how to buy into a franchise in south africa

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 long do you have to look at a franchisor contract?

Does franchising help with training?

About this website

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

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

How do I become a franchise owner in South Africa?

Below are some guidelines on how to follow each of these steps in opening your own franchise.Online Self-Test. ... Set your budget. ... Choose a franchise industry. ... Choose a franchise. ... Apply to find out more information from the franchisor. ... Sign the franchise agreement. ... Sign lease agreement and pay rental deposit.

Is a franchise a good investment in South Africa?

Investing in a South African franchise requires lower capex compared to investing overseas, plus the franchise market in South Africa is robust and growing.

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.

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.

How do you get funding for a franchise?

Options for funding a franchiseFranchisor financing. ... Commercial bank loans. ... Small Business Association (SBA) loans. ... Alternative lenders. ... Personal assets. ... Rollovers as business startup (ROBS) ... Crowdfunding. ... Friends and family.

How much is Shoprite franchise in South Africa?

It's currently not possible to buy a Shoprite or Checker's store in South Africa, but you can purchase an OK Foods, which is also a subsidiary of the Shoprite Group. An OK Grocer franchise is currently going for R2. 85 million, Wasserman explains.

How much does a Vodacom franchise cost?

At a cost of about R 26,000 (US$3,450),1 prospective owners can start a franchise to operate five cellular lines in a pre-approved location.

What franchise makes 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.

How does a franchise work in SA?

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.

How much profit does a franchise make in South Africa?

The median annual turnover claimed is R2,680,000, while the average net profit claimed is 9% in the last financial year. Within the first year of operations, 46% of franchisees expect to break even; however, a downward trend is noted for breaking even in the first six months.

Which franchise owners make 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 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 franchise of KFC in South Africa?

One store costs in the region of R6 million. 2. Prospective franchisees must be prepared to undertake a training programme that can last up to 6 month and self-fund themselves through this. This may include visiting an overseas training facility.

How much does a KFC franchise owner make?

Although the exact salaries of KFC franchise owners are kept private by Yum! Brands, it is estimated that they take home around $120,000 per year. This is grounded on the average salaries of food franchise owners. Individual KFC units produce revenues between $942,000 and $1,000,000 per year.

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 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 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.

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.