How to Buy a Franchise in South Africa
- 1. Approach the franchisor The first step is to approach the franchisor to express your interest and see whether you can take the discussions to the next level. ...
- 2. Complete the application process ...
- 3. Find out more ...
- 4. Find the right location ...
- 5. Secure the finance ...
- 6. Sign on the dotted line (but read the small print first) ...
- 7. Preparing for launch ...
Full Answer
How much does it cost to open a franchise in South Africa?
Initial franchise fee – R 95 000 Initial Working Capital – R 70 000 Opening Stock + 3 to 6 months wages & rental Minimum owners’ contribution – 50% of Outlets – 27
What are the costs of buying a franchise?
When you purchase a franchise, there are various costs involved. These generally include the franchise fee and application fee, the establishment costs, and applicants need sufficient working capital. On top of this, many franchises require monthly royalty payments, advertising costs, or a percentage of monthly profits.
How many Chem Dry franchisees are there in South Africa?
They have a network of 60 well trained Franchisees with an outstanding reputation in South Africa, Namibia, Botswana and Zimbabwe. Chem-Dry SA was named Chem-Dry’s Master Franchisee of 2013 at the Devere International Convention held in Nashville, Tennessee, in October 2013. Available Opportunities – 16 (Please contact Chem-Dry SA directly.)
What do franchisors want to know about your business?
How long does a franchisee have to sign a franchise agreement?
What is the most common form of funding for a franchisor?
How long before you sign a franchise agreement do you have to disclose information?
Why is it important to find the right franchise location?
Can a franchisor talk to a franchisee?
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How much does it cost to buy a franchise in South Africa?
How much it costs to buy a franchise in South AfricaFranchiseSet-up costFranchise feeKauaiR1 300 000R110 000SteersR1 200 000R130 000SubwayR1 100 000CinnabonR1 000 00022 more rows
What is the most profitable franchise to own 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
Which is the cheapest 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.
Can I get funding for a franchise in South Africa?
NEF funding of franchises is through a loan instrument with the term matching the duration of the franchise license, however, up to a maximum term of 7 years. BEE party must have been pre-approved by the franchisor before approaching NEF. NEF funding generally limited to R10 million. NEF will fund SME; using mainly ...
Can franchising make you rich?
The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.
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 MTN franchise?
"It basically costs next to nothing" to become a franchisee, if an entrepreneur is to exclusively provide MTN`s services. However, an amount of R90 000 would be payable over three years should a franchisee decide to terminate the three-year franchising contract.
How much is a Dischem franchise?
As a Dis-Chem franchise requires an investment of about R15 million, Dis-Chem offers suitable prospects access through a joint venture (JV). Under this scenario, the JV will be the franchisee and the incoming JV partner will be offered up to 49% of the equity.
How much does Pick n Pay franchise cost?
Opening a Pick n Pay store costs in the region of R10 million, and a KwikSpar Spar between R6 million and R7 million. Buying an existing store is cheaper – but still costs several million. For more, go to Business Insider SA.
Do banks give loans for franchise?
Credit unions and commercial banks too offer franchise business financing. However, the process of documentation may test your patience. Your choice institution will study both your personal and business credit scores.
How much is Sasol franchise?
The franchise fee is R2. 5M. Working Capital is R1. 5M Fuel Guarantee is R 850 000.00 ( Garage Sure or Refine – subscription ) Total Amount Required – R4M.
Who qualifies for Seda?
Employees must be 70% South Africans, and in the case of non-South African employees they must hold valid work permits as determined by the Department of Home Affairs. Must be operating in a township or village. Must be registered or must apply for registration with SARS and UIF.
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...•
Is a franchise a good investment in South Africa?
SA's economic growth must come from private enterprise and the SME sector and franchising is the ideal vehicle to grow the small business sector. The biggest benefit of becoming a South African franchisee is that securing finance for a franchise business opportunity is easier than financing an independent business.
What is the richest company in South Africa?
Largest companiesNameRevenue (2018)1Anglo American$27.6 billion2Sasol$14.8 billion3Shoprite Holdings$11 billion4MTN Group$10 billion14 more rows
How much is a wimpy franchise in South Africa?
For a brand new Wimpy Franchise, franchisees can expect to pay between R1. 9 million – R2. 5 million and an initial franchisee fee of R114,300. Franchisees are also expected to pay 7% of their turnover in management fees and 5% of their turnover in royalties.
How long do you have to look at a franchisor contract?
This is another document provided to you that is essentially the contract between you and the franchisor. You will have 14 days to look through it thoroughly. It includes things like expected costs, cash flow projections, and more.
Does franchising help with training?
The franchisor will help a lot in the training part, but the hiring will be mostly up to you. Choose people who are passionate and can help you grow your business.
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 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.
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 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.
How much does a franchise cost in South Africa?
McDonald’s South Africa estimates the cost of a franchise to be anywhere between R4 million – R6 million, depending on the type of restaurant and other factors. Applicants are are also expected to have a minimum of 35% of the purchase price of a restaurant in unencumbered, non-borrowed cash.
What is McDonald’s franchise fee?
How much is a McDonald’s Franchise? The total investment necessary to begin operation of a traditional McDonald’s franchise ranges from $1,008,000 to $2,214,080. This includes an initial franchise fee of $45,000.00 that must be paid to the franchisor.
What do franchisors want to know about your business?
The franchisor will want to know about your personal assets (and liabilities) to make sure you have enough resources to operate the business in case it runs into unforeseen financial difficulty.
How long does a franchisee have to sign a franchise agreement?
Franchise agreements are subject to the Consumer Protection Act (CPA). The CPA states that a franchisee should have at least 14 days to consider both the franchise agreement and disclosure document and that a franchisee may cancel a franchise agreement within 10 days of signing it without penalty.
What is the most common form of funding for a franchisor?
There are many forms of funding , but the most common form is a loan from a bank. The franchisor will often assist you with your application, suggesting a preferred bank and providing templates for you to complete your business plan.
How long before you sign a franchise agreement do you have to disclose information?
At least two weeks before you sign a franchise agreement, you’ll receive a franchise disclosure document from the franchisor. This document will give you the full details of the business including any possible areas of concern such as impending litigation as well as in-depth information about the businesses prospects. Read this document carefully and have the documents reviewed by a lawyer familiar with franchise agreements to explain it to you. You may also be required to sign a non-disclosure agreement to deter you from passing on highly confidential information.
Why is it important to find the right franchise location?
For most franchises the right location is critical to the businesses success. The challenge is that good sites are in high demand and it may take some time to find the right one. Your franchisor will typically assist you with finding the right site often guided by geographic market research.
Can a franchisor talk to a franchisee?
It is often difficult to separate the franchisor’s enthusiasm from the daily realities of running the business. At this stage most franchisors will allow you free access to talk to any franchisees in their network. Use this opportunity to ask questions about sales trends and the support received from the franchisor.