US Fast Food Franchisee for the African Market Seeking Partners

Opportunity Snapshot

US Fast Food Franchisee for the African Market Seeking Partners Fast Food is a rapidly growing industry unexplored in many African countries. Image Courtesy: Misako Kuniya, 2010, Flickr CC.

Investment Opportunity

Fast food franchise offering burgers, chicken, etc. starting up with min. 10 stores. The investor can make a split of equity to loan for the whole amount of $5000000.

Product/services: fast food, incl. burgers, chicken etc.

Target market: young and mobile fast food lovers
Revenue generation model: 10 stores in major cities of South Africa and Africa with international visitors for business and tourism with the brand knowledge.

Project justification: This is a fast growing industry with huge potential and this being the top 5 brand in the US.

Project timeline and key milestones:
- Signing of agreement and visit to US - August 2014
- Starting of building operations and fitting of stores- October 2014
- Opening date - March 2015

Funding needs: $5 000 000

Offering to the investor:
- 20% share equivalent to $1 000 000 to a maximum of 49% share equivalent to $2 450 000.
- Payback period is 5 years.
- ROI is 30%.
An equity to loan ratio of the above will be appreciated.

Competitive Advantage

Our direct competitors are McDonalds, Burger King, Wimpy, and Steers. Indirect competitors include KFC and other fast food stores.
Our brand is within the industry's top 5 in US.
Our success is sustainable, and competitors won't be able to easily repeat our product.

Rationale for the deal

The opportunity is huge as this a fast growing industry and unexplored in other African countries.
We will succeed by being different as we are a new brand tried and tested in other markets.
Other fast food brands are already reaping benefits - McDonald had grown and Burger King is very popular.
I have hotel and liquor store experience and have experience of running branch operations as CEO of a 9 branch operation.

Use of financing

Funding is needed to obtain rental spaces in malls and cities, build stores, pay for marketing and travel between US and South Africa.
We are confident in the success of this operation and are open to leverage on the skills of investors.
We are looking for two (2) rounds of funding, the first one for the start-up and roll out in South Africa and the second one for roll out into Africa.

Opportunity for the investor

Debt to Equity ratio of 80/20 maximum to 51/49 minimum, i.e. $4 000 000/$1 000 000 to $2 550 000/2 450 000.
Share on offer: 49% maximum to 20% minimum
Dividends: Minimum 10% of net profit
ROI/IRR: 30-40%/15.
Depends on investor preference.
Minimum of $50 000 to be available within 1 month of agreement and the balance to be motivated for each stage, preference in instalments of $50 000 as and when it is required for stated purposes.


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