#SAFranchiseFriday featuring Levingers

BACKGROUND
Levingers Expert Shoe Repairs, as it was originally known, was founded by Henry Levinger, a Jewish immigrant who settled in South Africa during the turbulent years of World War II. Ownership of the company eventually passed to his children, Peter and Margaret. Peter, who had originally studied to become a medical doctor, developed a reputation for his superior work on orthopaedic shoes and under his stewardship the business grew from a single outlet to a chain of three with branches in Cresta, Balfour Park and Killarney.

After Peter’s death the business changed hands a number of times until 2012 when it was acquired by Hay Business Consulting under the direction of Yadhir Mooloo. With their thorough understanding of the dry cleaning and laundry industry, Yadhir’s team created an effective and profitable franchise model.

THE CONCEPT 
In addition to their standard dry cleaning, laundry and on-site shoe repair services, Levingers outlets retail an extensive range of shoe and closet care products and provide such specialised services as mending and tailoring, tailor-made suits, professional dyeing of clothes, shoes and leather goods, and specialised cleaning of leather and suede items. Levingers also offers large corporate businesses a tailor-made service for in-house dry cleaning, shoe repair and clothes mending.

Levingers dry cleaning and laundry services are handled at off-site locations around Gauteng. Depending on the location of the outlet, the factory offers a same-day or 24-hour turnaround time. A custom-designed state-of-the-art POS system helps to keep outlets running smoothly.

Levingers has also entered into a partnership with the Bramhope Health & Safety initiative to introduce a garment rental solution to the market.

FRANCHISOR SUPPORT
Working with their franchisees to build mutually beneficial relationships, the Levingers support team provides business support, quality service, processing and sales, and marketing tools.

All Levingers team members complete a comprehensive training programme to equip them to run an effective and profitable operation. Ongoing training is provided on an ad-hoc basis to ensure that franchisees stay abreast of industry trends.

The franchisor employs area-specific marketing and through their localised marketing initiatives, franchisees are able to target specific growth opportunities in their area while leveraging off the wider Levingers footprint.

FRANCHISEE PROFILE
Preference will be given to applicants with prior business experience and who are comfortable dealing with people from all walks of life. The application process includes in-depth interviews, a personal assessment and reference checks.

SNAPSHOT

HISTORY
Founder: Peter Levinger
Year founded: 1942
Area of origin: Johannesburg, Gauteng
CEO: Yadhir Mooloo

NETWORK
1st SA franchise opened: 2011
Number of SA outlets: 69

FRANCHISE AGREEMENT
Management fee: R6 827 pm
Marketing fee: R1 709 pm
Agreement term: 5 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R795 000 to R1 million
Franchise joining fee: R150 000
Working capital required: R260 000
TOTAL average set-up cost: From R1,205 million
Average monthly turnover: 72%
Achievable gross margins: Available on request

WANT TO KNOW MORE?
Contact Yadhir Mooloo  on +27 11 440 2038 or email yadhir@levingers.co.za
www.levingers.co.za