how to franchise in south africa

How To Own A Franchise In South Africa

• Research Start by identifying five franchises and read up on them to know which one would resonate with you the most. ...
• Look for funding Talk to different banks and choose one that has experience with companies that operate in the industry you are interested in. ...
• Choose a good location Location can make or break your business. ...

Full Answer

What is the Best Franchisee recruitment website in South Africa?

Have A Franchise For Sale? whichfranchise.co.za is the leading website for franchise information, advice and opportunities in South Africa, and hence one of the top franchisee recruitment websites. This sign-up form uses JavaScript for improved security.

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

How much does it cost to buy a KFC franchise in South Africa?

Prospective franchisees need to show that they have the required funds to fund up to 5 or more kfc stores. One store costs in the region of R5. 5 million. What business can I start with R10 000 in South Africa?

Is it hard to become a franchisee?

While becoming a franchisee may seem like an onerous process, the real challenges still lie ahead as you grow your business. With more than 650 franchise systems in South Africa, many prospective franchisees are finding the right franchise to be a daunting process.

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

How do I get my first franchise?

How to Start a FranchiseEvaluate the costs. Just like any other small business, there are initial costs to getting your franchise off the ground. ... Franchisor requirements. ... Franchise disclosure document. ... Review the franchise agreement. ... Choose a location. ... Training. ... Open for business.

What is the most affordable 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 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 it to buy 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 franchise owners get paid?

How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.

What are the disadvantages of franchising?

Buying a franchise means entering into a formal agreement with your franchisor. Franchise agreements dictate how you run the business, so there may be little room for creativity. There are usually restrictions on where you operate, the products you sell and the suppliers you use.

Do franchise owners have to work?

Owning a franchise unit can be demanding, requiring work of 60 to 70 hours a week, but owners have the satisfaction of knowing that their business's success is a result of their own hard work. Some people look for franchise opportunities that are less demanding and may only require a part-time commitment.

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 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.

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.

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...•

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.

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

Which franchise is the leading website in South Africa?

whichfranchise.co.za is the leading website for franchise information, advice and opportunities in South Africa, and hence one of the top franchisee recruitment websites.

Is franchising a good idea?

Franchising your business can be a very successful way of expanding your business, provided that you have a business to begin with. Many of today’s well-known brands have used franchising to accelerate the growth of their existing businesses, building national or even international brands in the process. However, franchising should ...

Is franchising a test ground?

Franchising should not be as seen as a testing ground for new or unproven business ideas but as a means of expanding an already successful business . You need to therefore have an existing business that is trading successfully before you consider franchising your business.

Can a franchise consultant help a franchisee?

Generally, the answer must be a resounding ”yes”. Seeking input from qualified outsiders will bring an extra perspective to the business to be franchised and help the prospective franchisor understand the intricacies of this step. Initially, the consultant will help the franchisor to decide whether franchising is right for the business and its culture. If so, he or she will advise on developing the franchise package. Several professions can become involved, most often a franchise consultant, an accountant and a lawyer.

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.

When did South Africa start franchising?

Since South Africa opened its first franchise in the 1960’s the rest of Africa has looked on in awe at the rapid development and success of this business format and, since its establishment in 1979, the Franchise Association of South Africa (FASA) has been the inspiration and point of contact for many other African countries wanting to establish franchising in their respective countries.

What is a FASA?

The Franchise Association of South Africa (FASA) is a trade association for franchisors, franchisees and the professional organizations that service the franchise industry. Toggle navigation. Home. About.

What is the WFC?

The World Franchise Council (WFC) is a non-political association of more than 40 national franchise associations from around the world. World Franchise Council . Proudly South African was established in 2001, born out of the 1998 Presidential Job Summit which was convened by the late former President Nelson Mandela.

What is the role of FASA?

With franchising universally accepted as one of the most successful business formats, FASA's role is to continually promote the advantages of franchising both to business entrepreneurs, to prospective franchisees and to the public at large.

What is the purpose of the Sefa?

sefa sefa’s core function is to foster the establishment, development and growth of SMMEs and Co-operatives, and to contribute towards poverty alleviation, job creation and economic growth.