Frequently Asked Questions
How does The Franchise Co. relate to Lanco?
The concept of The Franchise Co. was created from our sister company, Lanco, that’s been operating in the franchise industry for a decade. We are registered as Laudian Franchise Management One t/a The Franchise Co.
What does 64Sixty stand for?
The product name refers to our investors receiving a total of 64% return over a 60-month period. This translates to an annual rate of 12.8% before 20% dividend tax (administered by the company).
What are the minimum and maximum investment amounts?
The minimum investment amount is R1 000 000, and the maximum is R5 000 000, per investor.
What is the return?
We offer a fixed return of 12.2% per annum, paid monthly. At the end of the five year term, we also offer our preference shareholders an additional full term capital growth payout – which is calculated at 10% of your initial investment amount.
What is the investment term?
This investment opportunity spans a fixed period of five years.
What are my responsibilities?
This is a pure investment opportunity in a portfolio of diversified assets which is managed by a team of professionals. You have no responsibilities in terms of management or actual involvement in the franchises. However, you are expected to attend the annual shareholders meeting, where investment performance is discussed.
How long has the company been operating for?
Although we recently re-branded as The Franchise Co. when we opened our investment opportunity to the public, we have been operating for eight years.
Can I exit early?
You can exit at any time during the fixed five year investment period, by giving us 90 days’ notice. A 10% exit penalty will apply within the first 36 months of withdrawal. We exercise the first right of refusal when you sell your preference shares. We will assist you with selling your shares, if we don’t buy them from you.
Who is the Fund Manager of the product?
Finwel Financial Management Services is the Fund Manager. Finwel has a FSP CAT I & II Licence (#718) with the South African Financial Services Board.
Can I use the shares as surety against a loan?
Your preference shares are your assets. Utilising them as surety against a loan will depends on the financial institution you are applying with.
Do you buy franchise outlets that are in troubled waters?
Most definitely not. We only buy healthy, successfully operating businesses – based on a full due diligence. Potential franchises should proof above-average profitability and positive cash-flow projections. This is how we ensure the success of our business model.
Do you only buy existing franchises?
No, we also diversify our portfolio with the establishment of new outlets (of existing franchise brands) in prime locations across South Africa. Our future portfolios will also include offshore investment opportunities.
Who manages the projects & franchises?
Our in-house specialists have more than 100 years’ worth of experience in the acquisition and management of franchises. We ensure that the onsite franchise managers are skilled in their field and will positively influence the growth of the franchise. Our investors are not involved in the management or day-to-day operation of these businesses.
What happens should the company be liquidated?
We have tried and tested our business model well in advance of including the public as investors. Our company is stable and our franchises all perform above market average. However, in the event of liquidation, the unfinanced franchises in the previous and current portfolios will be sold, which should enable the refund of investors’ capital. Preference shareholders are first in line for payment, after creditors.
Why do you issue preference shares and not unit trusts?
Preference shares carry less risk and pay fixed dividend rate returns, over a fixed period. Unit trusts have no specific term or rate of return, and usually carry higher risk. Preference share are the preferred option for most investors.
What are the tax implications?
61Sixty is a tax friendly investment product. As the holder of preference shares, you receive your returns in the form of dividends, which is taxed at only 15% – much less than personal income tax.
May I invest capital on behalf of a business or third party?
Yes, you can invest as any entity – in your personal name, or as part of a partnership, company or trust.
What happens should I die?
Your preference shares will be treated like any other asset – which you should make provision for in your will. The investment will carry on for the remainder of the term and dividends will be paid to your beneficiary.
What are my options after the five year term?
The investment spans a fixed five year term, after which investors are bought out by the company, at their initial capital amount. Investors will have the opportunity to purchase preference shares in the consecutive portfolio(s).
Can I sell my shares?
As the holder of the preference shares, you can sell your pref shares at any time during the five year investment period.
How much are the fees?
We deduct no admin or commission fees. 100% of your capital is allocated to the acquisition of preference shares. You receive your dividend payouts on your full, initial investment amount.
What experience does The Franchise Co. have in terms of franchising?
Our staff members have been involved with various popular South African franchises (some since inception). As a company, we are widely recognised as franchise management specialists and are even endorsed by The Franchise Warehouse.
Are you FSB approved?
We market only our own product and preference shares of over R1 000 000. We are thus not legally required to be FSB approved. For the sake of transparency, we are registered as a representative of a registered FSP (Finwel Financial Management Services; FSB CAT I & II Licence #718) that is approved by the FSB.
Are you NCR registered?
We are not a credit provider. We are thus not required to be NCR registered.