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R25.5m boost for take-outs

Dec 11 2006 11:21 Tiisetso Motsoeneng

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Johannesburg - State lender, the Industrial Development Corporation (IDC), has pumped R25.5m into a wholesale loan facility to potential franchisees of Famous Brands (FBR) for the establishment of Wimpy, Steers, Debonairs Pizza and FishAways franchised stores under their Pro SME Job Scheme.

Loans ranging from R500 000 up to a maximum of R1.5m will be granted to approved candidates. Loan funding is for furniture, fittings, equipment and working capital, the two parties said in a joint statement

"Prospective candidates will be pre-screened by Famous Brands via the company's standard franchisee selection process, whereafter final selection will be made by the IDC. Consequently, Famous Brands is not liable to stand surety for the loans approved to franchisees by the IDC," the statement said.

Kevin Hedderwick, COO of Famous Brands, said the facility would help increase its franchise network from 15% of the total restaurant chains to 20% in the short term.

"This joint initiative with the IDC will go a long way towards providing previously disadvantaged candidates with access to a premium brand," he added.

 
 
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