Business Opportunities

South African or International Business Opportunities


*South African Opportunities*

Thank you for your interest in an American Fudge Factory franchise. We appreciate your interest and will try to answer some of the more commonly asked questions in this text. However, in order to evaluate this opportunity we strongly recommend that you attend a presentation.


We have developed a business which is unique in terms of the product we sell and the method in which we market it, and by attending a presentation you are able to make a more informed decision. Let us look at some of the questions you may be asking yourself:

How much does it cost?

This is often the first and sometimes the only question asked when people enquire about The American Fudge Factory. We believe that the first question that should be asked is " Is this the right business for me?" or at least " What is the return I will get if I invest in The American Fudge Factory?" We will therefore first look at these two areas before proceeding to a breakdown of costs.

Is it the right business for me?

The American Fudge Factory has been operating as a concept in one form or another for over 100 years in the USA, and has been adapted to the present with a strong accent on fun and entertainment. All our stores operate as fully-fledged production units within a retail environment. This means we require individuals with a strong desire to succeed and who can handle the long hours demanded from any modern retail business. We provide full training in the making of American style fudge as well as the operation of a retail store. You need no prior experience, just a lot of guts and determination.

What is the return on investment!

Job satisfaction! This is not said simply in jest, as the ownership of one's own business does genuinely bring most people an enormous amount of joy and satisfaction. At The American Fudge Factory we add to this satisfaction by providing a business opportunity which is enjoyable to operate and fun to work in. We have done this by identifying the four areas in any business which absorb the most management time and financial responsibility, and reduced them to a minimum. They are: -

Staff - human resources have not only become our most expensive resource, but particularly in South Africa one of our most problematic. In The American Fudge Factory, we manage this resource by reducing the number of permanent staff to a minimum and using casuals to cope when needed.

Transport -this too has become an enormous expense for companies who have to use delivery vehicles and provide company cars. In The American Fudge Factory, we simply borrow a shopping trolley..

Inventory - most companies invest huge amounts in keeping sufficient stock to satisfy customers and a lot of time on managing inventory. Our investment in both raw ingredients and finished product is minimal.

Debtors - The American Fudge Factory operates on a cash only basis and therefore has neither debtors nor bad debts

From a financial point of view, success of each franchise is dependent upon your own efforts. We generally only take sites which we estimate are capable of producing a minimum of 40% - 50% return on investment. We are able to achieve these high returns by going from raw ingredient to finished product in a retail enviroment, thus serving the end user directly.

From a financial point of view, we cannot guarantee any returns because the business is largely dependent upon your own efforts. We generally only take sites which we estimate are capable of producing a minimum of 40 - 50% return on investment. We are able to achieve these high returns by going from raw ingredient to finished product in a retail environment, thus serving the end user directly. Provided you follow our proven recipe and put in the long hours required you could earn an excellent return.

How much do I have to invest?

The setup cost is:
     Franchise fee                = R 50000
     Equipment                    = R 70000
     Shopfitting                    = R105000

Working Capital = R50000

Total Capital exp. = R275 000

This amounts to a total requirement of R275 000, and we strongly advise all applicants to ensure that they have at least R300 000 available. The lease deposit - usually provided in the form of a bank guarantee - varies from location to location and has not been included in this budget. A further possible expense can be incurred in some instances where there are shopfront alterations which have to be done.

The company charges a management fee or royalty of 5% per month on gross turnover, and an advertising levy of 2% calculated the same way.

Do you offer financing?

We do not offer any financing ourselves, but we are able to assist you in your application to the bank of your choice, or we can introduce you to some of the banks we deal with regularly. Generally, the bank will require that you contribute at least R100 000 of your own capital and they will finance the rest subject to your credit-worthiness.

We are able to help you with the drawing up of a business plan, as well as all other information required by the bank.

Must I get the site?

In some instances, the franchise applicant may be aware of a site that we have not considered, and in that case we will do the necessary research to determine the viability of the site. However, The American Fudge Factory has applied at most major centres for sites on behalf of our franchisees and you will be able to select a site from one of these. Approved franchisees are granted sites on a first come first served basis, but the final decision on whether you take a site offered to you is always left up to you.

How many staff do I need?

These and many other questions will be addressed in detail for each site individually. You may rest assured that we will be able to advise you in all aspects of the business - this is the biggest benefit of purchasing a franchise rather than starting on your own. You will be joining a support system which consists of existing successful franchisees and an established brand which gives you a definite edge in the marketplace.We urge you again to come and chat to us, you have nothing to lose but a couple of hours as opposed to lifetime of regret at a missed opportunity.

Provided you follow our proven recipe and put in the long hours required you could earn an excellent return

International Master License

Are you the type of person who can drive his own business?
Do you want to live in Europe, Australia or New Zealand?
We are able to offer you the opportunity of duplicating this
South African success story anywhere in the world.
For an initial investment of only US $20 000 you can gain
the development rights to the country of your choice,
and we will cap your further investment at an additional
US $10 000, depending on the number of stores you open.
Training is provided in South Africa at a nominal cost of
ZA R50 000 , and all equipment can be sourced locally.
Give us a ring to change your life.

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