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FAQ’s about owning a MotoLube Franchise
Please note that any information listed can be changed without notice.
This information should prove useful to a prospective franchisee in understanding and evaluating the purchase of a MotoLube Franchise.
Available Modules:-
- MotoLube
- Dent & Mag
- Moto-Wash
What are the Criteria required to become a franchisee?
Each application will be evaluated on individual merit; however the evaluation criteria are as follows:
- Motor service experience, at least 3-5 years.
- An understanding of how franchising works.
- Available capital to setup the business.
- Owners are expected to operate the business themselves.
- A positive attitude and good people skills.
- Agree to undergo psychometric testing.
- Not afraid of long hours and hard work.
What is the cost to setup a MotoLube Service Centre?
The investment required for a MotoLube franchise will vary, depending on the size of the premises available for rental.
There are many variables, in finalizing the cost like:-
- The Landlords contributions.
- Complexity of the site.
- Store design.
- Size of location.
Please note that the above is a guideline and a more accurate figure is provided once all information pertaining to the site is finalized and a site survey is completed.
The store set up costs R150, 000.00 (start up stock or deposit depending on the chosen module) + R850, 000.00 (depending on the chosen module)
What does MotoLube charge as Franchise Fee and royalty?
5 % of turnover per month or minimum of R10 000 per month.
2 % of turnover per month advertising and marketing budget.
How much Money do I need before borrowing?
You must have unencumbered capital of at least 6 months of overheads and costs after franchise fee.
The balance of the franchise package cost can be financed through various lending programs of any bank or financial institution, subject of course, to fulfillment of their usual credit requirements.
Does MotoLube provide a turnkey operation?
MotoLube does provide a turnkey operation. This is administered through our development division. Monies are lodged into a MotoLube trust account and paid out to the development company in stages of the development.
How much money can I make from my business?
The profit potential of one store versus another, prior to opening, is impossible to determine. Store profitability is a function of many variables not the least of which is management. Profitability can fluctuate from market to market, and even store to store within the same marketing area.
Generally as guideline earnings before drawings interest and tax varies between 40% and 70% of turnover. But it must be clearly understood the franchisor provides no guarantees or makes any promises in this regard. Size of the store and trading hours also influence calculations.
It is most important that you read the MotoLube Disclosure Document carefully and familiarize yourself with all obligations of the various parties.
For more information click here!
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