If you’re looking to get into business but need a quick success business, then you need to get into franchising. Franchises are great because they come with a blueprint of how to turn your business into a success. One of the most popular franchises in recent times is Pedros Chicken.
Pedros Chicken opened its first store in 2018. Since then, the company has opened over 140 stores in 5 years. This makes Pedros a great franchising option for those looking to leverage a popular and growing brand for business.
For those looking to get into franchising, Pedros is a great choice. The company has a competitive edge and is popular because of its low pricing compared to its direct competitor Nando’s.
In this article, we look at what it will cost you to purchase and open a Pedros Chicken franchise.
What Do You Need to Acquire a Pedros Chicken Franchise?
Purchasing a Pedros Chicken franchise will cost you between R 2,5 million to R 4,5 million. The company has two franchising options mainly: Standalone stores and drive-thru stores.
A standalone store will cost you between R 2,5 million to R 3,5 million (excluding VAT). The standalone store needs to be 120 m² to 250 m² in size. A drive-thru franchise will cost you between R 3,5 million to R 4,5 million. The drive-thru store needs to be 175 m² to 300 m².
Additional capital required:
R 2 875 application fee (non-refundable).
R 125 000 franchise joining fee (to be paid once the lease agreement is signed).
R 655 000 operating costs (landlord deposits, rental, training disbursement, opening stock and basic equipment).
R160 000 in design and project management fees and legal costs (payable once the lease agreement is signed).
Note: Pedros requires that you have R 2 million unencumbered funds before starting the application process. Also, you will need to pay a 5% royalty fee and a 2% marketing fee monthly.
How to Apply for a Pedros Chicken Franchise?
When applying for a Pedros franchise, you need to know what the requirements are.
According to the Pedros website, these are the requirements you must meet before joining:
- You need to have relevant experience in the fast-food industry, FMCG, QSR industries. If you do not have any experience, Pedros requires you to bring on board an operating partner who has experience.
- You need to be hands-on and full-time in the business operations.
- If there are two or more partners, you need to submit supporting documents for each partner.
- You will need to pay the R 2 875 application fee.
- Have R2 million in unencumbered funds (you will need to submit a bank statement to prove so).
The application form can be found online on the Pedros website. The following information will be required from you:
- Your personal details.
- A detailed summary of your fast-food experience.
- A detailed summary of your business experience.
- How much cash you have for store rollouts.
- If you have previously owned or operated a franchise brand.
- If your current residential property is a rental, or how long you have rented stayed there.
- Which areas you would like to open your Pedros franchise (at least 3 locations).
- When you will be able to start training.
- A completed statement of assets and liabilities .
- Two business references and two character references.
- A non-disclosure agreement, credit check consent form, your ID, your CV, and account statements.
Finding Your Pedros Store Location
For franchising, Pedros requires that each applicant identify their preferred store location. Once you have found your preferred location (you need at least 3 options), the Pedros team will assess the location. All locations are subject to approval from the Pedros team.
If you do not have a preferred location, the Pedros team can find one for you. The company has its own recognised sites which are then awarded on a tender basis.
If your site is approved, you will be able to then open your Pedros store in that location.
The last part of getting your Pedros franchise is to see if there are any funding solutions which can help you with your purchase.
Franchise Funding for Your Pedros Store
You can approach a range of lenders to help you fund your purchase. Some of the places where you can get funding include:
Traditional Banks: A lot of the local banks have a franchise offering. When applying for these loans ensure that your credit score is good, you have a completed business plan, and you are able to pay back the loan.
Masisizane Fund: The Old Mutual Masisizane Fund provides funding for SMEs. You can apply to this fund for your franchise purchase.
Note: Pedros does not approve applications backed by government funding, as this is not in alignment with their franchising process.
Now that you have all this information, you can go ahead and apply for your Pedros franchise. Get your documents and capital in order and you can become part of the Pedros family soon!