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Annexure 1E:
The ACDC Express Prospectus
Annexure 1E:
The ACDC Express Prospectus
A GIANT IN THE ELECTRICAL INDUSTRY TAKES A STEP INTO THE WORLD OF
FRANCHISINGEstablished in 1984, ACDC Dynamics is the leading manufacturer, importer & distributor of quality products
in the electrical, pumps & tools industries. Manufacturing includes transformers, power supplies, electronic
timers, motor starters and power factor correction systems.
QUALITY PRODUCTS AND SERVICESIn 2007 the ACDC Franchise company was formed, as a retail extension of the already well-established
manufacturer, importer and distributor of quality electrical products, ACDC Dynamics. These franchise stores
were aptly named ACDC Express.
ACDC Express consists of independently owned electrical retail stores whose products are primarily sourced
from ACDC Dynamics and boasts a product range of over 60 000 individual items, that include security,
hygiene, automation, telemetry systems, pumps, switchgear and instrumentation, energy management and
power factor control, solar, tools, wiring and cable management, as well as a comprehensive range of lighting
products. We are stockists of premium brands such as Gewiss, Terasaki, Datalogic, C & S Electric, Rhomberg,
Weicon, Moël, Orbis and Oérre.
We specialise in the electrical sector, catering for the household (DIY), contractor, industrial, agricultural,
mining and manufacturer markets. ACDC Express is a unique retail store concept that offers a convenient and
versatile shopping experience, allowing customers to browse at leisure in an electrical ‘supermarket’. Our
highly experienced technical staff are able to offer innovative solutions tailored to suit the needs of our
customers. Their knowledge extends but is not limited to instrumentation, home and business automation,
sustainable energy solutions, agricultural tools and lighting.
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Annexure 1E: The ACDC Express Prospectus
The ACDC Express Prospectus
1
ORGANISTATION MISSION STATEMENTACDC Express endeavours to provide a complete range of electrical solutions, in the most convenient way
possible. We strive to continuously supply retail and industrial customers with practical and affordable
solutions to all their electrical needs.
The company is known for its premium brands and vast product range that allows ample choice for all
target markets.
Our principles are customer driven, as we constantly source the best products, at competitive prices.
The company philosophy stems from its family orientated history, which leads to employee and customer
satisfaction. ACDC regards itself as an ethically sound business, whose practice ensures that the highest
standards are maintained.
VISIONWe aspire to be the leading electrical retail franchise in Africa, where customers consider us first for top
quality products, excellent customer service, convenience and competitive prices.
CUSTOMER SATISFACTION“A sale is not something that you pursue; it is something that happens to you while you are
immersed in serving your customer.”
At ACDC Express we strive for service excellence. Our sales staff attend regular training sessions to equip
them with superior product knowledge and unrivalled customer service etiquette. The brand managers
and training facilitators at our Head Office work intensely on all aspects of the brands to ensure that our
sales staff are equipped with up to date information and an ability to provide excellent after sales services.
To extend our accessibility we offer direct communication lines to our customers via Facebook, Twitter
(@ACDCExpress) and our website www.acdcexpress.com. Our latest offerings and promotions are also
included in our newsletters. It is possible to subscribe to our exclusive subscription list through registration
on our website.
ACDC express is about being a one-stop shop, about competitive pricing, stock availability and preferential
supply, quality products all detailed in a fully comprehensive catalogue, online ordering, early opening for
early trade of the retail outlet and an established relationship with its customers.
The benefits sought after are advanced products, guarantees on the products, brand availability, the look
and feel, convenience, novelty, and technical know-how. ACDC Franchising undertakes to develop its
network of franchises and recruit and select the correct franchisees to grow the brand. Also, national
marketing will take place to create product and brand awareness, the best nominated suppliers will be
negotiated and approved for our franchise network, and we would also provide financial advice, keep you
up-to-date in terms of IT trends and advise you on ideal stockholding.
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About the ACDC
Express Franchise…
Annexure 1E: The ACDC Express Prospectus 2
JOB DESCRIPTION OF A FRANCHISEE• Management of staff – including HR/IR responsibilities
• Recruiting, appointing, training and motivating staff
• Assist and build relationships with customers
• Stock management
• Logistics
• Quality control
• Service and maintenance of the outlet
• Stock ordering and control
• System controls
• General business administration
• Legislative compliance (PAYE / UIF etc)
• Implementation of new franchise policies and procedures
• Reporting and administrative requirements of the Franchisor
• Business planning (forecasts, budgets etc)
• Financial management - cash flow & standard reporting
• Sales & marketing - including local area marketing
PERSONAL CHARACTERISTICS• Prepared to work very hard and work long hours
• Passionate, committed and dedicated
• Common sense and lateral thinker
• Specific attention to detail
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The following are descriptions and criteria to distinguish if you match the profile of the type of franchisee
we are looking forward to grow our franchise network along with us:
SKILLS• Financially savvy
• People skills (customers and staff)
• Communication, relationship, interpersonal and leadership skills
• Systems oriented
• Organised
• Computer literate
• Multi-tasking – operations and administration
• Sales abilities
• Management skills
OTHER POINTS• Practical business experience in electronics field
• Retail experience is preferable – understand stock management
• Unencumbered cash requirement
• Prepared to be an owner-operator - ideally not have other employment or other business interests
(at Franchisor discretion)
The Ideal Franchisee
Annexure 1E: The ACDC Express Prospectus 3
In terms of the franchise network and the Franchisor’s ongoing commitment to its network of growing
franchisees, ACDC Franchise will honor its obligations in the following manner:
• Recruitment and selection of franchisees.
• Approval of sites (approval of lease).
• Advisory role in terms of store set up.
• Provide project plan, site specifications and where applicable, preferred contractors.
• Training of the franchisee.
• Assistance with the initial recommended order.
a. Additional responsibilities to be taken care of by the franchisor:
The franchisor shall provide the franchisee with advice and consultation of the following:
i. Initial set-up requirements;
ii. Incorporation of the trade name and trademarks on stationary, uniforms etc.
iii. The location of the premises;
iv. Internal and external signage for the premises;
v. ACDC Franchise’s systems;
vi. The launch of the business whereby the cost will be incurred by the franchisee;
vii. Advice on the management and accounting aspects of the business;
viii.Advice regarding the layout, fixtures and fittings of the premises selection of equipment, and
computer hardware and software. The costs thereof is to be funded by the franchisee;
ix. ACDC Franchise undertakes to provide the franchisee and its staff with adequate training to
enable the staff to meet the requirements of the agreement and manuals.
Should certain parties not meet the required competency levels of ACDC Express it shall inform
the franchisee accordingly;
x. ACDC Franchise will provide the franchisee with a manual(s) specifying certain policies and
procedures the franchisee is required to adhere to in the management and operation of the
business.
ONGOING OBLIGATIONS OF THE FRANCHISOR TO ITS FRANCHISEES:
• Marketing.
• Building the brand.
• Ongoing training.
• Research and development.
• Sourcing new products.
• Approval of suppliers.
• Supplier quality control.
• Benchmarking on performance.
• Field service systems.
• Examine management accounts from the franchisees on a monthly basis.
• Communication: initiatives as specified.
• Systems development.
• Approval of local marketing initiatives.
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EBenefits of Being a Franchisee
with ACDC Franchising
Annexure 1E: The ACDC Express Prospectus 4
WHAT KIND OF SUPPORT WILL I RECEIVE?
EX
IST
ING
FR
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SOur Existing Franchises
ACDC EXPRESS BALLITO ACDC EXPRESS BLOEMFONTEINACDC EXPRESS BELLVILLE
ACDC EXPRESS POLOKWANE ACDC EXPRESS RUSTENBURG ACDC EXPRESS SOMERSET WEST
5Annexure 1E: The ACDC Express Prospectus
ACDC EXPRESS RICHARDS BAY
ACDC EXPRESS MIDDELBURG
ACDC EXPRESS PIETERMARITZBURG ACDC EXPRESS SECUNDA
ACDC EXPRESS STEELPOORT
ACDC EXPRESS CENTURION ACDC EXPRESS NELSPRUIT
ACDC EXPRESS STRIJDOM PARK ACDC EXPRESS STRUBENS VALLEY
ACDC EXPRESS LICHTENBURG
Annexure 1E: The ACDC Express Prospectus 6
Annexure 1E: The ACDC Express Prospectus
The franchisee selection process is detailed and thorough simply because we want to be sure that we have
recruited the right personality to join our franchisee network and also to help us grow the ACDC Express
brand successfully.
Below is a step by step breakdown of the recruitment process.
HO
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INITIAL STAGESTAGE
1DETAIL STAGE
STAGE
2
site assessmentSTAGE
7inceptionSTAGE
8
INTERVIEW STAGESTAGE
3COMMITMENT STAGESTAGE
4
Psychometric assessmentSTAGE
5second interview ASSESSMENT
STAGE
6
• Obtain the application form
from Franchise Head Office
Tel: 010 202 3360 or
• Complete 1B and submit.
• 2A Complete full application form
and submit.
• A credit check is performed.
• Fillout questionaire.
• 2F A business plan guideline is sent
to you.
• Interview with Franchisor.
• Receive and Review Business
Plan submitted.
• Date of receipt for the balance of upfront
franchise fee.
• Signing of:
8A - The Franchise Agreement.
8B - Franchise Supply Agreement.
8C - Sign All Suppliers Application Form.
• Franchisor Site Evaluation.
• External Company Site Evaluation.
• 4A Sign commitment undertaking
document.
• Received draft agreements
137
Investment Information
• This store requires a retail location
between 500m2 - 700m2
.
• The type one store is best suited for larger areas.
• We guarantee that another Express store will not
be opened within an 8km radius.
• This store has a higher sta� requirement that
houses all operational sta�.
• 75% of the store is retail.
• This store requires a retail location between
200m2 - 400m2
.
• The Express mini store is best suited for smaller
areas such small towns.
• Priotity will be given to existing Express store
owners.
• This store has a minimum sta� requirement.
• 90% of store is retail.
LARGE STORE EXPRESS MINI STORE
The total investment varies and is to be con�rmed per area of application. The unencumbered cash
contribution required should be a minimum of 50% of the total cost. This will be negotiated with the
relevant �nancial institution at the applicable point in the Recruitment and Selection Program.
Note: All costs shown are indicative and subject to change and are exclusive of VAT.
Working capital will be required to carry the new business for at least 6 to 9 months. This will vary from
franchisee to franchisee and from business to business. We too will assist you in calculating the working
capital requirement for your business through the compilation of cash �ow projections etc.
Royalties are calculated on a monthly store turnover.
* Example: 2% of R1.2 million = R24 000.00
INV
ES
TM
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FOR
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R 0,00 - 500 000,00
R 500 000,00 - 1 000 000,00
R1 000 000,00 - 1 500 000,00
R1 500 000,00 and above
0 %
1 %
2 %
3 %
First year Second year onwards
3%Flat Rate
Royalty Fee Structure
Annexure 1E: The ACDC Express Prospectus 8
Upfront franchise fee R 150 000.00
Shop Set up R 1 175 000.00
Shop �tting (Counter ,co�ee unit ,tiles,security ) R 290 000.00
Shelving & Merchandising R 350 000.00
IT Infrastructure R 340 000.00
Signage R 70 000.00
Product Displays R 50 000.00
Training (2 Weeks accomodation, 5 sta�) R 25 000.00
Opening Event R 50 000.00
Delivery Vehicle
Peugeot Boxer R 390 000.00
TOTAL SET UP COSTS R 1 715 000.00
Stock R2 000 000.00
Working Capital/Overdraft R 600 000.00
TOTAL COST R 4 315000.00
INVESTMENT BREAKDOWN
Upfront franchise fee R 150 000.00
Shop Set up R 810 000.00
Shop �tting (Counter ,co�ee unit ,tiles,security ) R 200 000.00
Shelving & Merchandising R 200 000.00
IT Infrastructure R 260 000.00
Signage R 50 000.00
Product Displays R 30 000.00
Training (2 Weeks accomodation, 5 sta�) R 20 000.00
Opening Event R 50 000.00
Delivery Vehicle
Peugeot Boxer R 230 000.00
TOTAL SET UP COSTS R 119 0000.00
Stock R1 200 000.00
Working Capital/Overdraft R 400 000.00
TOTAL COST R2 790000.00
INVESTMENT BREAKDOWN
AV
AIL
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9
Welkom
Gauteng
Boksburg
Sandton
Soweto
Vereeniging
Limpopo Free StateKwa Zulu
Natal
New Castle
PortShepstone
Isipingo
Pinetown
Vryheid
Ladysmith
Fourways Messina
Lephalale
Modimolle/Bela-Bela
Tzaneen
Rosebank
Bloemfontein
Midrand
Silverton
Montana
Gezina
Pretoria West
Pretoria Central
1 1 12 2 2 2
Edanvale
Woodmead
ExistingStores Ballito Bellville
Bloem-fontein
CenturionDurbanCentral
Klerksdorp Lichtenburg Middelburg
Available Franchise Locations
Annexure 1E: The ACDC Express Prospectus 10
NorthernCape
EasternCape
Mpumalanga
Potchefstroom
Vryburg
Piet Retief
Hazeyview
UpingtonKathu
PortElizabeth
EastLondon
Umtata
Port Alfred
North WestWestern
Cape
Paarl
Tokai
Malmesbury
Worcester
Cape TownCity
Kimberly
Paarden Eiland
Montage Garden
1 1 1 12 2 2 2
Existing Stores
Express Mini Store
Large Store
Other Regions Out Of South Africa Available
Parklands
Stellenbosch
Hermanus
George
Knysna
Mosselbay
Middelburg NelspruitPietermar-
itzburgPolokwane
PretoriaEast
RichardsBay
Rustenburg SecundaSomerset
WestSteelpoort
StrijdomPark
StrubensValley
Distribution ReachD
IST
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UT
ION
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Target Market
PRIMARY
SECONDARY
End-Users
AUTOMOTIVE
PUBLIC SECTOR
ELECTRONICS
ENTERTAINMENT
ENGINEER
ARCHITECT / DESIGNER
HOSPITALITY
PETROCHEMICAL
MANUFACTURING
MEDICAL
MINING / MINERAL PROCESSING
IRRIGATION / PUMPS
CORPORATE / COMMERCIAL
AGRICULTURAL
RETAIL
Contractors
BUILDING / SHOPFITTER
ELECTRICAL
GENERAL
IRRIGATION / PUMPS
MINING / MINERAL PROCESSING
SERVICE
SIGN-WRITING
SECURITY CONTRACTOR
SOLAR CONTRACTOR
Resellers
Manufacturers
ELECTRICAL WHOLESALER
RETAIL
STOCKIST
ORIGINAL EQUIPMENT MANUFACTURER
PANEL BUILDER
HARDWARE
SPECIALIST
DISTRIBUTOR
11
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Our Marketing Efforts
The ACDC Express brand is backed by a dynamic and motivated marketing team that is committed to
creating awareness and excitement around each store, as well as maintaining a strong brand presence
within the market.
OUR MARKETING EFFORTS ARE EXECUTED ON TWO LEVELS:
NATIONAL AND LOCAL
National:
• Radio
• Exhibitions
• Social media
• Online marketing
• Quarterly and seasonal specials
Local:
• Community publications
• Street pole advertisements
• Sponsorships
• Charity drives
• Corporate gifts
• Launches
Annexure 1E: The ACDC Express Prospectus 12
Annexure 1E: The ACDC Express Prospectus 1313
Some Existing Advertising...E
XIS
TIN
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DV
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TIS
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PRINT ADVERTS
SPECIALS
Lighting
Wire & Accessories
Sockets & Switches
Security
Audio & Visual Alarms
Enclosures
Solar
Pumps & Levels
Electronics
Household Tools
Switch Gear Industrial
Automation Timers & Sensors
Specialists in:
Lighting
Wire & Accessories
Sockets & Switches
Security
Audio & Visual Alarms
Enclosures
Solar
Pumps & Levels
Electronics
Household Tools
Switch Gear Industrial
Automation Timers & Sensors
Specialists in:
www.acdcexpress.com
@A
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Everything Electrical for the Home, O�ce & FactoryEverything Electrical for the Home, O�ce & Factory
EXTRACTION
FANS
DOWNLIGHTSDECORATIVE
LIGHTING
Strijdom Park
Tel: 011 251 5600
Strubens Valley
Tel: 011 675 2137
Centurion
Tel: 012 003 2030Bloemfontein
Tel: 051 101 0206
Somerset West
Tel: 087 310 0120
Maputo
Tel: 00258 217 20636
Nelspruit
Tel: 013 752 3797
Polokwane
Tel: 015 297 6136
Rustenburg
Tel: 087 150 1354/5
Ballito
Tel: 032 946 2131
Stores Nationwide:
LED STRIP
LIGHTING
SOCKETS &
SWITCHES
Strubens Valley
Tel: 011 675 2137
Centurion
Tel: 012 003 2030
Bloemfontein
Tel: 051 101 0206
Somerset West
Tel: 087 310 0120
Nelspruit
Tel: 013 752 3797
Polokwane
Tel: 015 297 6136
Strijdom Park
Tel: 011 251 5600 www.acdcexpress.comMaputo
Tel: 00258 217 20636
@A
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xp
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Rustenburg
Tel: 087 150 1354/5
Ballito
Tel: 032 946 2131
Pool Lights
Flood Lights
Wall Lights
Downlights
Decorative Lights
Garden Lights
Everything Electrical for the Home, O�ce & Factory
Follow us on:Stores Nationwide
Solar
Pumps & Levels
Electronics
Household
Switch Gear
Automation
Lighting
Wire & Accessories
Sockets & Switches
Security
Audio & Visual Alarms
Enclosures Industrial
Timers & Sensors
Tools
Specialists in:
EX
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AD
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14
Some Existing Advertising...E
XIS
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DV
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TIS
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SOCIAL MEDIA MARKETING
EXHIBITIONS
STREET POLE ADVERTISING
FACEBOOK TWITTER
Annexure 1E: The ACDC Express Prospectus 15EX
IST
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AD
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GE
XIS
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TIS
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Some Existing Advertising...
BILLBOARDS
NEWSLETTER & PRODUCT ALERTS
Everything Electrical for the
PLUG TOP
Take advantage of this
ONCE OFF
SPECIAL SNP300-WH
SNP300-BK
SNP300-R
SNP300-CL
SNP300-BL
SNP300-OR
SNP300-Y
SNP300-BR
15A White Snapper Plug Top
15A Black Snapper Plug Top
15A Red Snapper Plug Top
15A Clear Snapper Plug Top
15A Blue Snapper Plug Top
15A Orange Snapper Plug Top
15A Yellow Snapper Plug Top
15A Brown Snapper Plug Top
R 6.83Only
Each
Valid from 1 June - 30 June 2013
NOW!www.acdcexpress.com
ACDC EXPRESSTel: 010 202 3360
www.acdcexpress.com
Everything Electrical for the Home O�ce and Factory
Q: WHAT SIZE OF THE STORE IS NEEDED?A: This will depend on the location of the site as we have specified areas that need large or small sites.
Q: CAN THE FRANCHISE SELL ANY BRANDS OTHER THAN THAT OF ACDC?A: No, ACDC Dynamics will be the primary supplier of the brands to be sold. Secondary suppliers will
need to be nominated by ACDC Franchise.
Q: WILL ACDC FRANCHISE FIND A LOCATION FOR ME TO LEASE?A: No, ACDC Franchise will provide you with a site selection guideline that will assist you in
finding the ideal location to open your store. Its suggested that at least three possible sites
are selected encase the first one does not qualify.
Q: WHAT IS ACDC FRANCHISE’S DISCOUNT STRUCTURE?A: As the recruitment process continues, this information will be made available to you. It must
be said that the discount structure is very attractive and favourable at this point in time.
Q: IF I REGISTER AS AN INTERESTED APPLICANT, AM I FINANCIALLY COMMITTED?A: The process of registering merely shows your interest in the possibility of becoming a future
franchisee. It needs to be highlighted that there is no financial commitment when registering.
We as the franchisor will walk with you in terms of providing the necessary guidance and advice.
Q: ONCE THE FRANCHISE AGREEMENT HAS BEEN SIGNED HOW LONG WILL IT TAKE
BEFORE I CAN OPEN MY STORE AND BEGIN TRADING?A: To open and begin trading can take up to three months. This is primarily because of the branding
requirements of the store, packing stock and any renovations the store may require.
Q: CAN I TAKE INITIATIVE AND MARKET MY STORE LOCALLY?A: Yes, you are encouraged to locate and take part in possible marketing opportunities in your local area.
All artwork will need to be designed and approved by head office to ensure brand integrity.
FR
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Frequently Asked Questions
Annexure 1E: The ACDC Express Prospectus 16
ACDC Express Initial Enquiry
Application Form (Page 1)E
NQ
UIR
Y F
OR
M
Name: Surname:
Contact No: Cell No:
Physical Address: Postal Address:
ID No: Email Address:
DO YOU OWN A BUSINESS?
Business Name:
Business Industry (Some Information):
or
ARE YOU CURRENTLY EMPLOYED?
Employer:
Position/ Occupation:
Years Employed:
Q&A
Q: Are you going to pursue this opportunity on a full time basis?
A:
Q: In which geographical area are you interested in pursuing this opportunity?
A:
Word of Mouth
Website
Publication
Other, please specify:
Annexure 1E: The ACDC Express Prospectus 17
ACDC Express Initial Enquiry
Application Form (Page 2)
Q: What do you know about ACDC Express?
A:
Q: Why are you interested in ACDC Franchise?
A:
A:
Q: Do you have any retail experience?
A:
Q: What business and/or sales skills do you have?
A:
Q: What unencumbered cash contribution do you have on hand to invest in ACDC Franchise?
A:
Q: What do you hope to achieve through owning this business?
A:
Q: Why are you interested in the retail industry?
A:
Q: Why are you interested in the electrical industry?
A:
Q: What are your interests and hobbies outside of the business arena?
A:
EN
QU
IRY
FO
RM
Annexure 1E: The ACDC Express Prospectus 18
ACDC EXPRESS STORE INFORMATION
www.acdcexpress.com
2 Nguni Drive, Longmeadow Estate West, Edenvale, Gauteng
Nikita HartmanTel: 010 202 3360, Email: nikitah@in�nitybrands.co.za
HEAD OFFICE
ACDC Building
Douglas Crowe Drive
Ballito, Kwazulu-Natal
Tel: 032 946 2131
Tel: 087 150 1584
BALLITO
1-11 Hornby Street
Oranjesig, Bloemfontein,
Free State
Tel: 051 101 0206
BLOEMFONTEIN
Shop 1
Cnr Kerk & Bantjies street,
Lichtenburg
Tel: 018 632 2027
LICHTENBURG
Crossing Centre
Cnr of Madiba Drive & N4
Nelspruit, Mpumalanga
Tel: 013 752 3797
NELSPRUIT
Shop No. 6
Hyundai Park, Howick Avenue
Waterfall Mall, Rustenburg
North West
Tel: 087 150 1354/5
RUSTENBURG
Unit E1 Strijdom
Commercial Park, Tungsten Road
Strijdom Park, Randburg
Gauteng
Tel: 011 251 5600
STRIJDOM PARK
Cnr of Strand & Ford Street
Loumar, Bellville
Tel: 021 946 1390
BELLVILLE
Cnr of N2 & Gerber Blvd
Strand, Cape Town
Western Cape
Tel: 087 310 0120
SOMERSET WEST
CENTURIONShop No. 10 Lenchen Centre
9 Jakaranda Street
Hennopspark EXT 7
Centurion ,Gauteng
Tel: 012 003 2030
POLOKWANEShop No. 8
Polokwane Lifestyle Centre
Cnr of Market & Landros
Mare Streets
Polokwane, Limpopo
Tel: 015 297 6136
STRUBENS VALLEYLifestyle Corner West
Rand Cnr of Nic Diederichs
Blvd & Florin Road
Wilgeheuwel EXT 30
Strubens Valley, Gauteng
Tel: 011 675 2137
STEELPOORT179 Bergsering EXT 3
Steelpoort
Tel: 013 230 9535
SECUNDARICHARDS BAY MIDDELBURGPIETERMARITZBURGShop 4 & 5, The Square
4 Chatterton road
Pietermaritzburg
Tel: 087 405 0664
2B Rivier Street
Middelburg
Mpumalanga
Tel: 087 405 0675
159 Dollar drive
Richards Bay
Tel: 087 405 0640
Cnr Blouberg & Drakensberg
Shop D4
Tel: 017 631 3531
DURBAN CENTRALKLERKSDORP PRETORIA EAST
Shop 81 & 85, Flamwood Walk
Shopping centre
1 Brother Patrick lane
Klerksdorp
Tel: 087 405 0610
Shop 34A, Menlyn Retail Park
Cnr Lois Avn. & Garsfontein Rd.
Newlands, Pretoria
Tel: 087 405 0620
72 Florance Nzama Street
Umhlanga Rocks
Durban
Tel: 087 405 0630
