#SAFranchiseFriday featuring Digit Vehicle Tracking

BACKGROUND
Digit Vehicle Tracking is a strong annuity-based business-in-a-box opportunity in the rapidly expanding vehicle tracking and fleet management solutions (FMS) industry. By their own estimation, Digit Vehicle Tracking is currently the seventh largest tracking and fleet management services company in the country and they continuously strive to improve this rating.

The fleet management and vehicle tracking industry is a progressive industry where the requirements, specifications and add-on features are evolving continuously. By developing their own hardware and software and establishing a network of distributors to get their product to market, Digit Vehicle Tracking has distinguished themselves from the competition.

THE CONCEPT
Digit Vehicle Tracking dealers have access to three possible income streams — the profits on hardware sales, the installation thereof and the annuity income from customer subscription payments. For every tracking system installed, the franchisor charges the franchisee a small monthly fee for accessing their servers and the franchisee carries the cost of the SIM cards.

The company’s DFuel™ system, which allows for live diesel monitoring, has taken the market by storm, establishing Digit Vehicle Tracking as a leader in the live diesel monitoring market in South Africa; a huge advantage in the current economic climate. All products carry a one year warranty and as they manufacture their own products, replacement parts are readily available.

The target market serviced by Digit Vehicle Tracking includes anyone who runs a vehicle in the execution of their duties. Running this business is not a desk job and requires some hands-on effort by individuals who have a good understanding of the automotive, insurance and security industries.

The number of staff employed will depend on the functions the franchisee chooses to perform, be it sales, installation and/or support. The business does not require premises, especially at the outset, as 99 percent of all business engagements, from the introduction and sale to the installation, are typically done at the client’s premises. However, having a shop front will naturally add value to the business and encourage some walk-in customers.

FRANCHISOR SUPPORT
The franchisor offers multi-tiered support, by providing regular software updates and ensuring that franchisees stay abreast of market trends.

A comprehensive training programme ensures that franchisees are fully equipped to provide customers with technical support. Attendance at the annual conference, where extensive sales and hardware installation training is provided, is compulsory.

National and local marketing is carried out across a variety of media, from newspapers to radio adverts and billboards.

FRANCHISEE PROFILE
A Digit Vehicle Tracking franchisee is an entrepreneurial-minded person with a fair grasp of current technology and an interest in the automotive industry. A hands-on owner-operator who can fill many roles will keep costs down and maximise profit.

SNAPSHOT
History
Founder: Rordon Cowley
Year founded: 2007
Area of origin: Johannesburg, Gauteng
CEO: Rordon Cowley

Network
1st SA franchise opened: 2007
Number of SA outlets: 95 +

Financials
* Amounts quoted are VAT exclusive
Average set-up cost: Included in Franchise Fee
Initial joining fee: R350 000 to R500 000
Average monthly turnover: R100 000 +
Achievable gross margin: From 75% to 120%

Franchise Agreement
Management fee: None
Marketing fee: None
Agreement term: 3 Years
Renewal term: 3 Years

WANT TO KNOW MORE?
Contact Lee Bester on +27 11 316 3264 or lee@digicell.co.za
www.digicell.co.za