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
How do I turn my business into a franchise?
How to Franchise a BusinessMake sure your business is ready to franchise.Protect your business's intellectual property.Prepare a financial disclosure document (FDD)Draft a franchise agreement.Compile an operational manual for franchisees.File or register your FDD.Set a strategy to achieve your sales goals.
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 can I get franchise in South Africa?
How to Buy a Franchise in South AfricaApproach the franchisor. ... Complete the application process. ... Find out more. ... Find the right location. ... Secure the finance. ... Sign on the dotted line (but read the small print first) ... Preparing for launch.
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 fee paid monthly?
Franchise royalties are usually collected by your franchisor on a monthly basis. Like marketing fees, these fees are based on a percentage of your revenue.
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 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. The price does typically increase if one is purchasing an existing KFC.
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 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.
What do you need for a franchise?
What Is a Franchise?Money for Getting Your Operation Off the Ground and Running. ... A Business Plan. ... Exceptional Management Skills and Experience. ... Regulatory or Legal Requirements. ... A Good Accountant.
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 much money is needed to start a franchise?
Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.
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. The price does typically increase if one is purchasing an existing KFC.
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.
What is franchising a business?
Franchising is a fantastic method of raising capital and employing dedicated, passionate and motivated management (franchisees) to grow a business concept quickly and effectively. When implemented correctly a good franchise results in a win-win situation as it also reduces the investor’s risks. However, if it was easy, every franchise would be ...
Why do you wish to franchise your business – if your business is that good, then why share it with others?
Normally the main motivation to franchise a business is that the owner wishes to expand and needs additional capital to do so. In addition, the business will acquire dedicated and committed business partners (franchisees) who will help the original owners to achieve their objectives. In this way the business will achieve critical mass more speedily and both parties will benefit from:-
What happens if you don't fulfil your responsibilities?
It is a certainty that if you do not fulfil your responsibilities correctly your franchisees will let you know in no uncertain terms. It is also a sad reality that many will blame you for their failures even if you have done everything you can to help your franchisees.
Why is it important to understand the difference between hot dog vending and hot dog vending?
Understanding this difference is critical as it determines how you operate your business. It is also essential that you understand clearly what your responsibilities are so that you do not inadvertently mislead prospective franchisees. The hot dog vending business explicitly shows the difference between the two options.
Do franchisors have to have capital to achieve critical mass?
Very few potential franchisors have the capital to achieve critical mass in their marketplace in the short term. There are obviously exceptions but they are not the norm. As such a new franchisor should aim to achieve critical mass in small but high profile geographical areas.
Is royalty income sufficient for franchisees?
In the early days of a franchise the royalty income from the franchisees will not be adequate to cover the costs incurred in establishing the infrastructure necessary to support them. In addition the franchisee’s contribution to the marketing fund will be smaller than that of the franchisor.
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.
Do I need to be an entrepreneur to become a franchisee?
The debate about whether you need to be an entrepreneur to become a franchisee or not, has raged in academic circles for some time now. Does a new Franchise need an Entrepreneur to make it successful, or has franchising become less needy of entrepreneurial spirit? Read more…
Why is a franchise agreement important?
As there is no specific legislation or regulation for franchising, the franchise agreement becomes all-important in determining the rights and obligations of the franchisor and the franchisee and the relationship between them.
Is a franchise transaction complex?
The franchise transaction is complex and the franchise agreement must respect that complexity. To the franchisee, the franchise contract represents an investment. Your business depends upon it to the extent that the business may disappear should it terminate.
Can you change a franchise?
If you are buying a franchise buisness, you are going to be working, selling and promoting the product or service for a long period of time. You can’t change or develop the product or service, so make sure that the franchise has long term appeal and its market is not threatened in any way.
Is franchising a risk?
Setting up a business is a risk although franchising should minimise it you must be aware that things can go wrong and whatever you invest could be in danger and if you borrow money you may well be left with debts to repay.
Is it easy to own a franchise in South Africa?
Although buying a franchise in South Africa is not an easy way to owning your own business, in some cases it is a lot easier than starting from scratch. For a start you can see your potential business in operation before you invest a penny.
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.
What is the Daily Coffee Group?
The Daily Coffee Group is a fast-growing and truly South African coffee franchise comprising more than 25 coffee cafés and set to further expand nationally. Coffee is their business and they have two tailor-made franchise models – The Daily Coffee Café and The Daily Coffee Express – from which franchisees can choose to offer their customers what The Daily Coffee Group has become renowned for – good coffee and a warm emotion!
What is chem dry?
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.
Where is Braai Hut located?
Braai is South Africans favorite food and the Braai Hut brand was started in Bloemfontein in 2013 by Kobus Aggenbacht and they started franchising that same year. The concept is to offer a convenient take away to everyone without having to wait for the next braai.
What is Rockefeller Real Estate?
Rockefeller Real Estate is based on a strong, local, national and international portfolio. Their focus is on the sale and placement of high-quality real estate and land as well as commercial real estate. The Rockefeller family is a team of employees for whom nothing is impossible. They are firmly convinced that their expertise and proven solutions, achieve what is seemingly unattainable.
What is firm slimming?
The Firm Slimming & Health Clinic specializes in non-invasive slimming treatments. The Firm Slimming & Health Clinic was founded in 1994, in Durban, and has grown to 39 Franchise clinics, situated around South Africa. Since 1994, The Firm’s vision has been to empower people through a highly effective weight loss programme to succeed at weight loss and maintain a desired weight.
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.
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 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.
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.
