During November 2015, Shoprite Checkers (Pty) Ltd’s franchise division “OK Franchise” entered into a joint venture agreement with the Small Enterprise Finance Agency “SEFA” whereby both parties will work together to empower black South Africans to own their own franchise business. OK Franchise will mentor and provide training for the entrepreneur and make available its expertise and pricing structures for stock. SEFA will be making funds available, to a maximum of R 5 000 000,00 per SME Business in accordance with the qualifying criteria below.
Under a previous agreement Shoprite Checkers, with the assistance of SEFA managed to establish three successful franchise businesses resulting in creating permanent employment for 107 people and meeting community demands for convenience shopping at affordable prices. This year another franchise business was established under the new agreement creating 34 additional permanent jobs.
This agreement provide for the purchase of existing retail franchise businesses, establishing new and/or upgrading existing retail businesses under the brands of OK Foods, OK Mini Mark and OK Express.
Qualifying criteria and vision – To fund black franchisees wanting to participate in the retail space as per the opportunities created by OK Franchise.
- South African citizen with SA ID.
- Have the necessary contractual capacity.
- The Franchisees must have a fixed permanent address.
- 51% or more of the company must be Black-owned and held by South African citizens.
- All franchises must be operated within South Africa.
- Have a business proposal or business plan motivating the franchise and have experience in retail.
- Franchisees may be required to contribute but not necessary an obligation.
- Credit record – If a judgement, notice, and default is issued against the applicant, a letter or document to prove that account is settled must be provided.
- Partial or no contribution towards financing of the franchise. This will depend on the Steering Committee assessment.
- The Franchisee must be owner managed and be at the business at premises.
- Meeting some of the developmental targets of sefa (either youth, women, disability, rural or semi-rural).
- Some retail industry experience or have the potential to become a Franchisee through training and mentoring.
- A competitor and local industry analysis report for the franchise identified.
Prospective Franchisees can visit our website www.okfd.com.