A FAMILIA It has always been the intention of Overland to ensure that we are represented in all provinces. Over the years, independent liquor stores have joined our family, benefiting from our experience of bulk buying power, products and services, thus, creating a national footprint for all Overland Liquor stores. To date, our franchise consists of 358 stores and employing over 1200 people nationwide. Our preferred franchise store, is one that is owner run, ensuring full involvement of the owner, which is a recipe for success leading to profitability in the business and sustainability in the market place. The Overland Liquors is a full member of FASA (Franchising Association of South Africa) which is to the benefit of not only the franchisor, but the franchisee as well, adhering to all consumer protection laws. THE OVERLAND LIQUORS FRANCHISE STRIVES FOR THE FOLLOWING:

To remain and build on being the best liquor franchise in South Africa.

Providing Regional Managers nationwide to support potential franchisees in day-to-day running of their stores, price surveys and category management.

• Overland head office provides national and regional marketing campaigns on a monthly basis of pamphlets to ensure market advantage. Over and above this, Overland Liquor Group advertises in national newspapers, radio and TV.

To ensure that Head Office remains updated on all store figures on a continuous basis, we offer category management to our stores and our suppliers.

We ensure best practice with our suppliers and respective brands.

Opportunities to grow our retail division and also upgrade our franchisees to become wholesalers and redistributors in their respective areas, thus serving all segments in the market.

SOCIAL MEDIA Overland has an active website as well as active Facebook, Twitter and Instagram accounts.

WHO CAN BECOME A FRANCHISE

Existing bottle stores

Retailers who would like a bottle store within their business

Any hard working individual, who has a passion for the liquor trade and meets the Overland requirements.

New stores with a liquor license and premises to operate out of.

HOW MANY STORES DO WE HAVE We presently have 358 stores represented in all provinces. There are 275 Overland stores, 58 Liquor Zone stores and 25 Spot-On stores, with expansion plans to grow this footprint, as well as cross-border representation.

MORE THAN ONE STORE PER AREA We take into consideration, the size of the allocated area and the population of the area when deciding to add an additional store in the area. Careful consideration is given from past and present experience as well as a population study, to determine the viability of an additional Overland store in a given town.

FRANCHISING OF EXISTING STORES When taking on an existing store and turning same into a franchise, we do not expect a total revamp. We only expect the owner to upgrade to the image that conforms to the franchise, with areas such as:

Stores need to be computerised (suitable POS system required);

Stores need to have sufficient refrigeration;

Franchise Name:

We do not change the name of your store as your store is identified within the immediate market under its present name. We only add the brand, such as Overland, Liquor Zone or Spot-On, to the store, thus leaving your store with its own identity while carrying the brand.

When branding is erected, a mock up, which is approved by both the franchisee and franchisor will be erected. No signage gets put up without your consent.

FRANCHISE AGREEMENT

Yes, you do enter into a franchise agreement.

An unique offering of Overland is that we offer our franchise agreement with a 20 day written notice to each party, wherein then Overland or branding will be removed with no further obligations.

Franchise agreement is for 3 years.

Overland, Liquor Zone, Spot-On, Xpress and Mabaleng are registered trademarks and belong to the franchisor, thus, when terminating the agreement, it would be necessary to remove all signage.

Overland Franchise agreement is approved by FASA and applies the Consumer Protection Act and are POPIA compliant.

WHY JOIN THE FRANCHISE

Overnight you become part of a national group, thus getting national status immediately.

You have 358 members to share your ideas with and do joint buying deals with.

Better deals are received from the suppliers – JAB Orders.

Better support is received from suppliers as you have a head office that fights for your representation with all suppliers. More in-store activation from suppliers.

You receive automatic advertising which is national advertising, either by way of leaflet advertising, TV or newspaper advertising. This identifies you as a national account.

With receiving better pricing, we ensure you make better profits.

With having a national identity, it automatically adds value to your business so that should you sell it one day, you would automatically receive further value.

Best prices from all the major suppliers, even if only one case of a brand is ordered;

Participation in the SAB and Coke national deal status;

Additional discounts with all major suppliers;

Assistance with store layout, new licences and merchandising equipment suppliers.

As a franchise member you’ll now be able to compete on par with food chains, thus eliminating the threat of the national chains impacting your market share.

Independents joining Overland never lose their independence, in fact they lose nothing, they can only gain. They still operate exactly as they used to but have numerous additional benefits.

Studies conducted on South African franchises operating in this market have proven the franchise model to be the most successful. The No.1 Liquor outlet currently in the South African retail market has grown to that in a relatively short time as a franchise group of independents.

Rebate structure in place for all stores.

RELATIONSHIP WITH SUPPLIERS Your relationship with suppliers does not change. Present deals are improved. Same representatives will still call on your stores and you will still receive regional deals that are put in place although you are recognised as a national account.

LEGAL ASSISTANCE The franchisor will also offer you legal assistance with specific reference to:

Transfer of liquor licenses,

New liquor applications,

Labour related matters,

Wholesale related matters,

Opening of accounts,

Buy and sell agreements,

Redistribution agreements

REQUIREMENTS BY FRANCHISEE (YOURSELF) It is essential that you have the following available:

Valid Liquor License;

ID Document / CK Document /

Company Document;

Physical address;

Contact details

*Landline

*Fax

*Email

*Cell

Banking details registered on business;

VAT Registration certificate for business;

Merchant credit card facilities.

IMPORTANT FACTS TO KNOW

We do not run your business for you;

We are there to assist you at all stages to run a more efficient and profitable business;

We do not dictate pricing. We only give recommended selling prices and require that you adhere to pricing on pamphlet advertising or newspaper.

CATEGORY MANAGEMENT We have in-house category management team that assist you at your store with shelve layouts, planograms and category management according to your rate of sale.

FINANCIAL SERVICES We presently have an agreement with all the financial institutions with specific reference to ABSA, FNB, Nedbank, Standard Bank, Capitec, EFTPOS on:

Deposit fees;

Credit card fees;

Debit card fees;

EFT Fees;

ATM Fees;

Overdraft & Credit Facilities.

MONEY IN TRANSIT The franchisor has preferential deals with G4S and SBV to daily pick-ups at all stores. This would include 6 pick-ups per week Monday to Saturday. This is to ensure optimal safety of cash management within the store.
We also have deals on Deposita and CIT Services.

TRADEMARKS All Overland, Liquor Zone and Spot-On names are registered trademarks and belongs to Galactic Deals and Sentrade respectively.

NEW STORES Setting up a store from scratch will cost a potential franchisee approximately R10 000 (Ten Thousand Rand) per square meter, including VAT. The optimal recommended size is between 250 square meters to 400 square meters, depending on trading densities for recommended areas. This includes Refrigeration, shelving, Point of Sale, Ice Machine, Staff Uniform and Stock.

COSTS The franchise would consist out of the following costs:

A once off joining fee of R 3 750-00 + VAT;

A once off signage contribution of R 3 750-00 + VAT;

A monthly administration fee of R 2 000-00 + VAT. This is only payable after signage has been erected;

A monthly advertising fee of R 1 000-00 + VAT. This is only payable after first set of pamphlets have been delivered;

Pamphlets for Spot-On stores are optional.

Spot-On once off joining fee and contribution fee will be R 1 500-00 + VAT.

All monthly fees payable by debit order.

IN CONCLUSION

Better pricing basket for basket from all suppliers;

Better banking rates from all financial institutions;

Corporate identity and make you part of a national footprint;

The franchise would add value to your business and profitability;

Overland is BEE accredited and holds a Level 3 status;

Yearly conference.

REMEMBER Being part of Overland does not prevent you from buying from other channels - although we prefer you to use our channel (as we believe it to be the best)-nobody loses their independence and can still use other channels. You can also buy from our warehouse - Galactic Distribution Centre.

ADMINISTRATION AND ACCOUNTS Members administer and pay their accounts with suppliers. Overland assists in the linking of your existing accounts or opening accounts with suppliers.

STEPS IN JOINING

• Existing outlets
• Completion of application form;
• Approval and linking of accounts;
• Signage, uniforms and opening;
• Once off Joining fee which include basic outside signage, with a small contribution from the franchisee;
• Monthly advertising fee which includes free pamphlets, promotional material, press advertising etc...
• Monthly franchise fee.
• We also support you in;
• Securing of premises-leasing;
• Liquor license application;
• Acquisition of equipment.