In the fourth installment of this series, we are down to seven useful points. While all franchise industries are of course fabulous, these seven are particularly appealing for different reasons and they deserve extra attention if you are considering buying a franchise in South Africa.
1. Food Franchises
This had to be number one, didn't it? The food franchise industry remains the leading franchise industry both in South Africa and around the world. It was fast food restaurants that first accelerated the franchise system in the 1950s, with all sorts of food outlets – coffee, pizza, sandwich bars – becoming franchises during the years that followed. This year's Top 100 Global Franchises Report found that even now, six out of the top 10 international franchises are food chains. Subway is the largest with more than 38,000 units in over 100 countries. The well-known brands may charge a higher initial investment, but when run correctly they are almost guaranteed to see a great profit. It is a recession-proof industry with a high market demand, as everyone likes to eat out now and then.
2. Education Franchises
Over 16 million people in the population are aged 14 or under, and there is always a need for tutoring services. Parents everywhere make their children a priority and are willing to invest in their studies. It is emotionally rewarding to run an education franchise, and if you enjoy helping people and working with children then you will definitely find yourself looking forward to going to work. Take a look at Kumon Education, the largest independent education provider in the world, which helps children with two core subjects: maths and English.
3. Internet Franchises
The main appeal of this industry is that most internet franchises can be run from home, in your own time. Because they require little more than a computer and an internet connection to get going, they are relatively cheap to buy and operate with no need to purchase stock, rent a property, or employ staff. Low overheads mean more profit goes directly into your pocket. Contrary to common belief, you rarely need to have IT experience to get started – basic knowledge of how to use a computer will suffice.
4. B2B Franchises
The business-to-business franchise usually takes the form of providing a service that helps another company to run their business. This kind of franchise has many advantages: usually the service can be offered to SMEs and larger companies alike and therefor the market is enormous; businesses are always willing to give good feedback and advice on how to improve your services; often you can run the franchise from home; the working hours tend to reflect those of your customers and therefore weekend and late night work is not necessary; and overheads are low. The B2B franchise Business Cost Management Limited is a perfect example, providing cost reduction consulting services to companies of all sizes.
5. Health and Beauty Franchises
This multi-million rand industry is growing all the time. It includes both fulfilling franchises where you can help people to improve their health – such as Good Feet®, which sells arch support products to reduce foot and back pain – and exciting beauty franchises based on the latest fashion and technology. Experience in the industry is rarely required as full training and support is given.
6. Retail Franchises
The retail industry is a large chunk of any economy, and people are always going to buy goods. There is a wide range of franchises within this category, selling everything from food to gifts to clothes. A retail franchise is usually already a strong and established brand, which means that you will have customers before you even open shop. Furthermore, centralised purchasing allows you to buy stock at a discounted price, and advertising and marketing normally come as part of the deal. The popular Sing Your Name sells personalised children's gifts and is offering multiple start-up packages in South Africa at the moment.
00000181-7b54-d6a8-a1e5-7b7588820000 7. Home Improvement Franchises
Have you always been good at the DIY stuff? You don't need to be an expert in the world of commerce to become your own boss – there are many franchises that give the more hands-on type the chance to set up their own business. One such industry is home improvement, and it's a growing one, as people have less time nowadays to do such tasks themselves. Consider the franchise Mr Sandless™, which refreshes wooden floors without using high cost sanding. Old flooring can be unattractive and even dangerous, and Mr Sandless™ provides a steady income.