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TASTE HOLDINGS LIMITED - Voluntary notification of funding opportunities for new franchises

Release Date: 31/07/2013 12:00
Code(s): TAS     PDF:  
Wrap Text
Voluntary notification of funding opportunities for new franchises

TASTE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/002239/06)
JSE code: TAS
ISIN: ZAE000081162)
(“Taste”)


VOLUNTARY NOTIFICATION     OF   FUNDING   OPPORTUNITIES   FOR   NEW
FRANCHISES

Brimstone Investment Corporation Limited (“Brimstone”), Taste
and Nedbank Limited (“Nedbank”) today announced a landmark
agreement that will facilitate funding for 50 new franchisees
to open The Fish & Chips Co. outlets. The Fish & Chips Co. is
a franchise brand owned by Taste that last year alone created
over 1000 new jobs through the opening of over 100 new
outlets.     Brimstone is a Black-controlled and managed
investment company with key interests in the food, financial
services and healthcare sectors.

Brimstone is a shareholder in both Taste (12.53%) and Nedbank
(0.75%).

The initiative aims to provide competitive funding for
potential franchisees who, under normal circumstances, would
not have access to a bank loan or the required security to
acquire such a franchise.

This funding will facilitate the introduction of new entrants
into a successful business model, reduce the risk of failure
for   new    entrepreneurs,    create  new   sustainable   job
opportunities and, through extensive training, transfer skills
over the long-term.        Franchisees meeting the qualifying
criteria require a substantially reduced equity investment (of
approximately 20% of the total set-up cost), with the balance
of the total set-up costs (including working capital) being
funded by Nedbank at similar interest rates as if the
franchisee did have security.

This unique funding arrangement has been made possible through
a combination of Brimstone providing a guarantee for certain
of the obligations of the franchisee; Taste providing its
franchise systems and continuous oversight; and Nedbank
providing funding and financial training for the franchisee.


Johannesburg
31 July 2013
Sponsor
Vunani Corporate Finance

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