Hope with franchise funding

Published by www.smallbusinessconnect.co.za  on 17 July 2015

With the National Association of Automobile Manufacturers of South Africa having recently revealed that car sales reached an all-time high of 42 915 for cars sold during September last year, things are on the up for the automotive sector.

Now thanks to a partnership between international onsite cosmetic repair franchise business Renew My Car and The Hope Factory, black entrepreneurs based in Johannesburg and Port Elizabeth have an opportunity to cash in on the boom, with each receiving a startup franchise kit worth R50 000.

So far the organisation has sponsored 11 of the Renew My Car franchisees with franchise kits, which comprise technical training in scratch repair, brush touching, headlight lens restoration, valet and shampoo technique, aircon disinfectant and spray-on paint protection.

Renew My Car founder Henk van der Walt says the idea for his business came about after the realisation that many motorists are reluctant to take their cars to panel beaters or spray painters to attend to small cosmetic damage.

A qualified spray painter trainer and assessor, Van der Walt, started the business with his wife Vicky after immigrating to Australia in 1996. The franchise, which was launched in 2013 in South Africa, provides services such as scratch repairs, stone chip repairs, valets, paint protection and restoration of headlights at the car owner's home or work location.

There are currently 25 franchisees in the country. Bringing the franchise to South Africa was an obvious choice for Van der Walt. “The Australian economy is the envy of the world. In Australia, almost 50% of companies employ 19 people or less. The unemployment rate is below 5%,” says Van der Walt. He says the franchise is a more attractive and profitable alternative than the traditional brick-and-mortar auto repair option.

“Owning a Renew My Car franchise does not burden the franchisee with all the overhead costs such as rent, rates and taxes, building maintenance, landscaping and security,” he says. While franchisees guarantee to offer motorists repairs of the same durability and standard as those offered by conventional panel beaters, clients won't have to wait lengthy periods while the car is being repaired.

The cost of a Renew My Car franchise is R75 000 and there is no franchise fee. Van der Walt says franchisees will only have to pay for the marketing and technical and administrative support supplied by the Renew My Car support office in Alberton North. In addition franchisees will receive access to new technology products from 3M and Plascon Paints that have undergone stringent testing in in the Middle East, Australia and South Africa.

Thulani Hlatshwayo, a mentor specialising in franchising at The Hope Factory, says the organisation has taken on itself to sponsor startup franchise kits for franchisees and will also assist franchisees to source customers, negotiate contracts and register the business.

She says The Hope Factory will only fund franchisees based in Johannesburg and Port Elizabeth with the kits, as this is where the organisation has offices. To qualify for the R50 000 franchise fee franchisees must have experience running a business and have their own reliable transport.

For more information on the Renew My Car franchise model contact Van der Walt on 084 393 4447