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South Africa franchise trends 2016

Today there are millions of franchise businesses in over 300 business categories, so there literally is a business to suit every interest and niche.

According to the 2016 Franchise Business Economic Outlook report, franchising as a whole will continue to thrive. It’s no surprise as people are increasingly finding their own opportunities rather than going the route of a traditional employee income model.

Kids and pets categories

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We’ve seen the child enrichment category blossom, and it will continue to thrive. Any business model related to enriching or expanding the world of kids (infants to school children) is hot right now. It’s about getting kids moving, thinking, reading and believing in themselves. It’s exposing them to new experiences, in many cases going mobile, to where they are. These businesses provide a sense of accomplishment and community in a supportive environment.

These are also franchises that fill a need for busy parents. Kidsbrain is all about learning maths, as is ALOHA Mental Arithmetic. And Bricks 4 Kidz is for little science buffs.

The pet industry is an estimated $60 billion industry in 2016, so you can guess that pet-related franchise businesses are thriving. There is an overall shift in thinking about our pets – they are seen as part of the family. With that comes pampering and care, presents at holidays, birthday celebrations, outfits, shampoos and care goods, and overall wellness products. The pet industry is a nearly recession-proof business because we’re seeing that people are spending money on their pets, no matter what.

Franchise activists

Franchisees are making themselves heard. While the parent company, in many ways, calls the shots, the franchisees as a whole are extremely powerful and can be a tremendous influence on the franchisor. We’re now seeing franchisees “taking to the streets” and demanding change, and in many cases, they are getting that change. One recent example happened at the headquarters of McDonald’s. Franchisees banded together to demand operating changes as their profits began to dwindle. The result was the demise of the Dollar Menu, among other changes.

Not only are existing franchisees speaking up, but former franchisees are taking to the Internet to tell their experiences: whether to warn others from making the same mistake, to damage the reputation of the franchisor or to vent frustration. Regardless, the stories are out there, and it’s your responsibility to do the research and find out what’s happening with the franchise you’re investigating.

Here come the Millennials

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Multiethnic Group of People Social Networking at Cafe
Robert Churchill/Getty Images/iStockphoto

In so many sectors of life, we see the impact of Millennials (ages 18-34), and franchising is no exception. 66% of Millennials are interested in entrepreneurship, nearly 30% of all entrepreneurs are between 20-24 years old, over 25% are self-employed, and they launch 160,000 start-ups each month, according to the International Franchise Association (IFA). Because of this, the IFA has launched the NextGen Franchise initiative, a global competition to recognise and support the enormous contributions that young entrepreneurs have, and the impact of their contributions (this year with 450 applicants from 46 countries).

Microfranchising

We’re seeing Millennials making a big impact on the last trend in our list, microfranchising. This is a model designed to help people get out of poverty. Microfranchising is similar to a traditional franchise, but with scaled-down startup costs so that it is affordable to people with a low income. It is a ready-made business opportunity model that someone can step into. It’s often referred to as a business in a box/bag/backpack, because in many cases, everything the person will need to start their business literally is provided in a bag, box or backpack. Initial training is provided, along with ongoing support and mentoring.

Microfranchising is especially impactful in developing countries, where people do not have the skills or resources to start their own businesses from the ground up, but once provided with a ready-made business – complete with the supply chain, systems, any legal issues, licensing or real estate – they can provide a living for themselves and their families, and eventually expand their business and provide jobs to others. One important characteristic of microfranchises is that they are very reactive, ready and able to adjust to failure and improvement.

Franchising remains a strong business option that offers those with an entrepreneurial spirit a chance to launch their own business based on a proven, established model. As the above list proves, it is a dynamic, living business model that readily reflects and supports a rapidly changing world.

South Africa success stories of 2016

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Ascot Diet Clinic

As part of the growing number of fitness franchises, weight loss business opportunities are a natural extension of the health and wellness types of franchises springing up as they continue to grow. Helping others live healthier, more active lifestyles while promoting healthier bodies and minds are just a couple of the ways weight loss business opportunities can be a great career goal for the proper individual. Here’s one of South Africa’s runaway successes.

Ascot Diet Clinic was set up in 2000 by pharmacist Paul van den Berg. Paul developed his own unique slimming program, using injections as well as a range of other homeopathic medicines and slimming techniques. Today the Ascot Diet Clinic program has a high profile, with clinics in South Africa and Mozambique, as well as global clients in Australia, England, Dubai and Zimbabwe. 

Working closely alongside pharmaceutical manufacturers, Ascot Diet Clinic will use their 16 years’ experience to devise a reality program for contestants to safely lose as much weight as possible by using our program as well as some exercise programs.

Donuts: Dunkin' and Krispy Kreme

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South Africans wanting hot glazed doughnuts with a steamy cup of coffee can now choose between two US brands: Dunkin’ Donuts and Krispy Kreme. Dunkin’ Brands Group Inc opened its first outlet in Cape Town on Thursday, the first of five scheduled to start in the coastal city by the end of 2016.

Dunkin’ intends to open in Johannesburg in the first half of 2017, where the company will compete directly with rival Krispy Kreme Doughnuts Inc., which already has a presence in the country’s most populous city. Dunkin’ follows other US chains such as Yum! Brands Inc’s Pizza Hut and Starbucks Corp, in entering South Africa in the past two years, seeking to tap consumer demand for popular U.S. fast-food brands. Krispy Kreme, which opened its first Johannesburg store in November to lengthy queues, has five South African outlets already.

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