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How Lipo Slim Ensure A Real Return On Investment

With franchisees seeing ROI in three to six months, 3-in-1 Lipo Slim has a simple yet effective franchise offer that prospective franchisees can benefit from.

Nadine Todd

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Vital stats

  • Players: Hermarie Prozesky and Amelia Roux
  • Franchise: 3-in-1 Lipo Slim
  • Launched: 2014
  • Visit: 3in1liposlim.co.za

Hermarie Prozesky and Amelia Roux launched the 3-in-1 Lipo Slim franchise concept in 2014, after five successful years of developing an effective product line and business solutions.

“By 2014 we were offering a business in a box,” explains Prozesky. “We believe in simple, effective solutions. This meant a product line that was not only effective, but could prove its own results, as well as business training manuals that could assist our clients to set up and run their own salons.”

The problem was that although they offered their clients a full package solution, each salon was still its own entity. Prozesky and Roux had no control over customer service, salon hygiene or the overall client experience, but because their branding was on all the equipment and products, they were receiving complaints from salon clients.

“We realised that we had already developed everything necessary to launch a successful slimming salon franchise, and so we decided to take complete ownership over the entire customer experience through a franchise model,” says Roux.

Related: Beauty And The Business: How The Diva Slimming And Aesthetics Centre Is Full Of Opportunities

Developing a successful business offering

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3-in-1 Lipo Slim is the product of five years’ worth of business development. “We went into business together in 2009 selling consumables to salon owners,” says Prozesky. “This included facial sponges, pedicure ranges, waxing products and so on, but we received a lot of queries about slimming products.

“We realised there was a huge demand for slimming and body sculpting products, and if we could find the right products, it would translate into a big opportunity for us.”

Prozesky and Roux started researching what was available, both locally and abroad, and imported a number of different machines that they tested themselves.

They launched with the Fir Sauna Blanket in 2010, which was such a hit that the entrepreneurs say they ‘killed the market’ with it.

This success was followed in 2011 with a lipo laser machine. “The two machines work well together, and so we started selling not just equipment, but a body slimming and sculpting solution,” says Roux.

This offering was increased when they discovered the Inbody solution through a local distributor. “Inbody measures and tracks the effectiveness of our other equipment,” explains Prozesky. This added huge value to Prozesky and Roux, but more specifically to their salon clients. Now they had a three step solution that could be measured and tracked, offering visible proof of the changes their clients were experiencing.

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“We also started developing business training manuals to assist our customers,” says Roux.

“Many of them either didn’t have business backgrounds and were setting up businesses for the first time, or were looking for assistance in how to run more successful salons.

“There’s power in simplicity. We like to distil everything down to core concepts that can be easily understood and implemented, and we’ve found that this is as true of product offerings as it is of operating a business.”

By 2012 the partners were also ready to develop their own slimming range.

“We partnered with a pharmaceutical company to develop the range,” says Prozesky. “We use all natural products, and the range includes a thermogel, detox caps, CLA caps, meal replacements, and detox oils.” In keeping with Prozesky and Roux’s approach to business, it’s a simple yet elegant and essential range.

“We’ve kept the price point so reasonable that our customers can add a 100% mark-up, when the norm is 30% at the most,” says Roux. “These products all work alongside our machines, and were a nice step in the door for us with new customers.”

Related: 3 Secrets To Franchising Success

Developing a franchise concept

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By 2014 Prozesky and Roux had developed a three part body slimming and sculpting range, complete with products and business manuals. They had also started importing the Fir Sauna Dome, a sophisticated dome that included vibrating pebbles. The Fir Sauna Blanket was exclusively reserved for customers to purchase and use at home.

“All the elements were in place, and when we realised that customers were looking for a predictable, quality experience, franchising seemed like the natural progression for our brand,” says Prozesky.

Two packages are on offer, and they include everything the franchisee needs to set up their business, from the machines, furniture and décor, to product and business training.

“Once set-up is complete, operating costs are low,” says Roux. “This means that the business quickly becomes cash positive. We say return on investment happens in three to six months, but we’ve had one franchisee who achieved ROI in two months. It just depends on how hard you’re willing to work.”

Prozesky and Roux’s ideal franchisee wants to start their own business and be an owner/operator working inside the salon.

“We’ve designed the system, but we’re not here to run businesses for our franchisees,” says Prozesky. “We give you the tools, but your commitment will be what determines your success.”

Ongoing fees

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Franchisees must commit to purchasing R7 500 worth of product from the franchisor each month. This secures a radius of 10 000 people and ensures there will be no other franchisees in your radius.

Marketing fees are R20 000 per year, and cover Google adwords, ads on the franchisor’s website and other marketing. The first year is free.

Related: Pay Attention To The Small Print

PACKAGES

PACKAGE 1

Set-up cost: R650 000
Operating capital: R100 000
Size of salon: 80m2 or two rooms
Set-up
includes:
1x lipo laser that can service two clients simultaneously in a partitioned room.

1x Fir Sauna dome.

All the furniture needed to set up the salon, including two beds, a coffee table, desk, couches, décor, canvases, door wrappings, branded towels, the POS system,
marketing system and
display cabinets.

PACKAGE 2

Set-up cost: R750 000
Operating capital: R100 000
Size of salon: 80m2 to 120m2 or four rooms
Set-up
includes:
1x lipo laser that can service two clients simultaneously in a partitioned room.

2x Fir Sauna domes.

All the furniture needed to set up the salon, including two beds, a coffee table, desk, couches, décor, canvases, door wrappings, branded towels, the POS system,
marketing system and
display cabinets.

With this package, four clients can be treated every half an hour.


Additions to packages

  • Facial package: Includes a scanner that reveals skin problems, and microderm and microlaser machines that treat skin blemishes, wrinkles and so on. Results are immediately evident.
  • Waxing package: Includes everything needed to offer waxes to clients while they are enjoying other treatments.

Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.

Company Posts

Spur’s Got A Taste For Success

With eight brands across five countries, the Spur Corp’s secret sauce to success has all the best ingredients — most importantly, its franchisees. Sacha du Plessis, Group Marketing Executive at Spur Corporation, explains the company’s 51-year journey in creating some of the most popular places to eat the world over.

Nedbank Franchising

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What is the biggest contributor to Spur’s success?

Since the beginning, we’ve made an unwavering commitment to run restaurants that are operated by entrepreneurially-minded owners who put the customer first. Customer satisfaction is one of Spur Corporation’s most important value drivers, we partner with people who ensure we retain and grow a loyal customer base. We seek to work with franchisees who take pride in the training of their staff and prepare food with passion.

This mindset has been alive for over 50 years in our staff and franchisees.

Please share some of the challenges Spur encounters as a franchisor?

We have a sizable franchise network and a big priority is to ensure that we meet customers’ expectations in every single franchise they visit. Another challenge is finding the best franchisees to partner with, people who are aligned with our company values and customer orientation.

In terms of growth, it is sometimes challenging to find the correct locations per brand and to ensure the rental is at a level where it’s sustainable for the franchisee. The management of our marketing communication to ensure we remain relevant and distinctive in an ever changing landscape can also be a challenge.

Related: A Three-Pronged Approach To Franchise Success

Name a few of the qualities you look for when selecting franchisees?

Our business was built on a highly focused customer orientation and centred on a love for food. Our franchisees need to be focused on the customer: Pleasing the customer, meeting the customers’ needs and being willing to spend large amounts of time in growing a business that essentially is the hospitality industry and is really about people. Our franchisees are people who have an appreciation for, and love, food as well as serving their local community over and above their product.

Why is Spur a solid investment for entrepreneurs seeking to pursue franchising?

We’ve invested greatly in growing our brand over a long period of time. Spur was founded by our Executive Chairman Allen Ambor in the spirit of entrepreneurship. Over the past 51 years, we’ve built a track-record of comprehensive operational, finance, marketing, IT, training, procurement, distribution and development support. Our marketing approach grows sustainable brands in a considered and well researched manner.

Our customer scope is broad, so while our main brands are focused on the wider South African market, we also have niche brands. This track record reassures the franchisee and broader market about Spur Corporation’s credibility.

What kind of support can a franchisee expect when joining Spur?

Franchisees can tap into expertise that’s been built up over five decades. We provide franchisees with the most effective tools to help manage and sustain their businesses successfully. Our operational support is wide-reaching and includes access to procurement, development, logistical as well as IT support. Skills development is one of the most important ways in which Spur Corporation supports its franchisees to run successful businesses.

Marketing support enables franchisees to actively identify opportunities and get assistance in developing and implementing bespoke marketing plans for each restaurant. Most importantly, when a franchisee joins Spur Group he or she gets access to cutting-edge management know-how from an experienced team of people who are passionate about our business.

Related: Nedbank’s Full Service Offering for Franchise Owners 

Why is it important for successful franchises such as yours to have a strong banking partner and how does it benefit the franchisee?

Buying into a brand is a substantial investment for a franchisee, so they need a banking partner that will help with financial planning and running the business. Nedbank has built relationships with franchisees while helping to open and maintain their businesses.

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Company Posts

Muscle And Grill Is Your Daily Chef. We Provide Fresh, Nutritional Food At Affordable Prices

It isn’t always easy to stay in tune with both body and mind. We do all the prepping for you so that you can keep up your pursuit of greatness.

Muscle and Grill

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Vital stats

Muscle and Grill is a healthy fast food establishment based in South Africa. In the face of modern South Africa, lives spent on the go require a fuel to match their aspirations while maintaining a delicious, fast and fresh service.

As our lives swirl into life’s vast depths of opportunity, our bodies are often the product of poor health habits, while trying to keep on the move to achieve our goals. Muscle and Grill challenges this. We want to be able to support the South Africa of tomorrow by offering the food your body needs to keep reaching new heights – to keep pushing the boundaries of accomplishment with health food convenience.

At Muscle and Grill we’ve got you covered. We provide nutritional fast food that is fresh and affordable. We have your health at heart. You could start your day off with some free-range scrambled eggs or fresh oats – for lunch a mixed bowl of rice, protein and fresh vegetables – or to round off your day, replenish your mind and body with a hearty health-infused burger and all its wholesome goodness. We have not forgotten that home constitutes a hungry family who have all been active, so grab a lean beef pasta salad with some greens on the side to go.

Related: SA Fast Food Franchising On The Rise

It isn’t always easy to stay in tune with both body and mind. We do all the prepping for you so that you can keep up your pursuit of greatness.

About us

It was once said that great ideas are born from ones’ frustrations. That is exactly how Muscle and Grill came about. Having no real on-the-go option to stay healthy, or having the time to prepare to be healthy, became a huge frustration for us. We struggled to find enough hours in the day to keep up with a busy lifestyle and still eat healthy while on the move. Our work came first and our lifestyles suffered.

The vision for Muscle and Grill is to make it possible to stay healthy on the go. We want healthy food to be easily accessible for all walks of life.

Our mission is to provide quality, healthy fast-food. The food we provide is delicious and will keep you coming back for more.

Concept

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Muscle and Grill works on an almost self-service basis. The point of sale system is customer operated where you can select what meal you would like to have. Once payment has been processed electronically the kitchen staff will receive the order and prepare it to spec. Muscle and Grill will be a completely cashless business, making it super-efficient for consumers and business owners.

Related: 3 Crucial Considerations For New Multi-unit Franchisees

The concept of Muscle and Grill is partnered with Puré Frooty. Puré Frooty is a self-service smoothie bar which prepares smoothies for you at the touch of a button. You can have a store with or without a machine – the choice is yours. Both concepts look to promote the idea of healthy living on the go.

We’ve looked to compliment our values by looking after that which grounds us. Our packaging and utensils are all eco-friendly, as we believe ‘going-green’ is not just a choice of eating but of the environment too.

So, when you are ready to join the next revolution in the fast food industry contact Muscle and Grill at info@muscleandgrill.co.za or visit the website at www.muscleandgrill.co.za to inquire on our franchise options today. Achieve your goals, stay on the move and look after yourself through Muscle and Grill.

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Company Posts

Nando’s Is Firing Up The East

Carlos Duarte has been part of the Nando’s brand since inception. When his brother Fernando co-founded the flamed grilled chicken brand in 1987, Carlos soon participated in its success and today owns four highly successful franchises in Johannesburg — three in the east and one in the south. Here’s how it all began.

Nedbank

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Vital Stats

  • Player: Carlos Duarte
  • Franchise: Nando’s
  • Position: Franchisee
  • Visit: www.nandos.co.za

What were you doing before becoming a franchisee?

I was in the audio visual technology field, as an employee. Then I joined Nando’s as an assistant manager in the Savoy and Rosettenville corporate stores. Franchising was my first experience of entrepreneurship.

Why did you decide to become a franchisee?

When my brother, Fernando Duarte, launched Nando’s in 1987, I noticed its quick growth and wanted in on the action. Being assistant store manager prepared me for when the opportunity to run my own store came along soon after.

What prompted you to partner with Nando’s?

I joined Nando’s in 1991 as a joint venture partner. At the time, Nando’s hadn’t yet franchised its operations, and the JV partnership meant the brand owned 51% of the business, while I owned 49%. My first franchise store was in Edenglen in 2001.

Related: (Watch) Why Nando’s Is Clucking Its Way To The Top

Describe some of the challenges of running not one, but four franchise locations

At the Edenglen store, we initially battled with sales and getting feet into the store. To be honest, I think the area was overtraded at the time, so it wasn’t the best location. Since acquiring the store in Lambton, Germiston, another in Greenstone and a third in Comaro, I’ve learnt to be cleverer in how I do things — and how I handle some of the same challenges — and learn every day from the brand itself.

Name some of the benefits you’ve experienced as a Nando’s franchisee

Nando’s is 31 years old this year. We’re in 30-odd countries worldwide with thousands of stores across the globe. As franchisees, we leverage off the dynamism of an operational business that’s known for its marketing — customers talk about our ads and they love our food.

What kind of support do you receive from Nando’s as a multi-unit franchisee?

Besides the popular marketing campaigns that attract customers, Nando’s has an extensive training manual along with a skills development training consultant who comes to the store for two days to help staff understand and implement it. The training is really effective — it has to be as this industry involves a very high turnover of staff and new skills need to be taught often.

Why is it important for a franchisee to have a good banking partner?

As a franchisee, your bank should understand your business — from operating costs, to overdraft needs and revamping expenses — so it has cash available for loans that can be approved quickly, with minimal hassle. On the technical side, a reliable mPOS device is imperative, especially for us, because 30% of our sales volumes are from home and office deliveries. It’s a fundamental method of payment every bank should provide its customers of a similar nature.


What advice do you have for budding franchisees on seeking out a good franchise brand and banking partner for their business?

  • Do your research to ensure you’re partnering with a brand that is established, well-known and expect to pay a fair price for that franchise.
  • Be aware of how the franchise brand is perceived in the market and what location opportunities are available to you as a franchisee.
  • Choose a banking facility that always has the funds available to grow your business.
  • Ensure the bank understands the brand’s business model and where you’re falling short.

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