- Average set-up cost – R 300 000
- Initial franchise fee – R 150 000
- Minimum owners’ contribution – 100%
- Management services fee – 15%
- Initial agreement term – 5 Years
- Renewal term – 5 Years
| Franchise | Set-up cost | Franchise fee |
|---|---|---|
| Steers | R1 200 000 | R130 000 |
| Subway | R1 100 000 | |
| Cinnabon | R1 000 000 | |
| Burger Perfect | R 970 750 | R 65 000 |
How much does it cost to open up a franchise in South Africa?
Breakdown of average Total InvestmentDescriptionDrive-ThruInlineFixtures and fittingsR1 894 000R1 355 800Average Investment (Excluding VAT)R6 800 000R5 000 000Franchise FeeR 250 000R 250 000Total Average Establishment Costs (Excluding VAT)R7 050 000R5 250 0004 more rows
Which franchise is most profitable in South Africa?
These are the start-up costs for opening some of the biggest franchises in the country: KFC – from R6 million. Nando's – from R7 million. Debonairs – from R2 million....Top 20 fast food franchises that make the most money in South Africa.BrandSteersRevenue (2017)R1.35 billionGrowth (from 2016)8.9%Franchises (2017)561Revenue per outletR2.4 million19 more columns•Aug 2, 2018
What is the cheapest most profitable franchise in South Africa?
Which is the Cheapest Franchise to Buy in South Africa?Fish & Chip Co.: Roughly R645 000 starting cost plus R4400 monthly payment.King Pie: Approximately R600 000 starting cost.Zebro's Chicken: Roughly R831 000 plus 4% of monthly turnover.
Which franchise is cheapest to own?
12 best low-cost franchises for aspiring business ownersCruise Planners. Franchise fee: $10,995. ... Fit4Mom. Franchise fee: $5,495 to $10,495. ... Chem-Dry. Franchise fee: $23,500. ... Jazzercise. Franchise fee: $1,250. ... Stratus Building Solutions. ... SuperGlass Windshield Repair. ... Mosquito Squad. ... Pillar to Post Home Inspectors.More items...•
How much does a KFC owner make in South Africa?
What is the annual revenue of a KFC franchise in South Africa? KFC generates roughly R942,000 R1,000,000 year as a single unit. Yum! Brands doesn't publicly disclose the incomes of its franchise owners, but based on national averages for food franchise owners, it can be assumed that owners earn about R120,000 annually.
Is franchising a good investment in South Africa?
Despite the current tough economic climate in South Africa, buying into a local franchise still presents a lower risk of failure or loss of investment than starting your own business from scratch.
How much is KFC franchise in South Africa?
It is hard to determine exactly how much KFC charges to open a new franchise; however, the number has been rumoured to be anywhere between five and six million.
How much is a Mcdonald's franchise in South Africa?
between R4 million and R6 millionIf you fit the requirements to be a new franchisee, you'll need to pay between R4 million and R6 million for the privilege. Franchisees must have 35% of this in unencumbered, non-borrowed cash.
How do franchises work in South Africa?
A franchise is an agreement or license entered into by two parties, namely the franchisor and the franchisee. Franchising in South Africa is well developed with over 550 franchised brands and close to 30,000 franchised outlets. Read why franchising is an attractive career change option in today's climate.
Do franchise owners get rich?
According to a survey done by Franchise Business Review*, the average pre-tax annual income of franchise owners in the U.S. is about $80,000. However, only 7% of franchise owners earn over $250,000 per year with 51% earning less than $50,000.
Can I buy a franchise with 100K?
Though some franchises might be out of your current budget, there are many great options that you can get up and running for under 100k. There are many types of franchises to choose from, and depending on your skills and interests, there is likely a franchise that will fit you best.
What can you franchise under 100K?
Ease into entrepreneurship with these affordable franchises....Here are a couple of easy-on-the-wallet franchises that you can look into with packages that are below 100K:Kettle Korn: P15,000. ... Pinoy Pao: P26,888. ... Sisig Stop: P42,888. ... Happy~Haus Donuts: P50,000. ... ML Express: P99,000.
What franchise generates the most money?
What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.
What is the most profitable franchise to get into?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
What is the most profitable franchise ever?
The 25 Highest-Grossing Media Franchises of All TimePokémon – $92.121 billion.Hello Kitty – $80.026 billion.Winnie the Pooh – $75.034 billion.Mickey Mouse & Friends – $70.587 billion.Star Wars – $65.631 billion.Anpanman – $60.285 billion.Disney Princess – $45.187 billion.Mario – $36.143 billion.More items...
What franchise has the highest revenue?
Key Takeaways. The highest-grossing movie franchise of all time is the Marvel Cinematic Universe. The top two highest-grossing franchises, the Marvel Cinematic Universe and Star Wars, are both owned by Disney. Four of the five highest-grossing franchises are based on either a series of comic books or a series of novels ...
How long is a franchise agreement?
The duration of the franchise agreement is 10 years or as per shopping centre lease duration
Is KFC offering franchise opportunities?
KFC. R5 500 000 – KFC is not offering any franchise opportunities any more. ( From time to time, existing KFC franchisees may elect to sell their businesses, and it is therefore possible to become a new KFC franchisee by purchasing an existing KFC business.
Does Chicken Licken provide finance?
Chicken Licken ® does not provide finance, though financial organisations normally require that the applicant provide approximately 50% of the loan.
When was Africa Skills Village founded?
Africa Skills Village has been changing people’s lives since it was founded in 2007. Their management, staff, franchisees, students, host employers and other stakeholders are part of the Proudly Africa Skills family and encourage creativity and innovation. Achievements from both staff and students are recognized and rewarded.
How long has FICS been around?
FICS originated over a 25 years period when specialist services were performed for the Road Accident Find (RAF), attorneys and Auditors were integrated into the FICS Franchise model. FICS utilized this accumulated expertise, best practices, templates, electronic and IT systems and developed a business model.
How many stores does Miniso have?
Miniso has over 3 500 stores worldwide, and operates in over 70 countries globally. The Miniso franchise model has several unique differentiators compared to most retail franchises in South Africa, with the franchisor playing a significant hands-on management approach on behalf of the franchisee.
Motolek
Motolek, owned by the Midas brand, is a chain of roughly 60 auto electrical workshop franchises that operate throughout the country. Motolek franchises offer a range of electrical services for passenger vehicles, trucks, boats, and earth moving equipment.
Business Doctors
Business Doctors is a small business owner coaching franchise. They help coach small businesses to develop strategic plans, achieve organisational efficiency, and improve supply chain management, among others.
Abacus Maths
Abacus Maths, which uses a Japanese abacus to teach young children the basics of maths, is one of the cheaper franchises available in South Africa. The company is looking for franchisees who are passionate about education and patient with children.
MiniChess
MiniChess is a business that teaches chess to children between the ages of five and nine. The company provides structured lessons with detailed plans and project books, and they're looking for franchisees to run branches.
Battery Centre
Battery Centre is a business started in South Africa in 1969 that sells and fits car vehicle batteries. It now has an extensive national footprint of 120 branches driven by franchisees. It's also a franchise that has a relatively low total investment amount for a physical store.
Tutor Doctor
Tutor Doctor is an in-person and online tutoring franchise with an international footprint. The business started offering franchises in South Africa in 2017 and currently has seven local franchisees on board. They give new franchisees 80 hours of online training and seven days in a home office before opening the business.
Dream Nails
Dream Nails has been around for more than 35 years, and the full-service nail and beauty salon is still looking for new franchisees to join its network. They are primarily looking for people passionate about nails, wellness, and beauty to join their team - and they offer one of the cheaper beauty franchises currently on the local market.
Who is the chairman of the Franchising Association of South Africa?
This is according to Tony Da Fonseca, chairman of the Franchising Association of South Africa (FASA), who is confident that franchising business format will continue to outperform the overall economy.
What is franchising in marketing?
The franchisor engages in a variety of marketing activities, including digital marketing, national promotions and individual store campaigns.
What is the role of franchisor planning?
The franchisor’s operational planning department assists franchisees by researching new store locations, designing the store formats and preparing budget and financial projections for each site.
How much of Sorbet should be available in cash?
Sorbet says that the exact amount of your investment will depend entirely on the size and condition of your selected store and varies from site to site. 50% of this amount should be available in unencumbered cash as a deposit (funding can be obtained for the balance).
What is H2O International SA?
H2O International SA has over 20 years experience in providing South Africans with water and air purification systems.
What is a 3@1 franchise?
The 3@1 Business Services franchise concept offers a retail opportunity in the business services and communications industry.
Is franchising growing in South Africa?
Franchising is likely to see continued growth in 2018, as the sector remains a core part of the country’s business sector, which is likely to be boosted by the appointment of Cyril Ramaphosa as president of the nation. This is according to Tony Da Fonseca, chairman of the Franchising Association of South Africa (FASA), ...
What do franchisees need to purchase?
Franchisees must also purchase a comprehensive operation manual that details all aspects of running the business.
What is the cheapest franchise in Spar?
The cheapest franchise option in the SPAR stable is their TOPS liquor store. These cost approximately R1 million to establish, but aren’t awarded as a separate entity, however. According to franchise documents, they’re only granted once one of the above supermarket applications is approved.
What are the big five supermarkets in South Africa?
Taking on the country’s big five supermarkets as an independent retailer would be a brave decision - Woolworths, Pick n Pay, Spar, Checkers and Shoprite hold the lion’s share of the market in South Africa.
How many Pick and Pay stores are there?
Of the 552 supermarkets under the Pick n Pay umbrella, 304 are franchises. The floor space of these stores is large - they are, on average, 3000 square metres in size. This increases the complexity of running the business, and pushes up the initial purchase price.
How much does a retailer pay for guild fees?
On top of the above, retailers pay a guild fee of 1% of average monthly turnover. The holding company uses this for advertising such as leaflets, press, and television commercials.
When did Woolworths stop franchising?
Although Woolworths stopped franchising its stores in 2010, it’s still possible to purchase and run your own Spar or Pick n Pay.
How many stores does Pick n Pay have?
Pick n Pay started as a family-run business, but has since grown to include 1,795 stores, of which 719 are franchises covering their supermarkets, express, clothing and liquor stores. After a couple of lean years, things are also looking up at Pick n Pay.
