Franchise Info

BACKGROUND

Since starting to franchise our methods and business model in 1997, Creative Minds® have, already opened more than sixty branches. This unique South African product, easily exports into other cultures and our medium term goals have been reached as if in a blink of the eye.

Creative Minds® is a group of franchised skills training centres, with the current emphasis on computer literacy and small business training, where we are firmly entrenched in the largest market of all: Families, jobseekers, children, teenagers, mothers, middle-aged and elderly people who wants caring and gentle personal tuition.

Creative Minds® was started by Marius Lubbe, after observing a need for caring and trusted community based computer training. His background in educational book publishing and his specific interest in accessible learning technologies, lead him to develop a unique method of dealing with students in a caring and confidence building way.

Since the concept has become known, Creative Minds® has become sought after, and is the top franchise in our market, after sustained explosive growth since inception.  Creative Minds has twice been featured on the cover of the small business magazine: “Start and Manage Your Business”.

Creative Minds® is also seen as the largest privately owned and managed franchise of its kind in Southern Africa.

Our company is now ideally set to make a meaningful and successful leap into the African continental market and other larger international markets.

INTRODUCTION

Creative Minds® offers a well-proven, tailor-made and complete new enterprise. The red tape and risks normally involved in starting a new business have already been straightened out. We are a very profitable business and cater for the whole family. We find that children make up about 10% of our market, however this is equal to the full complement of most “children’s computer training franchises”.

What is important to note is that the specific material we use to train students, although pretty fantastic, is not the crucial element in our success. However what makes a real difference is how we present it and our completely different way of thinking. This and our specific methodology make us unique in the world, and is the cause of our phenomenal growth.

We have Master Franchises available for every country and each State (USA).

Full training in all aspects of the franchise and the franchise management will be provided at head office in Cape Town, South Africa. You will be able to sell as many franchises within his country as you believe to be viable.

A master-franchise for a typical country in Africa for instance,  is available at:

  1. US$ 100 000 approximately, as an initial License buy-in fee (Somewhat negotiable, depending on your country, business plan, rollout plan and ability and background) and
  2. 10 % royalty on all initial Local-Sub-Licensing fees, and Regional-Sub-Licensing fees, sold by you, as well as
  3. 10% royalty on all monthly licence-renewal fees and royalties paid to you as master franchisor from your branches and your regional sub licensees.

Contact us if you are unsure where to go for small business finance in your country. Make sure you are properly prepared with a business-plan and all the facts before contacting them. You will only get one chance to impress them. Contact us for financials and basic info, please.

Control structure:

=> In this context Local-Sub-Licensing means all the branches (franchisee) under your (Creative Minds®  – Head Office – Botswana) direct control in your own State (including your own demo centre), and

=> => Regional-Sub-Licensing means state or provincial head offices, that you sell to a person or organisation in every state

=> => => who then sell to a person or organisation in every city or town and control their own licensee branches (franchisee).

licencing

Earnings structure:

=> Above the earnings from students enrolled at your demo centre, you will earn a monthly license fee from each Licensee (Franchisee) under your (CM – Head Office – Botswana) direct control in your own State, and

=> => You will earn an initial License buy-in fee from each Regional-Sub-License, as well as 10% royalty on all the new branches (Licenses/Franchises) sold by them, and 15% royalty on all monthly License renewal fees paid by the branches (Licenses/Franchises) to their Regional Head Office.

=> => => Regional-Sub-Licensees will each earn a monthly license renewal fee from their branches (Licenses/Franchises).

Add to this the value of the infrastructure you will develop and the income derived from being a distributor of hardware, software and internet service to all the franchises in that infrastructure chain, who in their turn will provide the sale and support of these items to their students and clients free of charge to you.

This is a well proven and easy to manage system, which requires the minimum of staff, and can easily be managed by a team of two or three people. Because we have a fixed fee for franchisees to pay on a monthly basis, it negates the very expensive and organisationally large set-up normally needed to police and audit franchisees.

YOUR FUNCTIONS AS MASTER FRANCHISEE.

Your primary functions as a master franchisee will be training, providing support to the franchisees and selling new centres in your country.

Head Office will in turn train and support you, the master-franchisee, from Cape Town – South Africa. We will also be responsible for research and continued development of the system. If your country uses a language other than English as its primary IT-language, you may be required to do the necessary translations of lessons, a copy of which must be lodged with Head Office in South Africa quarterly.

A master franchisee will be responsible for promoting the Creative Minds name, but advertising for students is a function of individual franchisees in their specific trading areas. You will be required to advise franchisees on ad campaigns and methods of promotion.

This is a huge and sustainable business, which can easily be built up by a couple of well-motivated people.

Below in an example of what you can offer to individual franchisees in Your Country:

We have four licensing options available, depending roughly on the size of the village, town or area in which your Creative Minds® Training Centre will be situated.

Micro = Very small rural towns and villages only.
Initial once-off license fee: approximately US $ 10 000 Includes:
1 or 2 x Duo class-multimedia computers.  Colour printer.  Complete software package
Full training and support.  Initial marketing package
Additional computers and software on cost plus basis.
Monthly license renewal fee at approximately US $ 180 per month.

Option A = Small rural towns only
Initial once-off license fee: approximately US $ 17 000 Includes:
2 or 3 x (at least Core 2 Duo) computers.  Colour printer.  Complete software package

Full training and support.  Initial marketing package
Additional computers and software on cost plus basis.
Monthly license renewal fee at approximately US $ 200 per month.

Option B = Large Towns and suburban areas.
Initial once-off license fee: approximately US $ 21 000 Includes:
4 or 5 x (at least Core 2 Duo) computers.  Colour printer.  Complete software package
Full training and support.  Initial marketing package.
Additional computers and software on cost plus basis.

Monthly license renewal fee at approximately US $ 300 per month.

Option C = Very Large Towns and large suburban areas.
License fee: approximately US $ 30 000 Includes:
4 to 8 x (at least Core 2 Duo) computers and a network.  Colour printer.  Complete software package
Full training and support.  Initial marketing package
Additional computers and software on cost plus basis.
Monthly license renewal fee at US $ 400 per month.

NO ROYALTIES ON TURNOVER PAYABLE!
There is no limit on future growth, and having more PC’s in your sub-franchisee’s centre and earning those more, does not affect their monthly license payment to at all! You will levy an annual 10% or rate of inflation increase on your sub licensee’s monthly renewal fees.

Please feel free to contact me for any further details or help you may need in this regard.

Marius Lubbe marius@minds.co.za