New Impetus for Franchising
Franchise guru Eric Parker was interviewed on Kaya FM the other night. The interview was supposed to focus on the latest edition of Start your own business and make lots of money a bestseller in its field which Eric wrote together with Kurt Illetschko. The interviewer called it one of the most readable books on small business topics he ever came across and everyone who managed to get hold of a copy agrees.
All the excitement about the new book notwithstanding, the discussion soon veered off towards franchising. No surprises here, given Eric’s strong affiliation with the franchise sector, this could be expected.
In response to the statement is franchising a big deal in South Africa made by the interviewer, Eric explained that although franchising is reasonably successful here, we haven’t even scratched the surface yet. To prove his point, he quoted some compelling figures:
- In the US, franchising holds a 56% market share in retail and services
- In Australia, this figure is around 30%
- In South Africa, it is a mere 12%
Franchising is growing in South Africa but, being impatient by nature, Eric feels that this growth is far too slow. Mindful of the fact that franchising holds the key to addressing South Africa’s economic problems, he has initiated several initiatives that are designed to put franchising’s growth on steroids. His latest brainchild is The Franchisor Incubator. This initiative has set itself the target of creating franchise opportunities that are more affordable for the proverbial man in the street than the average fast food restaurant or retail franchise.
Eric has brought several high profile sponsors on board and is working hard behind the scenes to get the venture off the ground by February 2010. He is not ready to release details just yet but the basic concept revolves around bringing small existing businesses into the incubator and nursing them towards becoming franchisors.
Here’s wishing you luck with this new brave venture, Eric, both you and your latest creation deserve it!