What is a PMKVY Franchise

Franchise Inquiry

registered member of The

Franchise Association of
South Africa (FASA)

Thank you for your inquiry, we appreciate your interest in the prospect of acquiring a
Col’Cacchio pizzeria franchise.

This letter serves to assist you in outlining the process to be followed while investigating and
applying for a Col’Cacchio pizzeria franchise, as well as highlighting the financial
commitment and availability of funds required to complete the process.

The total estimated investment required to set-up a Col’Cacchio pizzeria restaurant is

approximately R 3,600,000.00 including Vat * and is inclusive of the franchise joining fee
and staff training prior to opening of the store.

* This amount may vary, dependent on the location and size of the site, and the final
conditions of the lease agreement.

Various financial institutions and Col’Cacchio Holdings (Pty) Ltd generally require that the
franchisee contribute 50% of their own unencumbered capital to the total setup cost of the
business - This amount has to be existing cash reserves and cannot be borrowed against a
bond, credit card or any other type of finance

Franchisee selection will be determined on a number of criteria, including the following:

1. Our model calls for an owner operated business, or alternative equity partner of no
less the 25% shareholding to operate the business on a day-to-day basis.

2. Prospective franchisees must complete the Col’Cacchio pizzeria role-fit assessment.

3. Franchisees must have at least 50% unencumbered capital.

4. Operator, management and staff will need to train in a store (to be determined) for a
period of two months prior to opening of the new restaurant.

Once a site has been selected for a new franchisee, the following fees, deposits and
Progress payments will need to be made as detailed below prior to any work commencing
on site.

Please note that all outstanding money needs to be paid, in full, prior to the store opening.
Cash flow requirements are as per the following (Inclusive of Vat):

Col’Cacchio Holdings (Pty) R142,500.00 (Total amount) To be paid on signature of the

Ltd (Franchise License Fee) Franchise Agreement

Plans R38,000.00 (Total amount) To be paid approximately

three months before beneficial occupation of

Training fee R60,000.00 (Approximate total) To be paid at start of

training, approximately two months before
store completion.

Project Co-Ordination R50,000.00 (Deposit) To be paid prior to construction,

approximately one month before)

Building, plaster & tiling R150,000.00 (deposit) To be paid prior to construction,

approximately one month before)

Equipment R300,000.00 (deposit) To be paid prior to construction,

approximately one month before)

Furniture, shopfitting, R250,000.00 (deposit) To be paid prior to construction,

signage & ceilings approximately one month before)

Plumbing R60,000.00 (deposit) To be paid prior to construction,

approximately one month before)

Electrician R75,000.00 (deposit) To be paid prior to construction,

approximately one month before)

Extraction R40,000.00 (deposit) To be paid prior to construction,

approximately one month before)

Total deposits R1,165,500.00

Interim payment of R800,000.00 Two weeks into building of store (This

includes progress payment to certain
contractors listed above)

Interim payment of R800,000.00 Four weeks into building of store (This

includes progress payment to certain
contractors listed above)

Balance payable Payable Prior to Opening day

Please note that any landlord allowance and Vat refunds may only be received some
time after opening of the store.

Essential characteristics required to become a successful Col’Cacchio pizzeria

franchisee are:

• Good leadership & practical management skills

• Excellence orientation
• High levels of attention to detail & problem solving skills
• Customer service & quality orientation
• Franchise Compliance.
• Positive outlook with at least some financial and business acumen.
• Resilience and a don't quit attitude.
• Drive & Motivation - Seeing your business as “your business” and not just a job
• Understanding that what you put in is directly related to what you get out

Should you be interested in pursuing an application to open a Col’Cacchio pizzeria,

the following provides a brief outline of the application process:

Stage 1 - Initial Approach

You will have received this letter after having made an inquiry either telephonically, via
email, online via our website or in person.

1. Once we have made contact with you we will send you a Franchise application form,
including credit check & prospectus containing further details regarding a Col’Cacchio
pizzeria franchise. Please complete and return the application form to the corporate
head office of Col’Cacchio Holdings (Pty) Ltd.
1. Via email to [email protected]
2. Hand deliver to 2nd Floor The Spearhead, 42 Hans Strijdom Ave, The
Foreshore, Cape Town, or
3. Post to PO Box 847, Greenpoint, Cape Town 8051

Stage 2 - Commitment

2. Once a signed and completed franchise application form is received a franchise

development representative will review the application and present it to the franchise
Licensing Committee.
3. Our representative will follow up with potential candidates with feedback from the
committee. An appointment will be setup with qualified candidates to visit the
corporate office of Col’Cacchio Holdings (Pty) Ltd and to meet with members of our
franchisee selection panel.
4. If this meeting is successful we will require you to sign a Non Disclosure Agreement
(NDA) and pay a fully refundable commitment fee of R2,500 (Two thousand five
hundred rand). This fee will be fully refunded should your application not be
successful or you change your mind. If you are successful in your application and sign
up as a franchisee we will discount your joining fee by this amount.
5. Once the signed NDA has been received our attorneys will be instructed to forward
you a comprehensive disclosure document and a copy of our franchise agreement,
which will give you a more detailed look at our business and hopefully answer most
of your questions regarding acquiring a franchise.
6. We will also require you to present a compehensive business plan as part of yours
application and assessment as a franchisee. We will provide you with an outline of a
suitable business plan.

Stage 3 - assessment

7. We will schedule a follow-up strategy and review meeting with you to discuss any
further questions that you may have after perusing the disclosure document and
franchise agreement. It is advisable that you consider looking over this document
very carefully, and to get clarification from a qualified attorney on anything in the
contract that is unclear before signing.
8. This meeting will also give you the opportunity to discuss details of your business
plan relating to specifics of our business or a particular area or site which may need
9. As part of your assessment we require you to complete a psychometric role-fit
assessment prior to any formal commitment being made
10. The final step of our assessment process will involve an interview with our franchisee
Selection panel and presentation of your final business plan.

Stage 4 - formalization

11. Should your application and final assessment be successful, Col’Cacchio Holdings
will require that you liaise directly with our attorneys to facilitate the signing of the
Franchise agreement and relevant documentation, the cost of which shall be borne
by the applicant.
12. * Please note that you have a 14 day cooling off period prior to signing and 10
Business days post signing of the franchise agreement.
13. It must be noted that we may not always have a suitable site available immediately at
the time of signature of the franchise agreement but there may be one in the pipeline.
14. Should a suitable site be available, and once the signed Franchise Agreement has
been received along with payment of the Franchise License fee, the new franchisee
will be presented with either an offer to lease or a final lease agreement on a site
approved by Col’Cacchio Holdings (Pty) Ltd and the franchisee.
15. The Franchisee will be required to sign the offer to lease or the lease agreement with
the landlord’s agent, once the franchisee’s (tenant) attorney has had an opportunity
to review the relevant documentation.
16. Col’Cacchio pizzeria design and construction department is responsible for the
design and project management of the new store. The franchisee will be involved
throughout the process and will work with our team on approval of all costs and
contractors responsible for the building of the store.
17. The Franchisee will need to appoint a liquor license consultant to submit the liquor
license application. Col’Cacchio Holdings can assist with recommendations.
18. Col’Cacchio Holdings (Pty) Ltd will assist the franchisee during this time with all
administration requirements for the opening of customer accounts with our approved
and the securing of merchant banking facilities, telephone lines etc. suppliers
19. The approved franchisee will need to attend a compulsory two month full-time
training programs in one of our approved training stores with all their new staff. Full
commitment to this training program is non negotiable and essential to put the
new business on the critical path to success.
20. Training costs to be paid to training store at the start of training.
21. Any staff accommodation costs (if necessary), transport costs, staff meals and staff
wages during this period are for the franchisees account.
22. Approximate meal costs during training are as follows:
• Management - 50% of the menu price or maximum R 400.00 per person per week
• All other staff - R20.00 per day
Payment of the above will be due to the training store at the end of each week.
23. When the new restaurant is complete, Col’Cacchio Holdings (Pty) Ltd will provide
on-site assistance to prepare and open the store, and help implement the operating
systems learned during training. Our head office staff will work alongside the operator
and the newly trained team full-time for two to four weeks from the date of opening.

Congratulations! You're now in business and are active member of the Col’Cacchio pizzeria

We trust that you will find the above points and attached document helpful and look forward
to hearing from you soon.

Yours sincerely

Col’Cacchio pizzeria