Famous Bands and IDC Sign R25.5m Franchisee Financ
FBR
FBR
Famous Bands and IDC Sign R25.5m Franchisee Financing Agreement
FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR & ISIN code: ZAE000053328
("Famous Brands" or "the company")
VOLUNTARY ANNOUNCEMENT - FAMOUS BRANDS AND IDC SIGN R25.5m FRANCHISEE
FINANCING AGREEMENT
The Industrial Development Corporation of South Africa (IDC) has undertaken
to provide a wholesale loan facility of R25.5 million to potential
franchisees of Famous Brands for the establishment of Wimpy, Steers,
Debonairs Pizza and FishAways franchised stores under their Pro SME Job
Scheme.
Loans ranging from R500 000 up to a maximum of R1.5 million will be granted
to approved candidates. Loan funding is for furniture, fittings, equipment
and working capital. The repayment terms are extremely favourable.
Prospective candidates will be pre-screened by the group via the company`s
standard franchisee selection process, whereafter final selection will be
made by the IDC. Consequently, Famous Brands is not liable to stand surety
for the loans approved to franchisees by the IDC.
Kevin Hedderwick, Chief Operating Officer of Famous Brands says: "The
facility we have put in place underpins our Enterprise Development goal
whereby we intend to make our brands more easily accessible to franchisees
of colour. Currently comprising 15% of our franchise network - the short
term goal is to increase that representation to 20%. This joint initiative
with the IDC will go a long way towards providing previously disadvantaged
candidates with access to a premium brand," he adds.
Katinka Schumann-Bester, IDC Executive Vice-President for Services, says:
"We view the facility as an intervention from us to ease the entry into the
franchising sector by black SMEs. We are committed to partner with Famous
Brands to advance entrepreneurial development and extend their network in
the townships. The facility is part of our Leadership in Development
strategy to create jobs through our funding. Significantly, the loan
facility will be supported by a mentorship programme, managed by the group,
to enhance the success of new franchisees."
Hedderwick concludes: "The IDC`s preparedness in making this loan facility
available is evidence of their comfort in our processes and brands - the
strength of our franchise system, the aspirational value of our brands and
the appeal they hold for potential franchisees."
The franchise industry has been identified by government as an important
growth area in supporting its strategy to establish a sustainable small
business sector in South Africa.
Midrand
11 December 2006
Sponsor
Java Capital (Proprietary) Limited
Date: 11/12/2006 10:00:03 Produced by the JSE SENS Department.
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