Franchising in South Africa continues to grow in leaps and bounds, and so does interest in the whichfranchise.co.za. In this month's edition of our newsletter, we introduce you to a franchise that is healthy, profitable and fun – an unbeatable combination if there ever was one! We then talk about something that is not directly linked to franchising but of interest to us all, namely a new type of computer virus you need to guard against. Lastly, as promised in the first edition, we publish a number of questions visitors to our website have posed and the answers given by our experts.
We hope you enjoy this edition of the whichfranchise.co.za newsletter. As explained last time round – this is your newsletter and we want you to shape its content. Please keep your comments and questions rolling in, and remember: there is no such thing as a stupid question! So, for free advice on any issue relating to franchising, or just to make a point of interest, write to experts@whichfranchise.co.za
After working in the computer industry for 12 years, Alan Verwey was retrenched. He saw this as an opportunity rather than a disaster because he had always wanted to own a restaurant. However, he was reluctant to risk his retrenchment package on an unproven venture so, when Kauai offered him the opportunity to acquire a stake in Kauai Claremont, he eagerly accepted. Click here to read Alan's story
No, we are not talking about the current flu epidemic here, what we are referring to is a new computer virus. It brand new, hasn't even been named yet but it's taken sufficiently serious by the Microsoft boffins that they issued a cautionary. Quite clearly, the good people at Microsoft don't like to issue “cautionaries” because by doing so, they tacitly admit that a hacker has managed to outsmart them – again! So if they do issue warnings, it is best to take them seriously. Read more…
Under this heading, our panel of experts replies to questions from readers. We receive hundreds of those and respond to them promptly via email but cannot publish them all. Click here for a selection dealing with a cross section of problems our visitors raised.
We all know that modern-day franchising originated in the US . It would be safe to assume, then, that every American with any interest in the world of business would know everything there is to know about franchising. Should this assumption be true, telling them about the concept would not be necessary, akin to shipping coal to Newcastle . A recently completed study reveals that this is not the case. Read more…
Many people think that franchising is all about small business, but this is no longer the case. A survey commissioned by the International Franchise Association and carried out by PricewaterhouseCoopers puts the spotlight on the size of the franchise movement.
In this particular instance, the focus was on franchising's role as an employer. PwC report that in the US alone, 767 483 franchisees provide employment for 18 million people. As an aside, they state that this generates an annual payroll of $506,6 billion. Read More...
Chipsaway - Repair of minor dents and chips on vehicles
Express Personal Services - Full service staffing business including temporary & full time placement, executive search & recruitment
Kauai Health Food and Juice Co - Take away restaurant focused on healthy food and smoothies
In the case of a franchise, a lot, as anyone who has ever started an independent business will confirm. Businesses that start with a known brand name above the door can expect to start trading virtually from day one. This reduces the difficult period until breakeven point is reached. (Breakeven is the point when the business's sales revenue covers all costs but does not generate a profit.)
Given the high rentals habitually charged by shopping centres, this is an important milestone, and one that cannot be reached soon enough. So, even if one removes all other advantages of going the franchise route from the equation, the advantage of brand recognition alone makes it all worthwhile.
Issues surrounding the integration of minority franchisees into the mainstream of the US franchise scene are not dissimilar to our BBBEE efforts, a hot topic in South Africa at the moment. For this reason, we look forward to the release of the IFE 's full study with interest and as soon as we have further information, we'll make it the lead topic of a future Whichfranchise newsletter.
In an earlier newsletter, we reported on attempts by international fast food chains to reduce service times. Information released by the NPD group which tracks consumer and retail trends suggests that this trend is not limited to fast food only. Read more…
Conclusion
The whichfranchise.co.za website contains guidelines for assessing a franchise opportunity. And if one of your questions remains unanswered, just write to us!
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