Welcome to Mr Kruger 01 A GOLDEN FRANCHISE OPPORTUNITY. A Golden Franchise Opportunity. Mr. Kruger Franchise Prospectus

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1 EVERYTHING GOLD

2 Welcome to Mr Kruger A Golden Franchise Opportunity 01

3 A Golden Franchise Opportunity South Africa has a long association with gold much of our country s early prosperity was founded on this precious metal, and it has been estimated that some 40% of all the gold ever mined was extracted from the Witwatersrand Basin. Johannesburg is a city that is quite literally built on gold. Becoming a Mr Kruger Franchisee enables you to play your part in the story of gold in South Africa, and to unlock the inherent value in what is potentially an extremely profitable long-term business. 03

4 The desire for gold is the most universal and deeply rooted commercial instinct of the human race. GERALD M. LOEB 05

5 Introduction to Mr Kruger Mr Kruger is a successful gold exchange business, founded in The performance of the first Mr Kruger-branded outlets has clearly demonstrated that in the prevailing market conditions, there is a real need for the services we offer. In the face of a continuing erosion of faith in paper currencies, gold represents not only an ideal hedge against falling currency values and rising inflation, but also an outstanding business opportunity for the right Franchisee. As a Mr Kruger Franchisee, operating a reputable gold exchange business with the backing of a powerful, established brand, you will be well placed to profit from investor behaviour whether gold is being bought or sold. 07

6 Nature of the Mr Kruger business As a gold exchange, Mr Kruger trades in gold bullion (in the form of Krugerrands), recycled gold, recycled platinum, recycled silver, numismatics and jewellery manufacturing and refashioning, with both retail and wholesale clients. SOUTH AFRICAN MINT O F F I C I A L P A R T N E R 09

7 The Mr Kruger Service Offering Our consumer and investor services portfolio is based on empowering people to realise the value (and growth potential) inherent in gold. There are 4 key pillars to the Mr.Kruger business model Our principal business is the buying and selling of gold and other precious metals, whether in the form of bullion (typically represented by Krugerrands) or jewellery. As a gold exchange, we enable people to translate faded sentimental value into cash by purchasing gold jewellery and other items. We can then either remodel this into newer, unique and more on-trend designs, or recycle it. Every transaction we enter into is determined by the current price per ounce of gold and other precious metals, bringing a transparency to the business and offering our customers a refreshing certainty. We offer Krugerrands for sale, and a secure storage service to our customers, underlining the soundness of the investment they have made. KRUGERRAND INVESTMENTS JEWELLERY MANUFACTURE GOLD EXCHANGE FOR CASH NUMISMATICS & COLLECTABLES Our free, no-obligation evaluation service is just one of many factors that clearly distinguish Mr Kruger from some of the other players in the market. We also deal in numismatics and collectables, enabling people to realise the value in inherited but unwanted jewellery, coins and medals, and assisting collectors in locating sought-after items. 11

8 The opportunity As a Mr Kruger Franchisee, you will enjoy several distinct advantages. You will gain access to a proven business model with clear revenue streams and which is largely insulated from the fluctuations of national economies and currencies. People are increasingly looking to convert legacy gold into cash, and to invest in safe havens of which gold has always been the most secure of all. The fear of crime and an aversion to conspicuous consumption mean that people are looking for better ways to invest, without attracting attention to themselves. Gold s enduring allure, value and physical properties make it the ideal commodity on which to build a sustainable business. Put simply, there is a significant and growing demand for the services you will offer as a Mr Kruger Franchisee. 13

9 No other commodity enjoys as much universal acceptability and marketability as gold. HANS F. SENNHOLZ 15

10 Why become a Mr Kruger franchisee? As a Mr Kruger Franchisee, you will benefit from an exceptionally well-supported business opportunity, backed by a superb reputation. Credibility is the golden thread that runs through our business, and will support yours. 1. Prior to, and throughout, your time as a Mr Kruger Franchise: A genuine Franchise investment opportunity with a proven business model and strong revenue streams; A strong, recognised brand which has recently been refreshed and updated to give it broader appeal, and increased visibility. Enhanced status as an Official Partner of The South African Mint; a Member of the Jewellery Council of SA; and a Member of the South African Association of Numismatics Dealers. Exactly the kind of prestigious business that the landlords of high-end malls are keen to attract; A rigorous Franchisee selection process, ensuring the integrity of the brand and its operations; The full support of the Franchisor at every stage of the process of becoming a Franchisee; The Franchisor s extensive experience and deep expertise; Assistance with selecting optimum premises for your Mr Kruger Franchise operation. A detailed, five-year Franchise Agreement as evidence of the franchisor s long-term commitment to your Franchise, and belief in your ability to make a success of it; A detailed Disclosure Document. 17

11 Gold is forever. It is beautiful, useful, and never wears out. Small wonder that gold has been prized over all else, in all ages, as a store of value that will survive the travails of life and the ravages of time. JAMES BLAKELEY 19

12 SOUTH AFRICAN MINT EVERYTHING GOLD We Buy Your Old Gold We Sell Krugerrands We Design Jewellery O F F I C I A L P A R T N E R SOUTH AFRICAN MINT O F F I C I A L P A R T N E R mrkruger.co.za As a Mr Kruger Franchisee, you will enjoy: An industry-leading code of ethics; Rights to a Territory around your Mr Kruger Franchise premises. EVERYTHING GOLD Use of the Franchisor s proprietary marks and complete corporate identity, including all business logo elements; SOUTH AFRICAN MINT O F F I C I A L P A R T N E R WE RECYCLE OLD GOLD My old jewellery was never going to be in fashion. Mr.Kruger paid me cash for it. Now that s definitely in fashion! EVERYTHING GOLD SOUTH AFRICAN MINT O F F I C I A L P A R T N E R Promotional support from the Franchisor, including marketing, advertising and brand awareness building; Access to the distinctive business system developed by Franchisor and conducted under the name of Mr Kruger. Comprehensive Operations & Procedures Manual Ongoing theoretical and practical training for you and your staff. Shop 3, FinForum Centre, Cnr. Sefako Makgatho Drive & Dr. van der Merwe Road Magalieskruin, Pretoria Safe, honest, reliable The support of the Mr Kruger business infrastructure, including customised operational software to effectively manage your business. Mr Kruger would love to buy the jewellery you no longer like or wear, especially if it s gold. In fact, we are always on the look-out for unwanted gold that we can recycle. We offer a free evaluation on any items - we will assess the pieces and then, if you would like to sell them, we can assist you immediately. How does it work? Our transactions are transparent and professional. Within the comfort and privacy of our elegant premises, our scales are calibrated daily and your jewellery is weighed in front of you. Our strict code of ethics, a precedent for our company, ensures our clients are completely satisfied with the process and the result. When you bring in your jewellery you can trust you ll leave with that day s absolute and correct value of the items. We have no additional transaction costs or hidden fees either. KRUGERRAND INVESTMENTS JEWELLERY MANUFACTURE GOLD EXCHANGE FOR CASH NUMISMATICS & COLLECTABLES Shop 3, FinForum Centre, Cnr. Sefako Makgatho Drive & Dr. van der Merwe Road Magalieskruin, Pretoria EVERYTHING GOLD 21

13 As a gold exchange, we enable people to translate faded sentimental value into cash by purchasing gold jewellery and other items. The Mr Kruger Difference Unique selling points and touchpoints that clearly distinguish the Mr Kruger brand from other players in the industry; The fully committed backing of the Mr Kruger brand and the Franchisor. A history of successful Franchise operations. Clear, fair financial plans that set out your responsibilities, risks and rewards; A passion for the business that will match your own. 23

14 Your personal qualities as a Mr. Kruger Franchisee As a Mr Kruger Franchisee, you ll be expected to embody the ideals for which the brand is known. We pride ourselves on our strong code of ethics, and we cannot be induced to deviate from it. Our customers have come to expect the utmost levels of professionalism and discretion in all our dealings. Their trust has been hard-earned, and must be maintained. Mr Kruger is a customer-orientated brand. The successful Franchisee will have exceptional empathy and interpersonal skills, recognising that they will be engaging in transactions which may have significant emotional importance, quite apart from the monetary value. A Mr Kruger Franchisee will have following completion of their training, as provided by the Franchisor considerable expertise in precious metals, jewellery manufacturing, numismatics and collectables. They will be comfortable with offering a VIP experience to every Mr Kruger customer who enters their Franchise, and adept at gaining customers trust. They will project genuine professionalism, discretion, and trustworthiness that is, they will at all times prove themselves worthy of being a Mr Kruger Franchisee. 27

15 Applying to become a Mr Kruger Franchisee Applying to become a Mr Kruger Franchisee If reading this prospectus has given you a gleam in your eye, you may be exactly who we are looking for to expand the nationwide reach of the Mr Kruger brand. Please note that only serious applications will be considered. Every transaction we enter into is determined by the current price per ounce of gold and other precious metals, bringing a transparency to the business and offering our customers a refreshing certainty. An Upfront Fee of R will be required to be paid by the Franchisee to the Franchisor pursuant to the signing of the Franchise Agreement. In accordance with the terms of the Consumer Protection Act, R of this Upfront Fee (to cover the Franchisor s expenses, including opportunity costs) shall be considered as non-refundable once the ten-day cooling off period (from the date of signing of the Franchise Agreement) has expired. The entire purchase price of the Franchise shall be R , to include the R Upfront Fee, the balance of the R Purchase Price (i.e. R ) and R proven Initial Operating Capital. 50% of this total amount needs to be available in unencumbered funds in order for the application process to commence. Serious potential Franchisees should contact the Franchisor using the following details: Postal Address: Postnet Suite #258, Private Bag x 504, Sinoville, Address: franchising@mrkruger.co.za Telephone Number:

16 I see a great future for gold and silver coins as the currency people may increasingly turn to when paper currencies begin to disintegrate. MURRAY ROTHBARD 31

17 EVERYTHING GOLD