The franchise industry in South Africa has enjoyed a successful first quarter and is set to continue to thrive in 2018. Franchising has proven itself to be a resilient and profitable business in South Africa, even during times of economic downturn. As a business model, franchising continues to be an excellent choice for people who want to run their own business without the financial, physical and personal stresses of establishing their own company, as well as for those who have already enjoyed a taste of entrepreneurship and are keen to challenge themselves.
The year is still full of potential and possibilities to take control of your career and consider franchising as a viable possibility. When deciding on a franchise it is crucial to consider what industry the franchise operates within. Investing is a big commitment, and it is important to be aware of which industries are the most popular and lucrative, in order to ensure a good return on your investment.
Some trends come and go but the following industries have proven time and time again that they are lucrative, resilient and popular among franchisors and consumers alike.
Fast-Casual Dining and Quick-Service Restaurants
In today's society people are busier than ever, and quick-service restaurants and fast-casual dining experiences have become increasingly popular. Consumers want quick, efficient service without compromising on taste. The minimum investment required for fast-casual restaurants and QSRs can range from very high to moderately low; this means that there is something to cater to every budget. Although this is a very popular industry the market is not yet saturated, as there are plenty of food franchise options available to suit a large variety of tastes.
Beauty and Grooming
Today's consumers are taking a more active interest in their physical appearance and wellbeing than ever before. Beauty businesses like hair salons, makeup retailers, spas and grooming salons continue to be popular. The investment fee and overheads for these franchises can vary greatly, and they can be an excellent choice for both experienced businesspeople and new entrepreneurs. The rise of South Africa's middle class means that people have more disposable income to spend on themselves, meaning that they are able to fund this heightened interest in self-preservation and appearance.
Fitness
Health and fitness franchises have proven themselves to be lucrative investments. Capitalising on the heightened interest in healthy living and exercise, models like gyms or weight-loss programmes lend themselves easily to franchising. Fitness franchises can be a smart choice for first-time franchisees, as the business model, operations and branding are often firmly established. Fitness franchises can be run full time or part time, making them an attractive choice for dedicated entrepreneurs as well as those with busy lifestyles.
Health Care
The world's elderly population is rising and the needs of this vulnerable sector must be met. Franchises that specialise in health care, particularly personal home help, have become increasingly popular in recent years. As much of the work is carried out in clients' homes, the overheads for this line of business can be very low. Caring for others is an extremely rewarding profession and can also be a very flexible business for franchise owners.
Pet Businesses
Pet owners all across the world spend billions annually on their beloved animals. Franchises such as grooming salons, mobile dog-washing vans and pet-supply retailers have become popular and profitable businesses. Consumers also pay high prices for pet-sitting services or facilities where their pets can stay while they travel. Pet franchises can be perfect for franchisees who are also animal lovers, and who wish to invest in an industry they are passionate about. A pet franchise also suits those who are seeking a career outside the traditional sphere of employment.
Technology
One of the largest industries on a global scale, technology has become firmly entrenched in people's daily lives. This reliance on technology has led to an influx of IT-related businesses such as mobile apps, smartphone repairs and retail opportunities, all of which lend themselves naturally to franchising. While an interest in engineering of technology may be an advantage, for many technology-related franchises experience is not a prerequisite; the franchise owner will usually oversee the retail aspect and business management of the company, rather than carrying out day to day work such as repairs or product development.
Construction and Home Improvement Services
Manual labour such as construction and home improvement services will always be skills that are in high demand. Closely linked to this are franchises that provide energy-efficient solutions for private homes and businesses. Many companies, both in South Africa and worldwide, have committed to increasing their use of renewable energy sources in light of concerns surrounding global warming, paving the way for further growth within this particular franchising sector.
Finding the right franchise for you is very personal; it is important to identify your strengths, weaknesses, interests and passions. On a practical level it is also necessary to be aware of your economic constraints and geographical limitations. Once you have identified the sector you wish to engage with, investing in a franchise can kick start your entrepreneurial career.
The industries outlined above have not only proven that they are viable and lucrative, they have also become increasingly popular in recent years. Investing in a market that is rapidly growing can be worth considering when you are keen to make a good return on this investment. Do your research and analyse the franchise's financials and business plan, as well as their reputation within the industry. Franchise Direct offers a wide range of franchises, so there's sure to be a franchise available to suit everyone!