawings, from quantity surveying to project management and lots more. We build green buildings from light steel framing, a revolutionary building process that is environmentally friendly, delivers fast results, offers bigger internal space than brick-and-mortar buildings, and is more efficient. We operate on a national level in South Africa, with operations in Africa, the Caribbean and even Australia. We offer franchise opportunities to builders and businessmen. For more information on our franchise offering, check out our Franchise website.
Answer
What are the prospects for the Light Steel Frame industry in general?
It is one of the most exciting developments in steel and construction in recent times. It has been perfected over the last 50 years and has become the preferred way of building in many countries like the USA, Canada, the UK, Australia and New Zeeland. Although it has only been recently introduced to South Africa, it is growing at an annual rate of 25%. Astounding, isn’t it? We believe the scope for the future is almost without limit.
Answer
What makes Light Steel Frame construction different from traditional building methods?
Compared to traditional methods, LSF construction delivers structures of a higher quality and with less wastage – quicker and more cost-effective than brick-and-mortar. What’s more, it is done to exact building specifications, the material is fully customisable to the client’s requirements and the architectural style. Furthermore, steel is 100% recyclable and currently the most recycled product in the world. It is green, reducing carbon footprints by up to 80% and allows for future-orientated construction practices. All-in-all a much better option than traditional building methods.
Answer
What is Light Steel Frame construction?
Light Steel Frame construction is an alternative building system, recently introduced to South Africa, used to build steel frame homes and other structures. Light Steel Frame construction offers a wide range of benefits that beat traditional brick-and-mortar buildings – it is greener, more efficient, quicker to erect and more durable.
Answer
How sustainable is Light Steel Frame construction, considering it is relatively new to the South African market?
We believe it is exceptionally sustainable. Between 2012 and 2014 Silverline Group experienced growth of 500% in an industry segment that is predicted to grow by 25% per year. On a global scale, 53% of all construction activity is in emerging markets and Silverline Group is ideally positioned to take full advantage of these facts.
Answer
How eco-friendly is Light Steel Framing?
There are many benefits – the water used in the steel making process is recycled and returned, often cleaner than when it was taken from the source; every piece of steel contains recycled content (it can be recycled again and again into new, high quality products); and more steel is recycled than aluminium, glass and paper combined. A typical house framed in steel, requires the equivalent of about six, scrapped automobiles while a similar house framed in wood requires lumber from 40 to 50 trees.
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How do I contact Silverline Group Engineering?
You can contact us via e-mail, phone, fax or through our website. For more details, visit our Contact Page.
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