SpazaHub — Exit Strategy
Option 1: Franchise / Licence Model (Preferred, Year 3–5)
Section 15 · Business Plan
Exit Strategy
Option 1: Franchise / Licence Model (Preferred, Year 3–5)
Over a five-year horizon on a 2.6-year payback, with exit options including a franchise programme, trade sale and strategic acquisition.
Option 1: Franchise / Licence Model (Preferred, Year 3–5)
Transition to a franchisor model, retaining flagship stores while licensing the SpazaHub brand, supply chain, and technology platform to independent operators. Franchise fees of ZAR 80,000–120,000 plus 5% monthly royalties create recurring revenue. Target: 100+ franchise stores within 7 years, generating ZAR 8–12 million in annual royalty income. The spaza format’s low CapEx requirement (ZAR 400–600K per franchise unit) makes it accessible to a broad pool of aspirant entrepreneurs.
Option 2: Trade Sale (Year 5–7)
Sale to a strategic acquirer: formal retail group (Shoprite, Pick n Pay), FMCG distributor, fintech company, or private equity fund focused on last-mile retail. Valuation of 5–7x trailing EBITDA implies enterprise value of ZAR 16–22 million at Year 5.
Option 3: Management Buyout
Structured MBO enabling the founding team to acquire full ownership through retained earnings and mezzanine financing.
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