Why choose franchising in South Africa?
South Africa is an exciting place to do business and you needn’t do it alone. The country of South Africa boasts a dynamic and growing franchising sector, with many opportunities for you to leverage the strength of a strong franchise brand. This article explores some of the reasons why you should consider buying a franchise in South Africa.
Take charge of your life
The reality is, jobs are hard to find, and many employers are cutting jobs to stay afloat. It’s not only youth who are finding it hard to get jobs, even skilled workers are struggling.
South Africa has its fair share of problems. The power crisis, slow economic growth and labour unrest have all dented South Africa’s reputation. This doesn’t mean that there aren’t opportunities. If you start your own business and get it right, the sky is the limit.
Why go the South African franchise route?
Although franchising is well-established in South Africa, it is not always well understood. Simply put, a franchise is a recipe for business success. An entrepreneur has built up a business from scratch. He or she has worked hard to turn it into a great business. The business is now doing well, and the entrepreneur is ready to expand. Instead of hiring managers to operate branches, the entrepreneur decides to franchise. As the franchisor, he or she offers others – future franchisees – a chance to operate their own businesses under a common brand.
As a franchisee, you will benefit from the following advantages:
- It will be much easier to get started because of the support of the franchisor
- Leverage strong brand and access to tested system
- Access franchisor’s experience and receive initial and ongoing support
- Benefit from national marketing and bulk purchasing programmes
- Banks are more likely to extend financing to franchises as opposed to independent start-ups. To learn more about franchise finance, click here
As a franchisee, you will benefit directly from your hard work. Best of all, you build up an asset you can pass on to your children or sell to help you retire comfortably.
Opportunities exist in South Africa
Despite all the economic challenges, franchising continues to be successful in South Africa, and there’s certainly room for growth. The sector is, in fact, a vital part of the backbone of our country’s economy.
A survey conducted by the Franchise Association of South Africa (FASA) in May 2015, shows that South Africa has more than 680 franchised systems, more than 30 000 franchise outlets and 17 franchise business sectors. The sector employs more than 300 000 people and is certainly a significant contributor to the economy.
By franchising in South Africa, not only will you create a job for yourself, you will create work for many others as well.
Franchising to the rescue!
The fact that there are over 600 franchised brands across the country is a testament of the franchising opportunities that exist in the country, and it means your options are endless. The following are some of the popular industries you can invest in:
- B2B services
- Childcare and education
- Fast food and restaurant
- Health, beauty and fitness
- Personal services
The survey shows that 75% of franchisees have been in business for more than six years, and 44% for longer than 12 years – proof of the sustainability of the franchise model.
Franchising requires commitment
While franchising, particularly in South Africa is a great way to own your business, you won’t achieve success overnight. You have to commit fully to the business. Also, becoming a franchisee is not right for everyone. Before you move in this direction, you need to understand how franchising works and what the possible pitfalls are. Our franchising experts will guide you should you need assistance or you can take our
Overall, to get the best out of franchising, you need to participate enthusiastically in every programme the franchisor offers. This is what being a franchisee is about. If this sound like you then start saving for initial investment today! Joining the franchise of your choice in South Africa could be the best investment you will ever make. Get started by reviewing some of the franchise opportunities available on whichfranchise.co.za.