There are three franchise divisions within the Golden Homes organisation and any Franchisee wishing to operate any division must enter into a separate agreement for each, as they differ in fees and management processes.
1. Residential Franchise Agreement
- This agreement covers all residential property sales including plots and farms within the allocated franchise zone.
- The average franchise zone is +/- 40 000 units.
- A 0.22% plus VAT franchise fee is payable on the purchase price of a property.
- This fee is payable by the transferring attorney upon registration of the transfer.
- There are no fees payable for any letting procurement or letting management.
- A monthly service and administration fees are payable.
A Masterfile information form and FICA documents are required for all Franchise owners, partners, members, directors, and/or managers.
Annexure 5 – Residential Franchise Agreement
2. Commercial and Industrial Franchise Agreement
- This agreement covers all commercial and industrial property, as well as agricultural land over R5 000 000 (five million rand), within the franchise zone.
- A franchise zone generally includes the entire municipal district in which the franchise is situated.
- A 4% plus VAT franchise fee is payable on the commission earned.
- The same fee is applicable and payable for all letting procurement and management.
- The fees are payable by the attorneys upon registration of the transfer upon the conclusion of the lease agreement.
- A monthly service and administration fees are payable.
A Masterfile information form and FICA documents are required for all Franchisee owners, partners, members, directors, and /or managers.
This section is under discussion and will be updated once it has been finalised.
Any commercial and industrial sales done by the franchisee are subject to the commission terms and conditions as follows:
The Franchisee will be obliged to pay to the Franchisor a royalty fee on all registered sales, including letting and building management, a fee calculated at 4% (four percent) excluding Vat of the Gross Commission as stipulated in the offer to purchase or lease agreement. Such amount shall be paid by the Conveyancer to the Franchisor against registration of transfer, and the Franchisee will instruct the Transferring Attorney accordingly. All lease and management commission shall be payable by the Franchisee upon conclusion of the lease or annual management fee collected.
Annexure 6 – Commercial and Industrial Franchise Agreement
3. Auctions
This section is still under discussion and will be updated once it has been finalised.
