The

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nity Annexure 1E:

The ACDC Express ProspectusAnnexure 1E:

The ACDC Express Prospectus

THE

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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 manu-facturer, 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,

versatile shopping experience, allowing customers to browse at leisure in an electrical ‘supermarket’. Our

customers. Their knowledge extends but is not limited to instrumentation, home and business automation, sustainable energy solutions, agricultural tools and lighting.

The ACDC Express Prospectus

About the ACDC Express Franchise

Organisation Mission StatementACDC Express endeavours to provide a complete range of electrical solutions, in the most convenient way

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.

Vision

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.”

them with superior product knowledge and unrivalled customer service etiquette. The brand managers

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.

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

up-to-date in terms of IT trends and advise you on ideal stockholding.

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The Ideal Franchisee

JOB DESCRIPTION OF A FRANCHISEE

• 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)

• 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

are looking forward to grow our franchise network along with us:

SKILLS• Financially savvy

• Communication, relationship, interpersonal and leadership skills• Systems oriented • Organised• Computer literate• Multi-tasking – operations and administration• Sales abilities• Management skills

OTHER POINTS

• 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)

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with ACDC Franchising

WHAT KIND OF SUPPORT WILL I RECEIVE?In t erms o f the franchise n etwork and t he F ranchisor’s ongoing c ommitment to i ts n etwork o f 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.

• 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;

computer hardware and software. The costs thereof is to be funded by the franchisee;

Should certain parties not m eet t he required competency l evels of ACDC Express i t shall inform t he 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.

• Systems development.• Approval of local marketing initiatives.

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Our Existing FranchisesEX

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ACDC EXPRESS BALLITO ACDC EXPRESS BLOEMFONTEINACDC EXPRESS BELLVILLE

ACDC EXPRESS POLOKWANE ACDC EXPRESS RUSTENBURG

ACDC EXPRESS MAPUTO

ACDC EXPRESS SOMERSET WEST ACDC EXPRESS STEELPOORT

ACDC EXPRESS CENTURION

ACDC EXPRESS NELSPRUIT

ACDC EXPRESS STRIJDOM PARK ACDC EXPRESS STRUBENS VALLEY

ACDC EXPRESS LICHTENBURG

How Do I Become A Franchisee?

The Recruitment & Selection Process of an ACDC Franchisee

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.

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INITIAL STAGESTAGE

1 DETAIL STAGESTAGE

2

site assessmentSTAGE

7inceptionSTAGE

8

INTERVIEW STAGESTAGE

3COMMITMENT STAGESTAGE

4

FRANCHISOR SITE EVALUATIONSTAGE

5 PSYCHOMETRIC ASSESSMENTSTAGE

6

• Obtain the application form from

Tel: 010 202 3360 or www.nicole@acdc.co.za• 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.• 3A First assesment interview.• 3B Express presentation • 3C disclosure documents.

• Franchisor evaluates site.• Sign and submit 5A Franchisor site evaluation and selection.

• Signing of the • 8A Franchise Agreement.• 8B Franchise Supply Agreement.• 8C Suppliers Application Form• Pay balance of franchise fee upfront.

• Undergo psychometric assessment.• Business plan review.

• External site evaluation by Franchisor.

• 4A Sign commitment undertaking document. • 4B Draft franchise agreement.• 4C Draft supply agreement.• 4D Disclosure document.• 4E Franchise site evaluation.• Invitation to psychometric test

Investment Information

• This store requires a retail location between 500m - 700m .• The type one store is best suited for larger areas.• We guarantee that another Express store will not be opened within an 8km radius.•

• 75% of the store is retail.

• This store requires a retail location between 200m - 300m .• The Express mini store is best suited for smaller areas such small towns.• Priotity will be given to existing Express store owners.•• 90% of store is retail.

LARGE STORE EXPRESS MINI STORE

Upfront Franchise Fee:Shop Set-up:

TOTAL SETUP COSTS R 1 400 000, 00

TOTAL COST R 4 000 000, 00

Delivery VehiclePeugeot Boxer

StockWorking Capital / Overdraft

R 2 000 000, 00R 600 000, 00

Shop Fittings (Cleaning, Painting, Tiles, Security)

Shelving & MerchandisingIT InfrastructureSignageProduct DisplaysTraining Opening Event

R 160 000, 00R 270 000, 00R 340 000, 00R 70 000, 00R 50 000, 00R 25 000, 00R 35 000, 00

R 100 000, 00

R 350 000, 00

R 950 000, 00

INVESTMENT BREAKDOWNUpfront Franchise Fee:Shop Set-up:

TOTAL SETUP COSTS R 900 000, 00

TOTAL COST R 2 500 000, 00

Delivery VehiclePeugeot Partner

StockWorking Capital / Overdraft

R 1 200 000, 00R 400 000, 00

Shop Fittings (Cleaning, Painting, Tiles, Security)

Shelving & MerchandisingIT InfrastructureSignageProduct DisplaysTraining Opening Event

R 90 000, 00R 165 000, 00R 260 000, 00R 50 000, 00R 30 000, 00R 20 000, 00R 35 000, 00

R 150 000,00

R 650 000, 00

INVESTMENT BREAKDOWN

required should be a minimum of 50%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

Royalties are calculated on a monthly store turnover.

* Example: 2% of R1.2 million = R24 000.00

INV

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R 0,00 - 500 000,00R 500 000,00 - 1 000 000,00 R1 000 000,00 - 1 500 000,00R1 500 000,00 and above

0 %1 %2 %3 %

First year Second year onwards

3%Flat Rate

Royalty Fee Structure

R 100 000, 00

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Available Franchise Locations

ExistingStores Ballito Bellville Bloemfontein Centurion Lichtenburg Polokwane Nelspruit Rustenburg Steelpoort Strijdom

ParkStrubens

Valley Somerset

West

Franchises in South Africa

InternationalStores

Maputo

Botshabelo

Bethlehem / Harrismith

Gauteng

Oakdene

Boksburg

Sandton

Soweto

Vereeniging

Welkom

Limpopo NorthernCape

EasternCapeMpumalangaFree State Kwa Zulu

Natal

New Castle

Richards Bay

Pietermaritzburg

PortShepstone

Isipingo

Pinetown

Durban Central

Vryheid

Ladysmith

Klerksdorp

Potchefstroom

Vryburg

Bunalahleni

Ermelo

Piet Retief

Lydenburg

Hazeyview

Barberton

Middelburg

UpingtonKathu

PortElizabeth

EastLondon

Mthatha

Port Alfred

North West

Fourways

Edenvale

Messina

Tephalale

Modimolle/Bela-Bela

Tzaneen

Rosebank

Stellenbosch

Vredenburg

WesternCape

George

Paarl

Tokai

Malmesbury

Worcester

Cape TownCity

Midrand

Silverton

Montana

Faerie Glen

Pretoria West

Pretoria Central

Paarden Eiland

Montage Garden

1 1 1 1 1 1 12 2 2 2 2 2 2

Parklands

Hermanus

2

Existing Stores

Express Mini Store

Large Store(Store size: 500-700m )

Other Regions Out Of South Africa Available

(Store size: 200-300m )

Distribution ReachD

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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

Resellers

Manufacturers

ELECTRICAL WHOLESALER

RETAIL

STOCKIST

ORIGINAL EQUIPMENT MANUFACTURER

PANEL BUILDER

HARDWARE

SPECIALIST

DISTRIBUTOR

OU

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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.

National:• Print

• Radio• Exhibitions• Social media• Online marketing• Quarterly and seasonal specials

Local:• Community publications• Street pole advertisements• Sponsorships• Charity drives• Corporate gifts• Launches

Some Existing AdvertisingEX

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AD

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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

EXTRACTIONFANS

DOWNLIGHTSDECORATIVELIGHTING

Strijdom ParkTel: 011 251 5600

Strubens ValleyTel: 011 675 2137

CenturionTel: 012 003 2030

BloemfonteinTel: 051 101 0206

Somerset WestTel: 087 310 0120

MaputoTel: 00258 217 20636

NelspruitTel: 013 752 3797

PolokwaneTel: 015 297 6136

RustenburgTel: 087 150 1354/5

BallitoTel: 032 946 2131

Stores Nationwide:

LED STRIP LIGHTING

SOCKETS &SWITCHES

Strubens ValleyTel: 011 675 2137

CenturionTel: 012 003 2030

BloemfonteinTel: 051 101 0206

Somerset WestTel: 087 310 0120

NelspruitTel: 013 752 3797

PolokwaneTel: 015 297 6136

Strijdom ParkTel: 011 251 5600 www.acdcexpress.com

MaputoTel: 00258 217 20636

@A

CDC

Expr

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RustenburgTel: 087 150 1354/5

BallitoTel: 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 GearAutomation

Lighting

Wire & Accessories

Sockets & Switches

Security

Audio & Visual Alarms

Enclosures IndustrialTimers & Sensors

Tools

Specialists in:

Earthworks, Half Page, June 2013

EXIS

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Some Existing AdvertisingEX

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AD

VER

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SOCIAL MEDIA MARKETING

EXHIBITIONS

STREET POLE ADVERTISING

FACEBOOK TWITTER

Some Existing AdvertisingEX

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AD

VER

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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

Q: What size of the store is needed?A: This will depend on the location of the site as we have speci�ed 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 �nd a location for me to lease?A: No, ACDC Franchise will provide you with a site selection guideline that will assist you in �nding the ideal location to open your store. Its suggested that at least three possible sites are selected encase the �rst 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 �nancially 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 �nancial 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 o�ce to ensure brand integrity.

FREQ

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Frequently Asked Questions

16

ACDC Express Initial Enquiry Application Form (Page 1)

ENQ

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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):

orAre you currently employed?Employer:Position/ Occupation:Years Employed:

Q&AQ: 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, if other, please specify:

Annexure 1E: The ACDC Express Prospectus 13

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:

ENQ

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Annexure 1E: The ACDC Express Prospectus 14

ACDC EXPRESS STORE INFORMATION

www.acdcexpress.com

26 Nguni Drive, Longmeadow Estate West, Edenvale, Gauteng

Ricardo Maio-(Franchise Manager)Tel: 010 202 3360, Email: ricky@acdc.co.za

HEAD OFFICE

ACDC Building Douglas Crowe DriveBallito, Kwazulu-Natal

Tel: 032 946 2131Tel: 087 150 1584

BALLITO1-11 Hornby Street

Oranjesig, Bloemfontein, Free State

Tel: 051 101 0206

BLOEMFONTEIN

Shop 1 Cnr Kerk & Bantjies street,

LichtenburgTel: 018 632 2027

LICHTENBURGCrossing Centre

Cnr of Madiba Drive & N4Nelspruit, Mpumalanga

Tel: 013 752 3797

NELSPRUITShop No. 6

Hyundai Park, Howick AvenueWaterfall Mall, Rustenburg

North WestTel: 087 150 1354/5

RUSTENBURG

Unit E1 StrijdomCommercial Park, Tungsten Road

Strijdom Park, RandburgGauteng

Tel: 011 251 5600

STRIJDOM PARK

Cnr of Strand & Ford StreetLoumar, BellvilleTel: 021 946 1390

BELLVILLE

Cnr of N2 & Gerber BlvdStrand, Cape Town

Western CapeTel: 087 310 0120

SOMERSET WEST

Av. Uniao AfricanaNo. 759 Loja 1 MatolaMaputo, Mozambique

Tel: 00258 217 20636

MAPUTO

CENTURIONShop No. 10 Lenchen Centre

9 Jakaranda StreetHennopspark EXT 7Centurion ,Gauteng

Tel: 012 003 2030

POLOKWANEShop No. 8

Polokwane Lifestyle CentreCnr of Market & Landros

Mare StreetsPolokwane, Limpopo

Tel: 015 297 6136

STRUBENS VALLEYLifestyle Corner West

Rand Cnr of Nic DiederichsBlvd & Florin Road

Wilgeheuwel EXT 30Strubens Valley, Gauteng

Tel: 011 675 2137

STEELPOORT179 Bergsering EXT 3

SteelpoortTel: 013 230 9535