Which Is the Cheapest Franchise to Buy in South Africa
What is a franchise?
A franchise is a business in which an established business owner, known as the ‘franchisor’, sells the rights to use their company name, trademarks and business model to independent operators, called ‘franchisees’.
How does franchise work?
A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a specific number of years and assistance.
What are the types of franchise?
There are three main types of franchise arrangements:
1. Business format franchise
2. Product franchise
3. Manufacturing franchise
Which is the cheapest franchise to buy in South Africa?
King Pie franchise is the cheapest franchise to buy which will cost you approximately R120, 000 to R600, 000, depending on the size of the shop and its location.
What are the advantages of franchise?
Free training on franchise management is often provided by franchisors
Enjoy independence of small business ownership while working with a tried and proven business idea.
1. A ready-made business model to follow
2. Market-tested products and services
3. Established brand recognition
What are the drawbacks to franchises?
1. Franchises can be costly
2. Earn low amount of profit in the long term
3. Constraints on the sale of your business.
4. Franchisees lack control over territory or creativity with their business.
How does the franchise owner make money?
A franchise owner makes money through profits received from sales and service transactions.
What is the most profitable franchise to own in South Africa?
According to a report issued by Business Tech, McDonald’s is the most profitable franchise that makes the most income per outlet.
How do I invest in a franchise in South Africa?
1. Carry out thorough research to understand exactly how your preferred franchise operates.
2. Contact the franchisor to understand franchising opportunities and the steps are involved in opening a new franchise.
3. Secure business loan or raise adequate capital.
4. Follow the strict requirements of opening and operating the business according to the franchisor.
