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Anita du Toit

Franchising Plus Senior Consultant and Partner
Anita Du Toit - Franchising Expert

Anita du Toit, Franchising Plus Senior Consultant and PartnerMarketing and Finance Comes Together

With her career in franchising dating back to 1998, Anita Du Toit has steadily grown her expertise. Anita has experience in the financial aspects of franchising, government social franchising and even the development of franchising products.

Today her speciality is conceptualising franchising strategies in unique and creative ways, researching and managing projects. She is blazing her own trail and bettering the franchise industry for it.

From the Academia to Franchising

Anita’s formal education extends beyond her masters degree in Marketing obtained with distinction, from the University of Pretoria in 2000, to include authorship of journal articles. She has had articles published in the Journal of Marketing Channels and Franchising Law and Policy Review.

Additionally, her papers were accepted for reading at the of International Society of Franchising conference in San Diego in 2000 (she was a co-author of this particular paper), then again Orlando in 2002, San Antonio in 2003, and Las Vegas in 2004.

Anita became a consultant at Deloitte & Touche. She was involved in product development for the franchise market including the E test and franchise systems audit.

While Anita was rigorously expanding her academic achievements, she was also consulting to diverse clients within the automotive, retail and telecommunications industries, thereby growing her experience in the South African franchising sector.

She then moved on to take a role at FNB Commercial as a Franchise Specialist and gained experience in the financial aspects of franchising – at FNB she was instrumental in introducing the Franchise Think Tank.

After her productive involvement with FNB, she moved to Franchising Plus where she was commissioned to write papers on both social franchising and Tandem franchising for the franchise division at the time which was known as FRAIN. Anita delivered another paper on Tandem franchising at Economics & Management of Networks (EMNET) conference in Rotterdam in 2007.

Anita Du Toit has made sizable contributions to social franchising by developing a government social franchise model for the North West Health Department. She has also consulted with 3 of the participating organisations who, together with the University of Cape Town and the International Centre for Social Franchising (ICSF), form a social franchise accelerator.

Today she is a partner and senior consultant for Franchising Plus.

Frequently Asked Questions

I want to venture into the franchise business can the bank finance me for the whole cost or must I have my own collateral (my own contribution)?

The bank will never finance you 100% for a franchise business, depending on the business, the bank will most likely require you to contribute a minimum of 50% own contribution (cash-unencumbered funds) toward the purchase or set up of the business and the bank will assess funding the balance. Read more on financing a franchise

I am about to sign a franchise agreement. My problem is this: I have just enough money to fund the transaction, but really only just! Is it wise to invest all my cash or should I rather take out a loan and keep a nest egg, just in case?

You should definitely keep a nest egg! Even though a franchise will typically reach break-even sooner than an independent business with no track record, it still takes time. Your franchisor will have given you projections, but you need to remember that these are assumptions only. With the best will in the world, nobody can guarantee that your business will perform exactly in line with projections. One more tip: If your business is a cash business, for example a fast food outlet where most people pay cash for their purchases, cash flow should pick up fairly quickly. If so, you could invest part of your capital with your bank and use the investment as surety for an overdraft. On the face of it, it may sound daft to deposit money at a relatively low interest rate, then borrow against it at a higher interest rate but consider this. You would draw on your overdraft only during valleys in your cash flow, perhaps just for a few days each month. However, your investment will earn interest on an ongoing basis, leaving you with a net gain.

I would like to know how much cash I need to invest in a franchise and how much I can expect to earn a month, say over the next three years?

Costs of setting up a franchise vary tremendously. They are influenced by the type and size of business you are interested in, the reputation of the brand (which could affect the amount payable as upfront fee) and working capital requirements. Many of the listings on our website give an indication of investment levels. To answer the second part of your question is equally difficult. Franchises do not come with guarantees, your earnings depend on the viability of the business of your choice and the amount of effort you put into its operation. Speak to several franchisors, once negotiations with one progress beyond the initial information stage, you should receive a disclosure document which will provide among other things detailed financial information. Most of the banks require and unencumbered cash requirement of between 30% and 40% of the total investment required.

Ask Anita a Question

Take advantage of Anita Du Toit’s wealth of experience and incredible knowledge of the franchising industry. Ask Anita Du Toit a question.

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