#SAFranchiseFriday featuring Oasis Water

BACKGROUND

Oasis Water was established in response to the growing global need for a reliable clean water source, a fact that has enabled them to expand their footprint across South African borders into Botswana and Namibia.

Oasis offers would-be franchisees a viable business opportunity that will allow them to also make a positive difference in their community. By using the public distribution system as its water supply, Oasis Water is able to keep material and purification costs to a minimum, resulting in a truly viable and attractive franchise opportunity.

THE CONCEPT

In terms of the franchise agreement, Oasis Water franchisees are granted a controlled right to trade under the Oasis trademark, using the franchisor’s proven system. The franchise package comprises everything needed to establish the franchise and the franchisor provides continued assistance to inexperienced business owners as they learn the ropes of running a successful business.

Oasis Water is not your average drinking water — it is oxygenated, purified drinking water. Endorsed and recommended by medical practitioners, homeopaths and natural healers, Oasis Water has been shown to be highly beneficial to people who suffer from a range of common ailments including asthma, arthritis, high blood pressure and migraines to name but a few.

With a range of high-quality, affordable and environmentally friendly products that fulfil the needs of various markets from households and corporates to retail chains, Oasis franchisees are able to tailor-make solutions for the various markets they serve.

Site selection is a crucial component for the success of an Oasis outlet. Franchisees are charged with identifying at least two potential sites that will be subjected to a viability assessment conducted by the franchisor before site approval is granted.

Initially, two employees will be sufficient for a store, but this will change as the business grows.

FRANCHISOR SUPPORT

In addition to training, marketing and advertising, the franchisor provides advice and assistance with applying the standardised business system. The franchisor conducts regular site visits to ensure that they are able to identify areas where franchisees may require additional assistance. 

The initial 3-day training covers all the aspects of running a successful business. Two  days are dedicated to theoretical training and one day is devoted to on-site training.

Marketing is an integral part of any business and while franchisees benefit from the exposure generated by the franchisor’s national and regional marketing and advertising initiatives, franchisees are responsible for running their own local area marketing initiatives. 

FRANCHISEE PROFILE

As a small business owner you must possess the skills required to oversee the general day-to-day running of the business, including HR management, operational management, strategic management, marketing management and financial management. 

SNAPSHOT
History
Founders: Naas du Preez, Koos de la Rey & Arthur Clarke
Year founded: 2003
Area of origin: Emalahleni, Mpumalanga
CEO: Mynhardt Oosthuizen

Network
1st SA franchise opened: 2003
Number of SA outlets: 255

Financials
* Amounts quoted are VAT exclusive
Average set-up cost: R540 000
Initial joining fee: R165 000
Average monthly turnover: R120 000
Achievable gross margins: 50% to 60%

Franchise Agreement
Management fee: 0.0756 cent per litre purified
Marketing fee: 0.029 cent  per litre purified
Agreement term: 5 Years
Renewal term: 5 Years

WANT TO KNOW MORE?
Contact Toni Nelson on +27 12 807 7085 or execpa@oasiswater.co.za
www.oasiswater.co.za