The franchise industry in South Africa has been growing rapidly in the last two decades. Today there are over 700 franchise systems with nearly 500,000 employees. This is a significant part of the South African economy. Most franchise systems can be found in the gastronomy, retail or fast-moving consumer goods sector.
Compared to other self-employed people, franchisees are often happier and more confident about their future. The reasons for this: As a franchise partner, you are part of a wider network and benefit from multiple support systems. In the following article we will explain the benefits in detail and help you understand what makes a franchise so special.
Lower Risk and Investment
As a new franchisee, you are investing in an established business model and proven brand. The franchisor and other franchisees have already tested it and are successful. This significantly decreases your investment risk.
Because you are investing in a proven business model, you are more likely to receive financial support from a bank and can secure a loan. Very often the franchisor has contacts to banks and financial services that you can benefit from.
Training and Support
This is probably the biggest advantage for franchisees: The training and support they will receive from their franchisors. Right after the contract signing, they can help with finding a the right location for your business. They can also assist with lease negotiations and often have great contacts to product suppliers. You will also receive comprehensive training and gain knowledge about the business, best practices and how to run it successfully.
Most franchisors provide some form of marketing support. This can for example be marketing materials, a website or marketing consulting. While the local marketing in your area is often up to you as a franchisee, the marketing for the company as a whole is controlled by the franchisors.
An important part of the support from the franchisor is technical support. This can include access to an intranet or a sales platform or a hotline you can call when you need help with technical issues. Apart from that, many franchise system work with field representatives who visit the franchise partners on a regular basis and are a first point of contact.
A strong network
When you start a franchise, you are self-employed, but you are not on your own. You can rely on a big network that includes the franchisor but also other franchisees. Especially in the beginning, the other franchisees can be of great value. They were in your shoes and know the challenges of the business. Make sure to take advantage of this and ask as many questions as possible.
A lot of franchises offer regular meetings or events where franchise partners from different regions can connect, and the franchisor presents the latest news and developments. Make sure to take part in these events! They are a great opportunity to strengthen your network.
Summary
You are thinking of starting your own business in South Africa but are afraid of the risks? Maybe a franchise could be an amazing option for you. As a franchisee, you benefit from an established brand, can rely on a comprehensive support structure and are part of a network of similar-minded business owners. Your franchisor will do everything to help you succeed – your success is also their success.