Welcome to the October edition of our newsletter. In our previous edition, we talked about some of the benefits and pitfalls of becoming a franchisee.
Seeing that the end of the year is approaching rapidly and with it the period when everyone makes plans for the New Year, we will focus on franchise opportunities, how to locate them and how to check them out.
Before we tackle this complex topic, however, we bring you the key findings of the most recent survey into franchising in South Africa . And before we do that, a brief reference to a case study with a difference: This month's hero started out as an employee, became a franchisee and then took the ultimate leap of faith by becoming a franchisor. To find out who he is and read his exciting success story,
Anyone who attended the FASA awards evening could not help feeling that franchising in South Africa is alive and well. Figures released by Bendeta Gordon of Franchize Directions on an ongoing research project known as the Franchise Factor, make exciting reading.
There has been an increase of 24% in franchised outlets, now at 25 870 and combined sales achieved through franchised networks is R188 billion and accounts for 12% of South Africa 's economic activity.
If you are in a dead-end job or, worse still, if you don't have a job at all, the idea of starting a business looks attractive. And it is. In your own business, you call the shots and you get to keep all the profits the business generates. Sounds idyllic, but beware. Starting a business from scratch and building it to a size where it becomes a stable source of income is not for the fainthearted. Free enterprise can be a hard taskmaster and many of those who have tried have failed.
Franchising to the rescue! By becoming a franchisee, you can be your own boss and enjoy the fruits of your labour in direct proportion to your effort but instead of entering into a period of trial and error, you operate under an established brand using tried and tested systems and procedures. You also enjoy the initial and ongoing backing of the franchisor, and if the going gets tough there is always a shoulder to cry on.
The results of the most recent survey into franchising, given earlier in this newsletter, prove that franchising works. Why is it then that some people – fortunately a very small minority – are disillusioned with franchising? Two main reasons…
The website www.whichfranchise.co.za contains further information on how the concept works, and lists bona fide franchise opportunities. To simplify your search, you can select franchise offers according to various criteria, most notably by business sector and investment level. And if you have any specific franchise-related questions, send an email to experts@whichfranchise.co.za and our panel will provide answers, usually within 24 hours and at no cost or obligation to you.
Black Steer – Steak house famous for BBQ Ribs, catering for broad segment
King Pie – Biggest pie franchise group, retailing of pies
Mini Melts – Retail ice cream business
Soda King – Manufacturing and sales of carbonated soft drinks and related beverages
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