Timbercity
ABOUT TIMBERCITY
With over 43 years of industry experience providing superior products, outstanding service and successful branding and advertising, Timbercity is one of southern Africa’s most recognised and trusted brands.
Originally established by two independent entrepreneurs, the brand was acquired by PG Wood two years later and in 1979 the first Timbercity franchise store was launched. Today Timbercity is a subsidiary of SteinBuild, a proud member of the JD Group. Steinbuild’s growth strategy for the Timbercity brand is based on their already established and solid foundation. With the focus on opening successful sustainable franchises, the group is growing slowly because we are seeking out the right operators to take the brand to the next level. Access to SteinBuild’s supply chain has enabled the growth of the group not only in South Africa but also in Zambia, Botswana and Namibia.
MEET THE HEAD OF FRANCHISING
Andre de Jager
Head of Franchising
OUR CULTURE & VALUES
At Timbercity we cultivate a strong performance culture that respects diversity, inspires urgency and energy, prides itself in honesty and integrity, and encourages us to accept responsibility for and accountability to our customers.
OUR FRANCHISE OFFERING
With 36 local branches and six branches in neighbouring countries we have a well-established foot print that covers southern Africa. We offer franchisees the opportunity to run and manage their own business while providing buying, operational and marketing support. We assist franchisees with the set-up of their store, opening supplier accounts, staffing and HR.
The Timbercity business model accommodates the establishment of new outlets as well as the conversion and rebranding of existing businesses. To entice the growing building, kitchen, trade and DIY sectors, the Timbercity retail space has been enhanced to deliver a superior customer shopping experience. By employing skilled, knowledgeable staff and contracting with top quality suppliers, Timbercity is able to provide customers with expert advice regarding their project queries.
PRODUCTS & SERVICES
Timbercity outlets stock a wide range of products from top quality timber, boards and shelving to kitchen hardware and accessories, worktops, joinery, mouldings and building materials. All Timbercity outlets operate state-of-the-art cut shops that offer specialised services such as cutting, edging and drilling. Selected Timbercity branches also boast a design centre where custom designs can be created to suit the customer’s unique style.
MARKET TRENDS & TARGET MARKET
Our customers are mainly trade contractors such as carpenters, kitchen cupboard installers and cabinet makers, but we attract DIY trade.
BECOME A FRANCHISEE
Our franchisees are hands-on operators who exhibit a strong entrepreneurial spirit and have excellent leadership ability. Franchisees should be motivated to make a difference in their community and add value to their customers in the timber and hardware space.
ESTABLISHMENTCOSTS
Establishment cost:
R1,5 million to R1,8 million
Joining fee:
R100 000
Working capital:
R1 million
Registered name:
5 Years
Total set-up cost:
From R2,6 million (Finance options are available)
TOTAL set-up cost = Establishment cost + Joining fee + Working capital
Own cash contribution:
60%
LOCATION REQUIREMENTS
A Timbercity requires a warehouse-style outlet of at least 1,200sqm with a yard that that offers interlink access. The facility must also have 3-phase power.
STAFFING REQUIREMENTS
Each outlet will employ a minimum of 12 to 15 suitably skilled staff.
TRAINING
Prior to the store opening Timbercity provides on-site training, while further ongoing training is facilitated through the operations manual, supplier training and biannual workshops hosted by the franchisor.
FRANCHISOR SUPPORT
As a Timbercity franchisee you will benefit from our extensive industry experience (over 42 years!) Plans are afoot to further strengthen our brand, by investing in ground-breaking campaigns that includes TV- and radio advertising and working with SA celebrities/influencers.
AVAILABLE LOCATIONS
We would like to expand in the Western Cape and Gauteng and KwaZulu-Natal regions.
TERMS OF AGREEMENT
Agreement term:
5 Years
Management services / royalty fee
R15 000 pm
Marketing fee
Included in management services fee
COMPANY INFORMATION
Registered name:
Steinhoff Doors & Building Materials (Pty) Ltd
Registration number:
1972/004708/07
Head office address:
2nd Floor Execujet Building, Tower Road, Cape Town International Airport, 7525
Postal address:
PO Box 155, Cape Town International Airport, 7525
Phone:
+27 21 927 5000
Email:
Website:
FAQ's
FUNDING APPLICATION
The consideration of an application for funding by an individual to a financial institution, whether it is a commercial bank or a development funding institution, always pivots around two principles:
- The profile of the applicant candidate with reference to financial position and the way in which an individual conducted his or her personal financial affairs. In certain cases, prior experience in the industry in which the franchise Timbercity operates will be required, e.g. the restaurant and hospitality industries. The funder will also assess the current lifestyle of the applicant in order to determine if the size and profitability of the new business suits the applicant and if expectations could be met.
- The parameters of the actual opportunity available, whether it’s a new or existing business. The business case for the repayment of a loan is always dependent on the numbers, which is a function of location, projected sales, overheads, etc.
It is therefore not possible for a funding application to be processed unless all the details of the applicant, as well as the details of a business’ plan, demonstrating that the business will be able to repay its debt, are available. The initial step will always remain an application to the franchise brand in order to introduce a candidate, after which specific opportunities would be communicated to be followed by an application for funding.
Timbercity will certainly be able to refer successful applicants to suitable funders once an application has been approved by the franchisor, but every funder will also have its own application and approval process.
What could be stated is that once a prospective franchisee has completed the online 6-step application process below, the same application will be submitted to the funder, i.e. no additional forms will be required.
ABOUT THE APPLICATION PROCESS
Should you wish to proceed with the application process, you will be required to register online and navigate your way through a 6-step application process. Only after completing the application process will the franchisor provide you with a detailed Disclosure Document as required by the Consumer Protection Act.
The 6-step application process is designed with three objectives:
- To allow the prospective candidate an opportunity to disclose and communicate all the personal information required by the franchisor and the funder to take a view on how well-suited you are for assuming the role of franchisee.
- As intimidating or time consuming as the application process may seem, it exposes you to a fraction of the level of resilience required to ultimately own and manage your own franchised business.
- Successful franchisees comply with the rules and procedures of the business system. Completing the five steps of the application process can be deemed your introduction to adhering to the Timbercity business system.
While the application process is not intended to discourage prospective franchisees or to create barriers to entry, the process by its very nature will serve as an early deterring mechanism for candidates who should not be pursuing business ownership. The truth is that the challenges a franchisee will face in their own business is significantly more complicated and daunting than the application process. If you are intimidated by the 6-step process running a business will likely be more challenging than you are anticipating, essentially putting yourself, the franchisor, the funder, the landlord and your future staff at risk.
From a cost perspective the charges relating to the entrepreneurial assessment, application review and credit profile verifications are insignificant when measured against the cost of buying a franchise, and it could be the best money you ever spent should the outcome confirm that you should not venture into business or that you would not be able to attract funding.
APPLICATION PROCESS
Upon completion of STEP 1 to 3, you will receive a notification from Timbercity to proceed with STEP 4
STEP 4
Complete full application plus document uploads
STEP 5
Request credit check and application reviewR1000.00 VAT Incl
STEP 6
Franchisor introduction
meeting
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