#SAFranchiseFriday featuring Mr Kruger

BACKGROUND
Mr Kruger is a successful gold exchange business, founded by Arno Egen in 2014. The performance of the initial Mr Kruger branded outlet has clearly demonstrated that in the prevailing market conditions there is a real need for the services they offer. Mr Kruger is an authorised partner of the South African Mint and a member of the South African Association Of Numismatic Dealers (SAAND) and the Jewellery Council of South Africa.

THE CONCEPT 
Mr Kruger’s principal business is the buying and selling of gold and other metals, whether in the form of bullion, typically represented by Krugerrands, or jewellery. As a gold exchange, they enable customers to translate faded sentimental value into cash by purchasing gold jewellery and other items, which they either recycle or remodel into newer, unique and more on-trend designs.

The value of every transaction is determined by the current trading metal price; a fact that brings transparency to the business and offers customers a refreshing certainty. In addition to offering Krugerrands for sale, they also deal in numismatics and collectables, enabling customers to realise the value in inherited but unwanted jewellery, coins and medals. Mr Kruger also offers a secure free storage service and a free, no-obligation evaluation service.

Mr Kruger is affected by the Second-hand Goods Act, the Financial Intelligence Centre Act (FICA), the Protection of Personal Information Act (PoPI), Consumer Protection Act (CPA) and the Competition Commission. Regular audits are carried out to ensure that all Mr Kruger outlets are fully compliant.

FRANCHISOR SUPPORT
Mr Kruger provides franchisees with a turnkey business solution and each outlet is professionally shopfitted with state of the art equipment, and stylish furniture and décor. The franchisor provides complete trading solutions on all products, including stock procurement and trading in precious metals and diamonds to the best markets, thereby enhancing cash flow and stock availability. To ensure their franchisees’ security, the franchisor operates a control room with 24-hour monitoring and interactive cameras that are also linked to the respective armed response companies.

The 3-month franchisee training programme encompasses instruction and technical priming through specialised training courses on recycled metals, diamonds, bullion products, manufacturing, numismatics, best practices, safety, administration, finance- and operational systems, and industry-specific soft skills.

Their substantial ongoing support includes annual refresher courses, secure courier services as well as proactive and focussed national marketing and public relations campaigns.

FRANCHISEE PROFILE
Mr Kruger is a customer-oriented brand whose franchisees possess exceptional empathy and interpersonal skills. Mr Kruger franchisees are expected to embody the ideals of the brand and exhibit the utmost level of professionalism and discretion as expected by their customers.

HISTORY
Founder: Arno Egen
Year founded:2014
Area of origin: Pretoria, Gauteng
CEO: Arno Egen

NETWORK
1st SA franchise opened: 2015
Number of SA outlets: 2

FRANCHISE AGREEMENT
Management services fee: 0.5% to 3% of turnover
Marketing fee: 7% on gross profit
Agreement term: 5 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: From R1,45 million
Franchise joining fee: R550 000
Working capital required: From R500 000
Total average set-up cost: From R2,5 million
Average monthly turnover: Available on request
Achievable gross margins: Available on request

WANT TO KNOW MORE?
Contact Arno Egen on 0861 111 860 or email franchising@mrkruger.co.za
www.mrkruger.co.za