JSE-listed franchising company Gold Brands Investments (GBI) has entered into a development agreement with a master franchisor, who will have the exclusive right of developing the Chesanyama brand in all countries outside Africa.
The master franchisor will own the exclusive rights to roll out and franchise the Chesanyama concept outside of Africa and GBI will be the exclusive supplier to the master franchisor.
The master franchisor will pay GBI a consideration of £500 000 for the master licence and will be obliged to pay GBI new restaurant opening fees of £15 000 per store and royalty fees of 6% of net sales per company owned store and 50% of the fees mentioned above per sub-franchised store.
The master franchisor is obliged to open a minimum of two stores in the first year, three stores in the second year and five stores each year thereafter.
Chesanyama is a traditional South African braai concept, previously only seen in back gardens and township street corners, which was introduced into the mainstream market by GBI. Chesanyama offers customers flame-grilled mature A-grade meats, and serves them up with its traditional pap and relish, or freshly cut chips.
GBI has already expanded the brand to the US in 2016, through a partnership with private investors Red Hornbill and The White Family Partnership.
GBI holds 30% of the US-based company, with Red Hornbill holding 40% and The White Family Partnership the remaining 30%.