KotaVille — Exit Strategy
Option 1: Franchise Licensing Model (Preferred, Year 3–5)
Section 15 · Business Plan
Exit Strategy
Option 1: Franchise Licensing Model (Preferred, Year 3–5)
Over a five-year horizon on a 2.4-year payback, with exit options including a franchise programme, trade sale and strategic acquisition.
Option 1: Franchise Licensing Model (Preferred, Year 3–5)
Transition to a franchisor model, retaining company-owned flagship units while licensing the KotaVille brand, recipes, and systems to franchisees. Franchise fees of ZAR 150,000–250,000 plus 6% monthly royalties create a high-margin, asset-light revenue stream. Target: 50+ franchise units within 10 years, generating ZAR 15–20 million in annual royalty income.
Option 2: Trade Sale (Year 5–7)
Sale to a strategic acquirer such as a major QSR group (Spur Corporation, Famous Brands), private equity firm, or international food company. Based on 5–7x trailing EBITDA, the implied enterprise value ranges from ZAR 24.6–34.4 million at Year 5 levels.
Option 3: Management Buyout (Year 5+)
Structured buyout enabling the founding team to acquire full ownership, funded through retained earnings and mezzanine financing. This option ensures brand continuity and provides investors a clean exit at negotiated valuation.
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