Low Cost Franchises
Franchise investment levels vary according to industry and size.
It is advisable to scout around for business opportunities that match your experience and personality. Opportunities range from home-based, low-cost franchises in the region of R50 000 to R100 000 to medium-size franchises of between R100 000 and R200 000.
You can search the Whichfranchise website to find a franchise in your investment range. Typically, they include businesses offering mobile fast food, courier services, billboard advertising, and educational offerings.
Given the focus on developing small and medium enterprises, low-cost franchises are becoming more popular, particularly if they are affordable, and offer individuals opportunities to benefit substantially from their efforts.
Minister of Small Business Development, Lindiwe Zulu, told Parliament recently that one could not underestimate the power of small and medium enterprises, whose impact on the economy was pivotal to job creation.
Does ‘low-cost franchise’ mean financial institutions will cover a higher portion of the costs?
Not necessarily. While every finance application is based on the individual circumstances of the potential franchisee, most banks expect you to contribute at least 50% of your own money towards the total investment.