Become a TaxBox Associate
TaxBox – Mentorship and Association Disclosure Document
"TaxBox” - the Taxco® associate…now YOU can provide accounting, tax and business solutions with the backing of professional accountants. We take the burden out of tax preparation – your clients just drop off their tax information at the TaxBox and you do the rest. The hassle free tax filing option!!!
Our Association Model
We are looking to recruit firms/associates with the necessary drive and ambition to run their own TaxBox accounting, tax and other business services business in the following metropolitan localities throughout South Africa:
Polokwane, Alberton, Germiston, Springs, Benoni, Boksburg, Brakpan, Roodepoort, Krugersdorp, Rustenburg, Rosebank, Vereeniging, Van der Bijl Park, Soweto, Johannesburg, Braamfontein, Sandton, Tswane, Potchefstroom, Welkom, Kroonstad, Harrismith, Sasolburg, Pinetown, Pietermaritzburg, Ladysmith, Newcastle, Dundee, South Coast, Ballito, Durban, Durban North,Umhlanga, East London, Port Elizabeth, George, Mosselbay, Knysna, Boland, Cape Town, Bloubergstrand, Bellville, Melkbos, Paarl, Kimberley, Thaba N’chu, Qwa-Qwa, Upington, Nelspruit
The overriding rationale is that new associates must not affect the profitability of existing associates whilst they themselves must be commercially viable. Our vision is to establish more than 100 TaxBox mentorship/associate agreements in the next few years.
Who are ideal TaxBox Associates?
This association is ideal for:
Accounting and tax firms
We are keen to talk to established accounting or tax firms who seek to be part of a larger group who wish to grow their business and have easy access to a vast wealth of knowledge while being part of a well established, recognised and respected brand. A special tailor-made solution will be designed for each association member firm, with the added benefits of joint sales, marketing, and training, proven operational methods and procedures and branding at a reduced association fee.
Individuals experienced in accounting and tax
Individuals whom are experienced in accounting or tax or accounting graduate candidates wishing to start their own business with a recognised brand and who would not otherwise have had access to the resources and expertise of an established accounting and tax firm, with the added benefit of being their own boss.
Any person who identified a definite need for accounting, tax and business services in his area and who has the entrepreneurial skills to manage, obtain the necessary skilled personnel to run a professional services business.
Franchising in South Africa
The success of franchising is based on the premise that most people will find it a lot easier to build a new business under the guidance of an established organisation, using proven methods and procedures, rather than by trial and error. Initial and ongoing training, the use of a well-known trademark, access to joint advertising and purchasing and a host of support services, typically offered by the franchisor, are just some of the advantages associates enjoy.
The success of every association operation rests upon exact duplication of the franchisor's “blue print”, in other words, every associates will be expected to operate a carbon copy of the franchisor's original business. Individuals who thrive on "doing things their own way" are unlikely to be happy as associates. Bill Cherkasky, a past president of the International Franchise Association (IFA), said that " perhaps franchising is not perfect, but it is the best method known to mankind to put people with no prior experience into a business of their own and help them to succeed." As with most things in life, careful preparation and meticulous execution is the key to success. Within a relatively short period, modern-day franchising, more fully described as "business format franchising", has evolved to become the most popular business concept ever created.
Essentially, franchising is a marketing and distribution system. It has its roots in the United States, where it has been in evidence since the early 1950's and now commands a market share approaching 50% of all retail sales. Although other parts of the world lag somewhat behind, franchising is well established in every free market economy across the globe, and with good reason. Statistics show that the chances to succeed of any small business operated under a association are infinitely higher than those of a business that is operated by an entrepreneur in isolation. South Africa has a vibrant association sector and one just needs to consult the yearbook of the Franchise Association of Southern Africa (www.fasa.co.za) to see that a large number of divergent business concepts, many of which have become household names in their own right, are operated under association.
The share of the South African retail market held by franchising is estimated to be around 12% and growing rapidly, thus indicating enormous potential for future growth.
The Government and Franchising
Growing at a heady 30%-35% annually, SA's burgeoning, R34bn a year franchising industry, has caught government's eye as a possible source of wealth and job creation. Government has entered into a "crucial partnership" with NAMAC and other private sector institutions such as FASA and banks to support and promote franchising. The sector seems to have the answers to at least one of SA's socio-economic problems – the need to create tens of thousands of jobs. And fast. Apart from its propensity to create and retain jobs, business format franchising - which not only includes the product, service and trademark, but also the entire business concept of the franchisor - boasts a low failure rate.
The secret to this success is that the association operator uses a proven concept namely It’s brand, proven products and services, quality control and marketing procedures. Statistics show that the failure rate of associations set up by established businesses is about 5%.
There are more than 30 000 association outlets in operation in South Africa. Taken at a conservative 15 direct and indirect jobs per association, that equals more than 450 000 jobs. No wonder a 30%-35% annualized industry growth rate, coupled with a low failure rate, stands out in a country facing 35%-40% unemployment. As a result, the Department of Trade & Industry (DTI) has concluded that part of the solution to SA's unemployment crisis can be found in franchising.
With SA now being one of the fastest-growing association economies in the world, franchising offers exciting opportunities for entrepreneurs. Government therefore intends developing a comprehensive strategy of support for the sector, including financial and non-financial support services and a new regulatory environment for franchising.
If you want to find out if franchising is really for you, we suggest you visit South Africa’s number one website for free association information and advice at www.whichassociation.co.za. You can research the ins and outs of franchising and also take a “Franchise Self-Test” and then talk to us to become a full Taxco® franchisee.
The ideal TaxBox Associate in our opinion should have the following personal attributes:
- Strong personal drive with a desire to succeed and to fulfil your dreams.
- Passionate about owning your own business and being hands on.
- A good communicator with a high level of integrity.
Strong sales skills.
This means the ability to get potential customers to see the benefit of your products and service offerings and to conclude the deal.
Good interpersonal skills.
You will be selling a professional service offering to owners of a business or senior decision makers within an organisation as much as dealing with the commission and salary earning employee.
Your clients are from all walks of life and with varying levels of income demanding different levels of maintenance. You need to be PC literate and understand basic computing. Our training will give you the necessary expertise and skills in all the different tax, accounting and business offerings etc. Good team leadership skills whilst paying attention to detail. This entails being able to lead your teams, set deliverables for them and ensure that they are met, by organising, prioritising and executing actions timeously.
Share our passion for running a professional service business to clients who will be owners of small businesses, so it is therefore imperative you have a working knowledge of small business management.
Software and other training will take place at Taxco Head office. However, empathy with small business owners and exemplary sales skills are difficult to learn. You will need to be able to talk to people and be able to get them to understand what is available and what is required.
As a bookkeeping and tax associate, you will need the desire to assist small-to-medium business owners because they will be asking you many questions. The ability to be well-presented is a must, not to mention confidence. Age is not a barrier, however the more experience you have in the corporate and small business sector, the better.
Experience as an accountant is not essential to run your own TaxBox. Taxco Head office will back you up, but you will need to know the importance and the meaning of the numbers you will sell and advise.
Taxco® is a registered trademark and is owned by GR8 Business Trust IT434/01 trading as Taxco® Accountants and Tax Consultants (Head office), a specialist tax accounting firm. It was the name of the original business entity, a partnership founded in 1991, on which the franchise and association group is modelled. Use of Taxco® branding is exclusive to Taxco® franchisees, not associates.
You, the associate can opt to use the standard “TaxBox” branding and logo or use any other brand name in conjunction with other words to better describe your business in your area, or any other unique attributes of your business i.e. Cape Town TaxBox, Tshabalala TaxBox Accountants, TaxBox Tax Specialists or Consultants, TaxBox Tswaranang or TaxBox Business Services to name but a few. The mentor is in no way prescriptive in the use of your business name, only to the extent that fully fledged Taxco® Franchisees may only use of the Taxco® branding.
The TaxBox branding is meant for the fast, efficient, no hassle SOHO (Small –Office-Home-Office) tax service type enterprises, and the Taxco® branding for the more professional, corporate type offices. All TaxBox Associates and Taxco® franchisees may make reference to being a Taxco® Member Firm.
Range of Services
Over the years Taxco's® service offering has increased tremendously and now these services are offered to clients nationwide within the framework of an association model. Taxco® offers clients a range of services to meet their accounting, tax and other business requirements. The packaging of our services offering ensures the full spectrum of client accounting, tax and other business requirements are met, and irrespective of the size of a client, Taxco® has a solution. The services offered on the Taxco® website make up our service offering.
Compliance and Good Governance
Taxco® understands the requirements and pressure on compliance and good governance of our clients, and is here to address the needs for compliance as well as increasing the productivity of our clients. Taxco® do this by offering solid, affordable business services by providing an outsourced service that make good business sense.
Each association is an individual business, managed by the business owners, with their own specialist disciplines, client bases and territories, being responsible for maintaining a superior standard of service delivery compared to the industry standard.
All the associates are trained, accredited and certified by Taxco® Head office, which is an SAIPA accredited training centre. This ensures the associates is able to provide consulting, operational, and infrastructure services in the
accounting, tax and various other business fields.
For more information about the corporate profile of Taxco®, the trustees, member firms, services, mission and goals refer to the “About us” section of the Taxco® website.
Demand for Tax Services
In a developing country such as ours, tax services have become a growing requirement within South Africa due to the emergence of a new middle class, stricter enforcement policies of SARS and the simple fact that tax is expensive and cannot be treated lightly. Tax laws further change every year and keeping up to date is difficult for taxpayers and SME’s alike, and then combined with the fear of making a mistake due to harsh penalties, including imprisonment, it all adds up to not only create a demand for professional tax services, but in fact makes it a necessity.
Why own a “TaxBox” association?
Standing at the forefront of tax accounting, the TaxBox associates provides vendor-independent, best-of-breed customized tax, accounting and business solutions and is modelled on a highly successful accounting and tax firm, which has been in operation for over 20 years. Taxco® offers a turnkey solution to its associates, where they provide outsourced services to their clients through an established process.
Peace of mind is offered when starting your own business as the TaxBox associates is further backed up by Professional Accountants (SA) who are knowledgeable about our industry and international best practices to help you take full business advantage of the best and most suitable tax, accounting and business solutions on offer today. Smaller accounting and tax firms are now able to network with similar firms, whilst keeping autonomy and reaping the benefits of being part of a larger group.
South Africa has a huge emerging taxpayer market and our service offerings are specially targeted at providing an inexpensive, efficient and professional business and tax service to the growing number of small business owners and taxpaying employees.
Taxco ® Head office (Bloemfontein) provides centralised sales, service delivery and fulfilment, technical and operational support and business coaching to the association network, assisting the associates to work on growing their businesses ra ther than concentrating on the ordinary routine tasks inside of it.
A countrywide network in South Africa with experienced and certified professionals and consultants and a full service offering in all accounting, tax and other business solutions sets Taxco® apart from its competitors and enables associates to access a wide a variety of clients, fields and markets.
The association and mentorship model further allows our experienced tax professionals, who are committed to assisting associates, to offer their expertise and personal service on a much broader scale via associates at a location convenient to taxpayers. Associates on their part can now access Taxco's ® vast amount of experience and have access to tax research materials gathered from many sources over the past 20 years. Taxco® professionals strive to offer the very best service and are constantly updating their tax knowledge to ensure that every tax return prepared by the associates are correct and to the best tax consequence for the taxpayer.
No matter how simple or complex a tax return - even if it involves negative geari ng, capital gains or business income - we help you to take advantage of the current tax laws for your client to legally minimize the tax payable and to maximize refunds at competitive rates.
Taxco® further has solid partnerships and correspondent firms expanding its services and has a strong working relationship with Softline Pastel, Vanilla Payroll, Eminent Wealth Insurance Brokers, FNB Instant Accounting, Investec Private Bank, Nedbank Corporate Saver, ESET, MAC Designs, Sable Document Imaging, Evo Bond originators, Gerber Junius Attorneys, CIPC and SARS for the associates to draw on.
We continually research new business opportunities and add these to our accounting, tax and financial service offering which translates directly into increased revenue for the associates, which may not have been possible for the smaller firm.
The value of owning the TaxBox brand in a certain area will most definitely increase as the brand and services offering grows throughout South Africa and becomes the household brand for the accounting and tax service company of choice.
The Typical TaxBox Association – A Taxco® Member Firm
The typical TaxBox associates will start as a 1 or 2 owner business with eventual employment total of up to 4 hands-on staff, operating a 30-50 m² Small Office Home Office (SOHO) space close to a varying range of taxpayers near dense business parks, large government or other office blocks and shops.
It is envisaged that the TaxBox association commences business as a single person operation – either with an owner manager or with as an investor with a association manager. Functions of this person will include marketing, consulting, production, filing, technical, system analysis and bookkeeping for the first several months of operation.
The equipment required by the associate is a laptop, printer- fax-scanner combination, software and remote server access for templates, manuals and backups. By month 6 the association will appoint a receptionist/clerk, and by month 8, depending on the number of monthly and annual clients, will necessitate more clerks to ensure effective service delivery.
Word of mouth advertising is your best advertising and the owner/manager will now be dedicated to sales and marketing activities, while keeping a strict eye on production and quality control.
The TaxBox associates delivers services and monthly aftercare services to SMME’s, commission earners and other salaried employees. It further offers the full range of specialist and other professional services via the National Taxco ® Head office, other Taxco ® associations and Taxco® approved business associa tes to increase its own revenue stream on a referral or joint venture basis.
A TaxBox Association may at anytime convert to a Taxco® Franchise, should it qualify to do so, and vice versa.
Prospects and Financial Information
The TaxBox revenue model is geared towards the building up of a recurring revenue stream ensuring the continued sustainability of the associates. This revenue model is established and has been refined over several years of business.
Bookkeeping and Tax Services is the core product offering and taxpayer’s and SMME’s primary reason for approaching us. This provides a once-off take on fee and a recurring monthly or annual fee depending on the type of client. The once-off fee covers a consultancy service of analyzing the client systems and processes and setup of computer software to suit the client’s needs. The monthly or annual recurring fee covers the cost of time spent on the client’s affairs, continued advice, processing of information and completion and submission of VAT and Income tax forms. At an agreed frequency the client’s records will be processed according to the client requirements. The basis of the solution will be to reduce cost, improve efficiencies and enhance compliance and manage business continuity risks.
Financial statements are often only an annual revenue opportunity. A client will request the compilation of financial statements, usually due to legislative prescriptions or as a requirement of finance applications. Associates not qualified to draw up the financial statements in terms of IFRS or any other required reporting standard will be assisted by an appointed Taxco® Franchisee in the area or Head office on a joint venture and case to case basis as the circumstances may dictate. Responsibility will be shared for the collating and processing of information, the compilation of the statements and the consulting and distribution thereof thereafter.
Contract, Forms and Letter templates are supplied to the associates at start-up and sold to clients directly at a suggested retail price or applied for own use. The templates cover a wide range of topics and situations and have many different applications. Taxco® continually update these templates to accommodate changes in legislation or circumstance and is provided on a as-and-when basis to associates. The cost of operational material is included in the monthly management fee.
TaxBox associates are empowered to market our franchisees and business partners value-added products and services i.e. Pastel software, Vanilla payroll, Eset anti-virus or insurance products of Eminent for their own account. The margins will however be taken into account for the calculation of monthly turnover.
Head office’s written permission is required should the associates wish to market, deliver or sell a product or service not otherwise provided by the Taxco® Group.
Training as a revenue stream is showing significant growth and associates charge for these services on a basis of time spent or value added as agreed with the client. Irrespective of whether an organisation out-sources or retains accounting and tax activity in-house, training is required for the client processing staff, users of the information and management as our industry is forever evolving and tax laws and processes change regularly.
Associates Revenue Model Projections
No specific revenue models are provided as the services delivered and expenses incurred are uniquely of a personal nature and vary with the work ethic, training, experience and size of the practice of the associate. Taxco® provides a backup service to associates and do not guarantee or warrant any income or any new business. Each associate must define and calculate his own expected revenue or income dependent on the needs of the associate or investor.
Associates should consider their own recurring revenue model as this provides sustainability of the association. Once a client is taken on and operational on the core products, and the service is delivered in accordance with the expectations of the clients, the recurring revenue model should continue.
The recurring revenue model also provides the flexibility to the owner of the associates to decide on their own growth model – this model is dependent on the desired lifestyle of the association owner. The projections below factor in very conservative client acquisition levels.
Prospective associates should note that the prospects and figures quoted herein are projections based on previous experience and in no way guarantee future performance levels. No specific or exact revenue models are provided as the services delivered and expenses incurred are uniquely of a personal nature and vary with the skills, training, experience and size of the practice of the associate. Taxco™ provides a backup service to associates and do not guarantee or warrant any income or any new business. Each associate must define and calculate his own expected revenue or income dependent on the needs and work ethic of the associate or investor.
It is our estimate that the monthly Turnover for the ideal TaxBox association with (2-4) personnel would be in the region of R60,000. The estimated Net Income based thereon should be between R20 000 to R30 000 per month as fixed base costs of the premises and personnel may vary. It is up to the franchisee to determine if the monthly revenue is realistic and achievable by the franchisee in his area and as monthly and annual clients grow how this income will grow exponentially. The recurring revenue component of overall revenue will steadily become a higher percentage of the overall revenue generated as time goes on.
The core product of the TaxBox associate is the take-on and on-going tax and bookkeeping services to SME, corporate and large organizations. The core product provides the key recurring revenue model to ensure sustainability and growth of the franchisee. The revenue projections combine core product service delivery and the other revenue streams of the franchisee.
An estimation of projected Income can look as follows:
|Days in Month||Ave price per Service||Services per day||Estimated Monthly Revenue|
Pre-requisites for TaxBox Associates
No formal tax or accounting qualification or training is required. Only a basic working knowledge of computers, email and spreadsheets programs is required.
Individuals must meet the required tax practitioner registration standards. We will assist the associates with registration in this regard.
Taxco® recommends that you have an accounting qualification or tax background or employ the necessary skills to operate the association effectively.
Pre-requisites for Taxco® Franchisees
Proof of being a practicing member of one of the following professional governing bodies is required: ICB, SAIPA, ACCA or SAICA. The associates are required to strictly adhere to the rules of such governing body.
Associate’s Investment - TaxBox
Capital charge - (Once off – License fee, this secures your pre-defined area): R30,000.00 VAT Inclusive. Incentives are available for purchasing an additional TaxBox association outlet -preference is further given to current association or franchisee holders.
IMPORTANT: You would further at least need to have the following:
- TaxBox marketing material – Shop front design and signage, where applicable, Posters, Brochures, Leaflets, Business Folders and Business cards.
- Top of the range business Laptop with Printer/Fax/Scanner/Copier
- Accomodation in Bloemfontein during training
- Initial working capital required for personal and business expenses as required by the associate
Taxco® will supply you with the following:
- Advice and assistance with the purchase of the above
- Setup of TaxBox customised taxation software
- Assistance with purchasing Sage Pastel Partner Site Software license
- Taxco® manuals, working standards information kit, contract templates
- Sales and product training in Bloemfontein - 3 Days
- Computer setup of one computer with Microsoft office
- Installation and setup of Pastel and Tax software
- Pre-designed forms, letters and templates, including electronic letterhead
- Tax practitioner and SARS efiling registration assistance of the associate
- Exclusive @taxcotrust managed email address with web mail access
- Fax to email number
- Website exposure for the associate
Ongoing monthly fees – 10% Excl. on Turnover
Monthly fees payable to Taxco®: 8% management fee (covers service updates, administration and same business day telephonic and online support) and a 2% website usage and update and national marketing fee (does not include local or regional advertising which is for associates own account) and is based on the association turnover exclusive of Vat. This marketing fund is kept in a separate fund and the franchisor has full discretion as to the strategy and operational activities thus conducted. The associates is encouraged to provide ideas as to the optimal use of the marketing fund.
Included in the association package is an electronic letterhead for the associate to customize as well as an electronic logo and illustrations for the associates to assist him with the sign writing and branding of his office. The associates decides from where he wishes to operate and grow his business and this may include: A shop-style office or kiosk in a business complex, a suite in an office block, an office at home or other premises as he may choose. It is in the discretion of the associates to equip and brand his office. Our recommendation is that the associates secures a accessible place where the clients can comfortably visit and consult and the TaxBox brand name is visibly displayed, although this is not a pre-requisite.
Securing suitable premises would normally entail the signing of a lease agreement with a landlord and although we may give advice in this regard, it is the sole responsibility of the associates to ensure that he is aware of all the legal and financial implications thereof.
The associate will be responsible for his own working capital which may vary from area to area and includes marketing, rent, salaries, telephone and printing expenses. We suggest that an associate compiles a budget, calculates a break-even point and provides sufficient financing for at least six months in this regard to ensure that personal and business costs are covered.
Additional training will be charged at R1550 per person per day, a customised training package is available for associates to train additional staff members in specific areas of expertise. (Above excludes meals, travelling and accommodation).
On the approved sale or transfer of his right, title and interest in his association of a association outlet in a designated area, such a notification of cession shall be accompanied with a payment by the associate of R10,000 excl. (ten thousand rand) to Taxco®, before the effective date of the purported sale, which amount shall be utilised by Taxco® to properly train and establish the new owner of the association. Taxco® has a first right of refusal to purchase this association.
We do not provide direct financing or furnish any security to associates. Taxco® will assist with applications for finance in the form of the provision of core information about the TaxBox association for inclusion in his application, it is up to the associates to make his own informed judgements and decisions on the different purchasing and financing options.
Various financial institutions with a varying degree of security and BEE requirements make funding available for the purchasing of an association and these include:
First National Bank, a division of FirstRand Bank Ltd
They have innovative and tailor-made solutions to make your association dream a reality which include Biznetwork, a networking platform, FNB Instant accounting, online and cell phone banking, asset and vehicle finance. Contact details: Email them at email@example.com or visit www.fnb.co.za
Khula Enterprise Finance Limited
Its role is to maximise finance for SME’s in a way that leads to the development of sustainable small and medium businesses, job creation, economic growth and equity. Previously disadvantaged communities and a bias towards woman empowerment is the preferment. Contact details: Email them at firstname.lastname@example.org or visit ww w.khula.org.za
The Small Enterprise Development Agency (Seda Business Start)
An agency of the South African Department of Trade and Industry whose mission is to develop, support and promote small enterprises throughout the country, ensuring their growth and sustainability in co-ordination and partnership with various role players. To this end it offers SMMEs advice, counselling, mentorship, guidance and access to vital contacts through its nationwide network of 9 provincial offices other district branches, mobile units, Enterprise Information Centres and Technology Incubators across the country. Contact details: Email them at email@example.com or visit www.seda.org.za
Before you decide to finance your business refer to our Business Guides on Financing. Please contact us should you require any additional information in this regard.
Training and Support
Taxco® places a strong emphasis on having qualified consultants and all associates will receive local and internet-based training to become fully proficient in making their business a success. Once set up, they will receive ongoing service and technical support necessary to secure new business and to increase margins and success.
Initial training is provided to the associates at our head office in Bloemfontein for 3 days. The scope of the training covers all the services that TaxBox/Taxco® offers, use of the practice manuals, the tax and accounting software and includes pricing and practice management. The associate’s laptop computer is also setup during this time.
Additional training to partners and employees of associates on specific topics can also be provided on a pre-arranged basis, normally at R1550 per day, excluding travelling, accommodation and/or meals. (Max 2 persons per session). Normally an associate would train his own staff based on the start-up training he received.
To assist you to start to run a successful TaxBox association we have incorporated some unique and innovative components into the package: -
- Access and implementation of a successful business model with a recurring revenue stream.
- Training and certification by Taxco® Head office in Bloemfontein.
Business mentoring sessions via the internet for the initial 3-months by a business consultant to review performance, growth opportunities, identify and solve areas of improvement and to assist with the general running
- Customised hardware and software to enable the association to commence with the tax, accounting and business services.
- Same Business day telephonic and email support for all circumstances and situations.
- Quality reviews
Getting started with your TaxBox association
Once you have read the Franchise Agreement and you are in acceptance thereof:
- Complete and submit TaxBox Association application to Taxco Head office
- Head office accepts application in writing (Valid for 14 days)
- Submit signed Association Agreement with Capital charge payment
- Pay balance within 30 days thereafter
- Book training for Taxco system, Softline Pastel and Tax software
- Receive training and bring computer equipment for setup
- Secure suitable premises in the designated area
- Brand and equip the premises
- Do marketing
Start trading after payment of all fees and training
Important Caution Notice - Important Caution Notice - Important Caution Notice
The purpose of this disclosure document is to assist the potential associate to decide whether this unique tax business opportunity is for him/her. Whilst it describes certain aspects of franchising or association forming, you are strongly advised to also rely on the advice contained in the many books on the subject written by experts in the field and available from FASA (The Franchising Association of Southern Africa).
You are further encouraged to conduct the necessary research in making your decision, seek assistance from other accountants and other financial expertise and then discuss the association agreement with your attorney to make an informed decision.
Note: You should have received and scrutinized this disclosure prospectus at least fourteen days before signing the association- or any other binding agreement.
Should you consider there to be an opportunity for you to become a part of the TaxBox association network complete the application form or contact Mr Pierre Goosen at our National Head office in Bloemfontein. His telephone number is (051) 447 0825/7, or firstname.lastname@example.org for email contact.
Taxbox Application Form
28 kB | Download
TaxBox Mentorship and Association Agreement
161 kB | Download
See the FAQ (Frequently asked questions) on Taxco Franchising.
- How do I apply for a Taxco Franchise?
- Where do I find the Taxco Franchise proposal?
- How long does the application process take?
- What do I get for my money?
- What is the initial deposit amount?
- What size area will I get?
- How many people can I bring for training?
- What training will I receive?
- Can the Franchise purchase amount be financed?
- What experience do I need to operate a Taxco or TaxBox Franchise?
- How much money will I make?
- How long does it take to open a Taxco Franchise?
- Will I need employees? If so, how many?
- How much cash will I need to cover running expenses?
- How does the Royalties work?
- What other Head office costs are charged?
- When, where and how was Taxco established?
- Do I need a specific type of office?
- What about other services I aleady offer?
- What head office support will I receive?
- What is Taxco's long term vision?
How do I apply for a Taxco Franchise?
After you have read our Franchise proposal and have considered your options carefully, we would gladly like to hear from you. The next step is to complete the Franchise application and submit it to us.
Where do I find the Taxco Franchise proposal?
Full details about the Taxco Franchise is detailed under the Resources Tab. Click HERE to go directly to the Franchise Disclosure document.
How long does the application process take?
Taxco has designed a mutual investigation process to determine if Taxco/TaxBox and the potential franchisee/associate are a good fit. Apart from the general background and credit checks, we participate in a series of informative discussions with the applicant that will illustrate the strength and value of the Taxco/TaxBox organization and franchise opportunity. The process starts immediately on receipt and we will let you know within 10 business days if your application was successful or not.
What do I get for my money?
Taxco Franchisees receive the following:
- Designated area exclusivity
- Taxco™ marketing material – Shop front design, branding, 5 Posters, 1000 Brochures, 10000 Leaflets, 500 Business Folders and 1000 Business cards
- Top of the range business Laptop with Printer/Fax/Scanner/Copier
- Taxco® customised taxation software – Individuals and trusts
- Softline Pastel Partner software site licence
- Installation and setup of Pastel, Tax software and Microsoft office for franchise
- Pastel Partner - Taxco® standard company setup template
- Taxco® manuals, working standards information kit, contract templates
- Pre-designed forms, letters and templates including electronic letterhead
- Exclusive @taxcotrust managed email address with web mail access
- Fax to email number
- Sales and product training in Bloemfontein - 5 days
- SA travelling for training attendance, meals and accommodation in Bloemfontein for 5 days
- Tax practitioner and SARS efiling registration assistance
- Website exposure for the franchise
TaxBox Associates receive the following:
- Advice and assistance with the purchase computers/equipment and other software
- Customising of the TaxBox taxation software - Individuals and trusts
- Assistance with purchasing a Sage Pastel Partner software site licence
- Installation and setup Microsoft office on one computer
- Pastel Partner - A TaxBox standard company setup template
- TaxBox manuals, working standards information kit, contract templates
- Pre-designed forms, letters and templates including electronic letterhead
- Exclusive @taxcotrust managed email address with web mail access
- Fax to email number
- Sales and product training in Bloemfontein - 3days
- Tax practitioner and SARS efiling registration assistance
- Website exposure for the association
What is the initial deposit amount?
The initial deposit is always 50% of the total Capital charge amount. This deposit is non refundable and is required to secure a specific area and to consumate the agreement.
What size area will I get?
The size area will be dependent on the location and estimated client numbers.The overriding rationale is that new franchisees and associates must not affect the profitability of existing franchisees/associates, whilst they themselves must be commercially viable.
How many people can I bring for training?
The complete training cost of the applicant member is included in the capital charge. We will however train one additional staff member at the same time for free. The travel, accomodation and meals for this person is for their own account.
What training will I receive?
The structured training program includes:
Taxco Office Manual - Processes and procedures (Personnel, Production, Administraton, Infrastructure, Quality control)
Tax software - Installation, setup and use
Pastel Partner - Installation, Setup of Taxco designed standard set of accounts, Processing procedures
Marketing - List of services, Suggested Pricing
Can the Franchise purchase amount be financed?
Yes, the prospective member can approach external commercial banks and financiers who specialise in franchise and small business financing to finance the cost and working capital requirements of the franchisee or associate. The decision to finance or not lies with the prospective member and we urge you to take make an informed decision after the necessary investigation and research. Taxco does not provide direct finance, but we can assist the prospective member with additional information to support his application for finance. Before you decide to finance your business refer to our Business Guide on Financing. Please contact us should you require any additional information in this regard.
What experience do I need to operate a Taxco or TaxBox Franchise?
TaxBox Associates - No formal tax or accounting qualification or training is required. Only a basic working knowledge of computers, email and spreadsheets programs is required. Individuals must meet the required tax practitioner registration standards. Taxco® however, recommends that you have an accounting qualification or tax background or employ the necessary skills to operate the association effectively.
Taxco® Franchisee - Will have a formal qualification in accounting or tax and are practising members of the ICB, SAIPA, ACCA or SAICA and wish to make use of the benefits of being part of a recognised and respected accounting and tax services brand.
How much money will I make?
The beauty of owning your own business is that you control your own success. As a Taxco or TaxBox franchise/association owner, you have many built-in advantages in today's marketplace, including a pent up demand for our unique service offerings. Our support systems and programs have proven to be successful in the past twenty years. However, the financial return you will realize as an owner depends on how well you perform and follow the systems provided to you. Your success will also depend on circumstances including local economics and costs, competition, and how aggressively you market yourself and your business.
We encourage you to speak with our other franchisees or associates to learn about their experience and satisfaction with the Taxco or TaxBox brand, including the financial performance of their own businesses. By speaking with franchisees, you will be able to better understand the potential of the business and what is necessary to be successful.
How long does it take to open a Taxco Franchise?
Once a franchise agreement is signed, it usually takes approximately 30 days. This depends largely on the office location that is identified and the setup time required.
Will I need employees? If so, how many?
Yes. Initially, an franchisee/associate will typically have one to two part-time or full-time staff members to help with the operation of the practice, depending on time of year and volume. As the business grows, and as you build a customer base, more employees and staff will be necessary. A typically one owner location has two to four full-time staff members, including the franchisee.
How much cash will I need to cover running expenses?
The franchisee or associate will be responsible for his own working capital which may vary from area to area and includes marketing, rent, salaries, telephone and printing expenses. We suggest that the member compiles a budget, calculates a break-even point and provides sufficient financing for at least six months in this regard to ensure that personal and business costs are covered.
How does the Royalties work?
Taxco's royalty, which covers the ongoing service and support from Taxco headquarters, is 8 percent (8%) of the gross sales of the business. Royalties give the franchisee and associate access to Taxco's service and support, other programs and product partners, which offer significant discounts, benefits and advantages.
The national advertising contribution is 2 percent (2%), which helps support a number of national advertising campaigns on an annual basis, as well as locator systems and other system-wide advertising, marketing and public relations initiatives designed to support the success of your Taxco franchise or TaxBox association.
Royalties are based on turnover net of VAT on a monthly basis calculated from invoices issued on their accounting software and or VAT returns submitted to SARS.
What other Head office costs are charged?
There are no other costs, except for Training, if required. Additional training will be charged at R1550 per person per day at Taxco head office. (Excludes meals, travelling and accommodation). Other customised training material and packages are available for members to train additional staff members in specific areas of expertise. Generally the member will train his own employees.
When, where and how was Taxco established?
Taxco started trading operations on 1 February 1991 at 1 President Brandstreet in Bloemfontein. Initially there were only two associate partners (Pierre Goosen and Kobus Spies) who joined their efforts and resources to deliver accounting services to clients. Their simple strategy of delivering honest best of breed accounting and tax services timeously to clients that make business sense, still lives on today.
Do I need a specific type of office?
The Taxco member decides from where he wishes to operate and grow his business and this may include: A shop-style office or kiosk in a business complex, a suite in an office block, an office at home or other premises as he may choose. It is in the discretion of the member to equip and brand his office. Our recommendation is that the associates secures a accessible place where the clients can comfortably visit and consult and the Taxco or TaxBox brand name is visibly displayed, although this is not a pre-requisite. Electronic Branding templates are provided.
Securing suitable premises would normally entail the signing of a lease agreement with a landlord and although we may give advice in this regard, it is the sole responsibility of the member to ensure that he is aware of all the legal and financial implications thereof.
What about other services I aleady offer?
Yes, but you would require head office approval. Refer to the Taxco Product Partner section of our website. We are always on the lookout for new services and products. Once approved, we could offer the service nationaly via the Taxco member firms.
What head office support will I receive?
Taxco head office assists members with telephonic and email queries. Peace of mind is offered when starting your own business as the Taxco® Franchisee and TaxBox associate is further backed up by Professional Accountants (SA) who are knowledgeable about our industry and international best practices to help you take full business advantage of the best and most suitable tax, accounting and business solutions on offer today.We provide you with the necessary information to assist you to service the client. Services you may not be qualified for can be performed on your behalf on a agreed fees basis.
What is Taxco's long term vision?
We continually research new business opportunities and add these to our accounting, tax and financial service offering which translates directly into increased revenue for the Franchisee, which may not have been possible for the smaller firm. The value of owning the Taxco® or TaxBox brand in a certain area will most definitely increase as the brand and services offering grows throughout South Africa and becomes the household brand for the accounting and tax service company of choice.