Click on a question below to view its containing answer.
The Tax Shop concept was a first in SA and we are currently the largest accounting and tax franchise in Southern Africa. Our model is ideally suited to bookkeepers, accountants, auditors and related practitioners, whether you are starting out or have an existing practice. Enjoy the benfits of an established brand, proven business model and the security of being of a successful professional services group. If you are looking to grow your practice then The Tax Shop is for you!
Our franchise licence fee is subject to change and is often reduced by our exciting monthly promotions. To find out about our current licence fee and what it includes please view the special offer on our Tax Shop Franchising
page. In addition to the franchise licence fee, we recommend an amount of R30,000 as working capital to kick-start your business.
Royalties are charged monthly against net turnover at 10% which is standard in the franchising industry and which covers ongoing training, software updates, call centre staff, etc. as well as national advertising costs. New franchisees are generally exempt from royalty payments for the first few months of operation.
Our single franchise licence fee includes all of the following:
• The right to trade in a zone agreed upon with you.
• Start-up training at our head office (3 days in Pretoria) with all costs of transport, meals and accommodation included.
• Twelve-month online international marketing course specifically designed for accountants. This course is offered by a world-renowned expert and has proved very successful in helping accountants to drive new business to their practices.
• An initial marketing launch in your area e.g. newspapers adverts, social events, etc. The purpose of this is to ignite your practice locally in a big way and to announce the launch of your practice.
• Marketing material in the form of banners, flyers, business cards, corporate folders and brochures designed to kickstart your practice.
• Personal mentoring on running your practice including input on marketing strategies which have been tested and proven historically.
• Start-up material in the form of instructional guides, handbooks and other reference information.
• Ongoing support, training, backup and expertise from top professionals.
• Admission to world-class software operating in the cloud and which can be accessed from anywhere in the world.
• Discounted access to professional organisations e.g. SAIBA, SAIT, etc.
• Substantial discounts in many other areas. The size of our group makes it possible to negotiate such discounts. For example, professional indemnity insurance, which can cost tens of thousands of rands a year for a single practitioner will only cost a few hundred rands a year through us. Similarly, the cost of the online marketing course referred to above has been reduced from nearly R70,000 to less than R20,000 for our franchisees (the cost of this course is included in our franchise licence fee).
• Unlimited email addresses and fax-to-email numbers.
You should consider these benefits when deciding whether to franchise with us as opposed to trading on your own:
1) Franchisees grow their professional practices based on a proven franchise model by offering convenient, personalised, first-class professional services to small and medium-sized business clients and individuals. In addition, growth is accelerated by concentrating on our selected client’s specific needs. Franchisees use our support functions, training and useful operating manuals to provide top personalised services to clients and to grow a sizeable practice.
2) Franchisees can build a valuable asset and benefit in the brand value while earning income from their business. By adhering to The Tax Shop business model and taking a proactive approach to marketing in their designated area, while also benefitting from leads generated by Head Office, franchisees are able acquire clients and grow the value of their investment in the brand.
3) Franchisees gain access to all our intellectual property e.g. training guides, practice manuals, brand marketing and much more which practitioners, who operate on their own, will not readily have in practice. As a result, aspects such as quality control, professionalism, ethics and client retention are key priorities for The Tax shop which may not necessarily be the case for the average practitioner. In addition, we work with you to create an initial business plan and provide support for you to achieve the target turnover within 3 to 5 years.
4) Franchisees gain access to the best cloud-based software, professional organisations and professional services at significantly discounted pricing benefiting from the buying power of the franchise group which is not available to individual practitioners.
5) Franchisees receive leads generated via our national marketing campaigns. We can never guarantee leads, but, as a positive example, one franchise in our group expanded to 500 clients within 2 years of trading predominantly because of our marketing referrals.
6) We offer franchisees access to a wide variety of services which could not easily be offered by a single practitioner such as legal, trust, wills and assurance-related services through our network of trusted service providers.
7) Franchisees receive ongoing backup and technical support from our Head Office and have access to a vast knowledge base of information gathered in our franchise group.
8) Franchisees remain on the cutting edge of new developments, changes in our profession and the latest legislation through notifications and ongoing training from our Head Office, something which is extremely difficult to maintain as an individual practitioner.
9) Franchisees enjoy the benefits of national marketing campaigns and can draw on successful marketing campaigns by other franchisees within the group.
10) Franchisees buy into a brand which is increasing in strength and value all the time and which offers continuity to clients. This makes it possible to sell your franchise licence in the future at a premium, something which is very difficult if you are simply trading in your own name. It is widely accepted that professionals are finding it more and more difficult to sell their practices because there is no or little guarantee that clients will remain with the buyer of the business, a problem which is greatly reduced in a franchise structure like ours by buying into a brand.
The next step in the process is for us to approve you as a prospective franchisee - this normally requires submission of your CV to us for assessment. Once we have approved you as a prospective franchisee, we will send a draft franchise agreement to you for review.
We provide training at our head office which typically takes 3 days. We have a training schedule which covers all the services we offer, operation of all our software, communication with various government departments e.g. SARS and CIPC, general administration and management of your franchise. New franchsiees receive access to instructional guides, practice manuals, checklists, questionnaires and various documents to support everything which is taught to franchisees.
The cost of start-up training depends upon whether a new or existing franchise licence is bought:
• Where a new franchise licence is purchased, start-up training is provided at no additional cost as it is included in the franchise licence fee. Our fees for any additional training thereafter is usually negotiated with franchisees and will vary, depending on the level of training required.
• Where an existing franchise licence is purchased, a fee will be charged for start-up training as the franchise licence fee will be paid directly the outgoing franchisee and not to us. The cost of the start-up training, in such cases, will be clearly communicated by us.
The start-up training process includes the accommodation, meals, travel costs and training of one person. Additional people may attend the start-up training, but, in such cases, we will communicate the costs of bringing additional attendees.
To secure a zone you may place R10,000 as part of the initial payment towards purchasing a licence for a specific zone or area (reservation fee). This payment is not refundable, but, is used to reduce the cost of the single franchise licence fee.
Yes. However, the training and setup of a Tax Shop will not take place before the price for The Tax Shop has been paid in full. Prospective franchisees generally have 60 days to pay the remainder of the purchase price after the initial reservation fee of R10,000 has been made and to start trading.
We refer to areas or locations as ZONES and work on the principle of one shop per population of 100,000 people. This may mean that it is possible to have more than one shop in a zone. For example, if say, the centre of Johannesburg has a population of (say) 350,000 people, it may be possible to establish 2 - 3 shops in that zone. We do however take into account the economic activity of a zone, the average age of population etc. before making a final consideration about the establishment of additional shops in any given zone. The best way to check if an area is available for you is to firstly visit our TAX SHOP FRANCHISING page . If the location of your choice is not listed on the interactive map on this page, then it is definitely available for purchase. If it is already listed on this page, then it may still be possible to purchase an additional licence for the location of your choice, provided that the population and economic activity of the location is sufficient to support additional shop(s) as described above.
We require franchisees to operate in their own names, or if they prefer to incorporate, to establish a Personal Liability Company (Inc).
We have an open line of communication daily to all our franchisees to answer technical queries and to provide advice and information. Franchisees who have purchased a franchise licence are entitled to unlimited backup and support from top professionals at our Head Office. In addition, we engage in continued training with all franchisees.
Franchisees receive the following:
• At start-up we provide immediate marketing material in the form of a banner, flyers, corporate folders and business cards.
• New franchisees are automatically registered for a 12-month international marketing course specifically designed for accountants. This course is offered by a world-renowned expert and has proved very successful in helping accountants to drive new business to their practices.
• New franchisees also qualify for an initial marketing launch in their area - e.g. newspapers adverts, social events, etc. The purpose of this is to ignite the franchisee's practice locally in a big way and to announce the launch of their practice.
• We advertise nationally and locally. Examples include advertisements in national newspapers and on national radio from time to time.
• We maintain a strong web presence e.g. via Google throughout the year.
• We assist franchisees with local marketing campaigns and also perform related functions such as contacting businesses in a franchisee's zone to set up meetings for them.
• Business leads are regularly passed on from our Head Office to franchisees.
Unfortunately not at this stage. Prospective franchisees who do not have the necessary capital would need to approach financial institutions in order to loan from them. It is suggested to apply for the franchise licence fee plus working capital of approximately R30,000. We can also refer you to companies which specialise in assisting entrepreneurs to obtain franchise funding.
We started franchising the business in January 2007 and have seen the franchise become one of the fastest growing franchises in South Africa today. You can view a complete list of all our outlets on our Find a Franchise Near You
Our primary goal is to to establish The Tax Shop as the preferred provider of professional accounting, payroll and taxation services to business and the public in South Africa, Africa and abroad.
Certainly, we refer you to the interactive map on our Find a Franchise Near You
page for a list of all our current franchisees. Please bear in mind that some have only recently started trading, while others have been relatively inactive for various reasons. It would be good for you to contact a franchisee who has been active for a reasonable period to gain a more detailed understanding of the business.
We only have access to turnover figures and are able to provide you with general data regarding turnover. You are welcome to contact franchisees directly to discuss financial performance with them. We refer you to our Find a Franchise Near You
page for a list of all our current franchisees which also contains their contact details.
We recommend R50,000. However, some of our better performing franchisees broke even within the first month with the result that very little working capital was required. However, we suggest R50,000 for the sake of prudence.
Apart from the regular costs of running a business e.g. salaries, telephone, marketing, printing and stationery etc, there are no strange or hidden costs.
No, unless you or your staff require additional training at a later stage (e.g. for new staff), in which case we will communicate our training fee to you. Also, we do negotiate discounted rates for software and professional memberships, but, these are usually optional for franchisees.
We charge 10% (plus vat) on monthly net turnover. This fee is standard in the franchise industry and covers ongoing training, software updates, call centre staff, etc. as well as national advertising costs.
Royalties are calculated on net monthly turnover. We charge 10% (plus vat) which is standard in the franchising industry. New franchisees are generally exempt from royalty payments for the first few months of operation.
It is generally the responsibility of the franchisee to find a suitable location although we will gladly provide input and advice on the suitability of any locations identified by the franchisee. We are not prescriptive in this regard and some franchisees operate from home while others work from an office environment. However, experience has shown that franchisees who operate from an office generally tend to perform better than those who operate from home.
The design and outfitting of the premises is generally the responsibility of the franchisee although we will gladly provide input and advice. We do expect that franchisee outlets are aligned with our corporate colours and image branding as much as possible.
You can open immediately after training is undertaken at our Head Office.
You will be able to offer all the services listed on Our Services