How De Graaf Under-Car Started In the past De Graaf Exhaust Systems allowed stockists of our products to use the name "De Graaf" at free will. Although it seemed a good idea at the time, in practice this never worked, because some outlets did the name proud and others not. As a result of this, market trends and at several of our customer's requests it was decided to form a separate company called De Graaf Under-Car. In June 1999 an independent franchise was formed and registered, known as De Graaf Under-Car.   Why the name De Graaf Under-Car? In the early years exhaust fitment centres only fitted exhaust systems, but increased competition over the years changed this trend and more and more fitment centres were compelled to diversify into other product lines. Through the years De Graaf Exhausts Systems has built up a well-known brand name, but the name was mainly associated with exhaust systems. Although exhausts still form a major part of a fitment centre’s sales, to compete in this market it is vital to fit and supply a bundle of products. It was then decided that a different name was needed so that the consumer could associate the fitment centres with other products besides exhausts, yet maintain the advantage of the De Graaf brand name associated with exhausts, hence the name Under-Car.   Why Franchising was decided upon? At the end of 1998 a meeting was held with several of our independent customers to determine whether or not franchising “De Graaf” should be considered. It was also realised that independents had a distinct disadvantage to Franchised outlets. At the end of this meeting a vote was cast and there was an overwhelming response in favour of franchising.   The Reasons why Franchising was decided upon:   Become part of a family where all members work together for the good of all   Establish a standardised corporate identity associated with a high level of customer satisfaction   Benefits of group buying   National/Regional advertising   Being part of a group but retaining your independence   The right to use a well known Brand Name "De Graaf"   A recognised brand name associated with other products besides exhausts   Establish a company associated with quality products and good service and later National warranties   Duplicate a successful blueprint/formula   The Company we keep De Graaf Under-Car is associated with several well-known and trusted brand names like: De Graaf Exhausts, Gabriel Shock Absorbers, Dixon and Atlas Batteries, Hankook Tyres, Towmaster Towbars, Bullbars and Rollbars, Economic CV’S and Ferodo and Safe Line Brake Pads   Membership Status FASA De Graaf Under-Car Franchise is a full member of FASA (Franchise Association of South Africa).   Overview De Graaf Exhaust Systems Freek De Graaf introduced the De Graaf Exhaust Systems into the automotive market more than 40 years ago as an exhaust fitment centre come exhaust manufacture of their own brand. Due to popular demand they were later encouraged to start manufacturing exhaust systems for other fitment centres. They manufactured small runs and special orders.  The demand for the De Graaf exhaust grew every year and by 1983 the son of Freek, Bert De Graaf separated manufacturing and the exhaust fitment centres (at this stage totaling three exhaust fitment centres). The new factory was situated in Hermanstad, Pretoria. Through the successes of the manufacturing plant, personnel and loyal customers, in 1990 larger premises were acquired. Today De Graaf is a full scale manufacturing concern for the exhaust after market. They also manufacture exhausts for performance, commercial, industrial, agricultural and aeronautical use. De Graaf stands proud to the fact that it is now one of the largest exhaust manufactures in South Africa and distributes exhausts to more than 450 exhaust fitment centers through out South Africa and employs over 60 permanent staff members. De Graaf is also exporting exhausts to Botswana, Zimbabwe, Namibia, Swaziland, Mozambique and Zambia. More recently our products are exported to Europe and the United Kingdom. Our feelers are now out in the U.S.A. De Graaf is now a large organization requiring extensive controlling, planning and co-ordination to keep production and marketing running according to the market demands and company's goals. Every effort is made to keep abreast of manufacturing and marketing trends now and into the future.   Franchisor Obligations ·        Managing the franchise office and ensuring that corporate identity and service levels are upheld ·        Initial training and hands-on support in running your business ·        Serves as an mediator between Supplier/s and Franchisees ·        Spread of geographical coverage of the Franchise ·        Supplier negotiations and agreements ·        Ensuring loyalty to the nominated suppliers (agreed upon by the franchisees) ·        Building brand awareness ·        Arranging annual general meetings   Profile of an Ideal Franchisee The success of the De Graaf Under-Car Franchise is reliant on the total support and commitment of the Franchisees. The De Graaf Under-Car Head Office will constantly strive to improve the purchasing arrangements on behalf of the Franchisees. By the same token, Franchisees must be totally committed and support all nominated suppliers. This in turn will give us the muscle to negotiate with the suppliers for improved supply arrangements on an ongoing basis in future. So, before you make a decision to become a Franchise, ask yourself the following questions: ·        Am I self motivated? ·        Am I a team player? ·        Do I want to be successful ·        Am I aware of my strengths and weaknesses in business? ·        Do I have a passion for the under-car fitment industry? ·        Can I give positive input?   Setting-up costs Depending on the size and nature of the outlet setup costs can vary from as little as  +/-R350 000 to +/-R550 000 depending on the town and area and services offered. The Franchise manager will involve himself in all details with the Prospective Franchisee to determine the necessary costs needed to set up the Franchise. Although it is preferable to purchase new equipment, De Graaf Under-Car does not have a problem with good used equipment being purchased.   Finance Prospective Franchisees must be in a position to finance the Franchise. This could be partly with your own capital and partly with raised capital (e.g. loans, bank overdraft, trusts, etc). A safe guideline is for the Prospective Franchise to invest a minimum of 50% their own capital before arranging any additional finance. De Graaf Under-Car will not consider a prospective Franchisee (except for the exclusion of an existing business) if the prospective Franchisee cannot prove that he/she has a minimum of R200 000 in cash and can raise finance for at least another R200 000.   Joining Fee An up-front fee of R12000-00 excluding VAT is applicable.   Monthly Royalty Monthly Royalty fee of R1250 to R1500. This will depend on the number of workstations. Suppliers rebates to Head Office on purchases paid for in full.   Distribution De Graaf Exhaust Systems has grown over the last three years from the fifth largest to the second largest exhaust manufacturer in South Africa and currently is the fastest growing exhaust manufacturer in South Africa with 10 distribution warehouses across the country located in: Pretoria Boksburg Edenvale Randburg Polokwane Lichtenburg East London George Cape Town Gaborone More warehouses will be opening soon.   For more information about Undercar franchising Contact:  Johan Visser   083 468 3420  Nic Wilson      072 171 9037  Go To Top