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Become a Taxco Franchisee

Taxco® – The Taxco® Franchisee Disclosure Document

Taxco® franchise…now YOU can provide accounting, tax and business solutions with the backing of registered professional accountants. We take the burden out of tax preparation – your clients just drop off their tax information at Taxco and we assist you to do the rest. The hassle free tax filing option!!!

Our Franchise Model

We are looking to recruit firms/franchisees with the necessary drive and ambition to run their own Taxco® 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, Soweto, Johannesburg, Braamfontein, Sandton, Tswane, Potchefstroom, Welkom, Kroonstad, Harrismith, Sasolburg, Pinetown, Pietermaritzburg, Ladysmith, Newcastle, Dundee, South Coast, Ballito, Durban, Durban North,Umhlanga, East Londen, Port Elizabeth, George, Mosselbay, Knysna, Boland, Cape Town, Bellville, Wynberg, Paarl, Kimberley, Thaba N’chu, Qwa-Qwa, Upington, Nelspruit.

Available Franchise Areas

The overriding rationale is that new franchisees must not affect the profitability of existing franchisees whilst they themselves must be commercially viable. Our vision is to open more than 100 Taxco® outlets with double the number of smaller TaxBox  associates, supporting the Taxco franchisee in the next few years.

Who are ideal Taxco® franchise operators?

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 franchised member firm, with the added benefits of joint sales, marketing, training, proven operational methods and procedures and branding at a reduced franchise fee.

Persons experienced in accounting and tax

Experienced persons 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.

Entrepreneurs

Any person who identified a definite need for accounting, tax and business services in his area and who has the entrepreneurial skills to obtain and manage 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 franchisees enjoy. The success of every franchise operation rests upon exact duplication of the franchisor's “blue print”, in other words, every franchisee 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 franchisees.

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 franchise are infinitely higher than those of a business that is operated by an entrepreneur in isolation. South Africa has a vibrant franchise 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 a franchise.

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 franchise 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 franchises set up by established businesses is about 5%.

There are more than 30 000 franchise outlets in operation in South Africa. Taken at a conservative 15 direct and indirect jobs per franchise, 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 franchise 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 franchise information and advice at www.whichfranchise.co.za. You can research the ins and outs of franchising and also take a “Franchise Self-Test”.

The ideal Taxco® Franchisee 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 ations timeously.
  • Share our passion for running a professional service business.

Taxco®

TAXCO® is a registered trademark an is utilised under license by Taxco® Franchise Group Trust IT110/2011 for the establishment of a network of special tax accounting firms throughout Southern Africa. Taxco was the name of the original business entity, a partnership founded in 1991, on which the franchise group is modelled.

Branding

You, the franchisee can opt to use the standard Taxco® branding and logo or use the Taxco ® 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. Taxco® Accountants, Taxco® Tax Specialists or Consultants, Taxco® Tswaranang or Taxco® Business Services to name but a few. Use of the Taxco® branding is not compulsory.

The Taxco® branding can thus be adapted to suit the fast, efficient, no hassle SOHO (small -office -home -office) tax service type enterprises, or the more professional, corporate type offices. All Taxco® franchisees and TaxBox associates make reference to being a Taxco® Member Firm.  

Existing accounting firms can therefore keep their existing branding with only reference to being a Taxco® member firm. This practise however is not encouraged and these members may have increased branding costs.

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 a franchise 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 in this website make up our service offering. See the complete services offering under the Services tab.

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.

Separate Businesses

Each franchise is an individual business, managed by its business owners, with their own specialist disciplines, client bases, territories and work ethic, being responsible for maintaining a superior standard of service delivery compared to the industry standard.      

Training

All the franchisees are trained, accredited and certified by Taxco Head office, which is an SAIPA accredited training centre. This ensures the franchisee is able to provide consulting, operational, and infrastructure services in the accounting, tax and various other business fields. Franchisee training is overseen by a FASSET registered moderator ans assesors.

Corporate profile       

For more information about  the corporate profile of Taxco®, the trustees, member firms, services, mission and goals refer to the"About Us" section page of this 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 Taxco® franchise?

Standing at the forefront of tax accounting, the Taxco® franchisee 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 it’s franchisees, where they provide outsourced services to their clients through an established process.

Peace of mind is offered when starting your own business as the Taxco® franchisee 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 tax paying employees.

Taxco Head office (Bloemfontein) provides centralised sales, service delivery and fulfilment, technical and operational support and business coaching to the franchise network, assisting the franchisee to work on growing their businesses rather 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 it's competitors and enables franchisees to access a wide a variety of clients, fields and markets.

The franchise model further allows our experienced tax professionals, who are committed to assisting franchisees, to offer their expertise and personal service on a much broader scale via franchisees at a location convenient to taxpayers. Franchisees on their part can now access Taxco’s vast amount of experience and have access to accounting and tax research materials, templates and guides 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 franchisee are correct and to the best legal tax consequence for the taxpayer.

No matter how simple or complex a tax return - even if it involves negative gearing, 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 it's services and has a strong working relationship with Softline Pastel, Vanilla Payroll, Emminent Wealth Insurance Brokers, FNB Instant Accounting, Investec Private Bank, Nedbank Corporate Saver, Ooba Bond Originators, ESET, MAC Designs, Sable Document Imaging, CIPC and SARS for the franchisees 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 franchisee, which may not have been possible for the smaller firm.

The value of owning the Taxco® 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 Taxco Franchise (Full Franchise) – A Taxco Member Firm (Qualified individuals)

Generally a Taxco® Franchise will be one or more franchisees, who 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.

It is a requirement that the Taxco franchise will operate from a professional office, in-line and within the professional standards, rules and regulations as stipulated by the applicable institute or professional body, the Department of Labour and approved by Taxco Head office.

The professional Taxco® franchise would generally require more personnel an equipment than the smaller TaxBox associate office. Taxco® does not have an one-size-fits-all approach and every franchise will be assisted and tailored to suit the area it is operating in.

Taxco head-office will provide guidance to Taxco® franchisees with the help of a qualified moderator and assessors to assist them to run their practices within the required guidelines set down by their governing body, prior to any monitoring visits of the institute.

The Taxco franchisee on the other hand will further assist and deliver services to smaller TaxBox associates on a mutually beneficial basis in his area, if any, as well as the full spectrum of Taxco services to it’s clients within the Taxco network, where it has the authority of the applicable governing professional body and legislation to do so.

A Taxco Franchise may at any time convert to a TaxBox Franchise, should it qualify to do so, and vice versa.

Prospects and Financial Information

The Taxco® Franchise revenue model is geared towards the building up of a recurring revenue stream ensuring the continued sustainability of the franchisee. 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. Franchisees 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 or Head office on a joint venture 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 franchisee 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 franchisees. The cost thereof is included in the management fee.

Franchisees are empowered to market our associates and business partners value-added products and services i.e. Softline Pastel software, Training, Vanilla payroll, Ooba bond originating, Eset anti-virus or insurance products of Emminent for their own account. Franchisees will deal directly as value added re-selers of the various products and services. Only the margins, not the sale value, will be taken into account for the calculation of monthly turnover.

Head office’s written permission is required should the franchisee wish to market, deliver or sell a product or service not otherwise provided by the Taxco Group. Franchisees are encouraged to source good value products for distribution by the group.

Training as a revenue stream is showing significant growth and franchisees 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. Income from training will depend on the expertise of the Franchisee, which in turn is gained by experience or formal training.

Franchisee Revenue Model Projections

Revenue models have been based on a typical franchise as described above.

Variations of the franchise model are expected dependent on the needs of the franchise owner or investor. The revenue projections can be adjusted if variations of the typical franchise model are required.

Expected incomes and business targets

It is important to spread the Franchisee’s financial risk by combining different but complimentary revenue streams that must contribute to cash flow. These include making money by:

Services:

  • Take-on fees
  • Annual and monthly Bookkeeping or Processing fees on Softline Pastel or MS Excel
  • Payroll processing
  • Completion of Monthly Tax Returns (Vat/Emp/SDL/Uif/)
  • Completion of Six Monthly Returns
  • Completion of Annual Tax Returns
  • Ad hoc Forms (Claims/Bank Questionairs/Attorney confrmations)
  • Financial statements
  • Budgets and Cash flows


Product Sales and Referrals:

  • Contracts/Templates
  • Insurance – Short term
  • Insurance – Long term
  • Software (Pastel/Eset/Payroll)
  • Sable scanning services
  • TaxBox Online Data Storage
  • Outsourced work to/from Head office/Member Firm
  • Debt counselling references
  • Consulting and Advice

    The recurring revenue component of overall revenue will steadily become a higher percentage of the overall revenue generated.

Profitability

The franchise business is structured as an owner (manager) run business model. This allows for low-cost operation and therefore low risk. This maximizes the profit opportunity for the franchise and the return on investment.

Operating Expenses

Included in the franchisee's financial projections he should take a holistic view of his operations and include the following operating expenses:

  • Advertising
  • Bank charges
  • Cleaning
  • Communication Cost - Telephone & fax
  • Computer expenses
  • Depreciation
  • Franchise support fees (10%)
  • Insurances
  • Members/ Managers salary
  • Motor vehicle expenses
  • Printing, stationary & postages
  • Rentals
  • Staff Salaries & wages
  • Other – Provision

Sustainability

The recurring revenue model provides sustainability of the franchise. Once a client is installed and operational on the core product, 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 Franchisee to decide on their own growth model – this model is dependent on the desired lifestyle of the franchise owner.

The projections below factor in very conservative client acquisition levels.

Prospective Franchisees 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 franchisee. Taxco™ provides a backup service to franchisees and do not guarantee or warrant any income or any new business. Each franchisee must define and calculate his own expected revenue or income dependent on the needs and work ethic of the franchisee or investor.

It is our estimate that the monthly Turnover for the ideal Taxco® Franchise with (2-4) personnel would be in the region of R100,000. The estimated Net Income based thereon shoud be between R30 000 to R50 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.

Revenue

The core product of the Taxco franchise 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:

Projected revenue

Days in MonthAve price per ServiceServices per dayEstimated Monthly Revenue
20350856 000
203501284 000
20500880 000
2050012120 000
207508120 000
2075012180 000

Profitability

The franchise business is structured as an owner (manager) run business model. This allows for low-cost operation and therefore low risk. This maximizes the profit opportunity for the franchise and the return on investment.

Pre-requisites for Taxco Franchisees

Professional Taxco® Franchisees

Proof of being a practicing member of one of the following professional governing bodies is required: ICB, SAIPA, ACCA or SAICA. The Franchisee is required to strictly adhere to the rules of such governing body and assistance will be given to the Franchisee by pre-monitoring advice and guidance.

Franchise Cost / Investment

Capital charge - R80,000 Vat Inclusive (Once off – Franchise license fee, this secures your pre-defined area)

Incentives are available for purchasing an additional Taxco™ franchise outlet -preference is further given to current franchise members.

The Capital charge includes the following:

  •     Pre-defined area exclusivity
  •     Top of the range business Laptop with Printer/Fax/Scanner/Copier
  •     Taxco® marketing material – Shop front design, 5 Posters, 1000 Brochures, 10000 Leaflets, 500 Business Folders and 1000 Business cards
  •     Taxco® manuals, working standards information kit, contract templates
  •     Sales and product training in Bloemfontein - 5 Days
  •     SA travelling for training attendance, meals and accommodation in Bloemfontein for 5 days
  •     Computer setup of one computer with Microsoft office
  •     Installation and setup of Pastel Accounting Partner software
  •     Installation and setup of Taxco customised Tax software
  •     Pastel Taxco standard company setup
  •     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 franchisee
  •     Assistance with Tax practitioner and SARSefiling registration of franchisee

Ongoing monthly fees – 10% Excl. on Turnover

Monthly fees payable to franchisor: 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 - for franchisee own account) and is based on the franchise  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 franchisee is encouraged to provide ideas as to the optimal use of the marketing fund.

An annual fixed fee with limited telephonic and online support and "Pay per use" option, is also available for the more established franchisees.

Other

Office

Included in the franchise package is an information package and illustrations for the franchisee to assist him with the sign writing and branding of his office. The franchisee 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 franchisee to equip and brand his office. Our recommendation is that the franchisee secures a accessible place where the clients can comfortably visit and consult and the Taxco® brand name is visibly displayed, although this is not a pre-requisite.

Securing a 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 franchisee to ensure that he is aware of all the legal and financial implications thereof.

Working capital

The franchisee 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 a franchisee 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.

Training

Additional training will be charged at R1550 per person per day, a customised training package is available for franchisees to train additional staff members in specific areas of expertise. (Above excludes meals, travelling and accommodation).

Transfer/Sale

On the approved sale or transfer of his right, title and interest in his franchise of a franchise outlet in a designated area, such a notification of cession shall be accompanied with a payment by the franchisee of R20,000 (twenty thousand rand) VAT excl. to the franchisor, before the effective date of the purported sale, which amount shall be utilised by the franchisor to properly train and establish the new owner of the franchise. The franchisor has a first right of refusal to purchase this franchise.

Financing

We do not provide direct financing or furnish any security to franchisees. Taxco® will assist with applications for finance in the form of the provision of core information about the TaxBox/Taxco® franchise for inclusion in his application, it is up to the franchisee 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 a franchise and these include:

First National Bank, a division of FirstRand Bank Ltd

They have innovative and tailor-made solutions to make your franchise 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 franchising@fnbcommercial.co.za or visit www.fnb.co.za

Khula Enterprise Finance Limited

It’s 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 helpline@khula.org.za or visit www.khula.org.za

The Small Enterprise Development Agency (Seda Business Start)

An agency of the South African Department of Trade and Industry who’s 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 info@seda.org.za or visit www.seda.org.za

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.

Training and Support

Taxco® places a strong emphasis on having qualified consultants and all franchisees 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 franchisee at our head office in Bloemfontein for 4 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 franchisee’s laptop computer is setup at the same time.

Additional training to partners and employees of franchisees on specific topics can also be provided on a pre-arranged basis, normally at R1250 per day, excluding travelling, accommodation and/or meals. (Max 2 persons per session). Normally a franchisee would train his own staff based on the start-up training he received.

To help you start to run a successful Taxco® franchise 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 via the internet for the initial 6-months by a business consultant to review performance, growth opportunities, identify and solve areas of improvement and to assist with the general running of the franchise.
  •  Customised hardware and software to enable the franchise to commence with the tax, accounting and business services.
  •  Business day telephonic and email support for all circumstances and situations.

Getting started with your Taxco® franchise.

Once you have read the Franchise Agreement and you are in acceptance thereof:

  1. Complete and submit completed Online Franchise application to Head office
  2. Head office accepts application in writing (Valid for 14 days)
  3. Submit signed Franchise Agreement with Capital charge payment.
  4. Book training
  5. Receive training and computer equipment, software and setup
  6. Secure a suitable premises in the designated area
  7. Brand and equip the premises
  8. Do marketing
  9. Start trading

Services

The view a complete list of services that you will render via the TaxBox/Taxco® franchise network Taxco services

Important Caution Notice

The purpose of this disclosure document is to assist the potential franchisee to decide whether this unique tax business opportunity is for him/her. Whilst it describes aspects of franchising, 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 franchise 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 franchise- or any other binding agreement.

Should you consider there to be an opportunity for you to become a part of the TaxBox/Taxco™ franchise network complete the online application form or contact Mr Pierre Goosen at our National Head office in Bloemfontein. His telephone number is (051) 447 0825/7, or pierre@taxcotrust.co.za for email contact.

See the FAQ (Frequently asked questions) on Taxco Franchising.

  1. How do I apply for a Taxco Franchise?
  2. Where do I find the Taxco Franchise proposal?
  3. How long does the application process take?
  4. What do I get for my money?
  5. What is the initial deposit amount?
  6. What size area will I get?
  7. How many people can I bring for training?
  8. What training will I receive?
  9. Can the Franchise purchase amount be financed?
  10. What experience do I need to operate a Taxco or TaxBox Franchise?
  11. How much money will I make?
  12. How long does it take to open a Taxco Franchise?
  13. Will I need employees? If so, how many?
  14. How much cash will I need to cover running expenses?
  15. How does the Royalties work?
  16. What other Head office costs are charged?
  17. When, where and how was Taxco established?
  18. Do I need a specific type of office?
  19. What about other services I aleady offer?
  20. What head office support will I receive?
  21. 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.

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