The franchising industry has opportunities for entrepreneurs looking to take advantage of the popularity of fast foods and services like beauty and wellness, education and child care.

While franchising has a lot of advantages, including being a tried and tested system and business model, there are some obstacles for entrepreneurs looking to enter the sector. The first big barrier that potential franchise owners will face is the high cost. Especially if you have their eye on more well-established and popular brands. To access the financing they need, business owners can approach a bank for a loan. Many of the major banks in the country have a franchise division with a focus on franchise financing. A prospective franchisee needs between 40 and 50% “of the total franchise investment in cash or similar unencumbered funds”. The bank will finance the balance if the application is approved.

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Where do you start if you want to be a franchisee? 

If you are looking to take advantage of the opportunities this presents you have to do your research. What are the estimated costs to run a shop? How many people will you have to employ? Riaan Fouche, the Chief Operations Officer of Franchising at FNB Business, suggests that if you’re thinking about going into franchising, you should think about what your likes and dislikes are. The most popular franchise industries are, firstly the retail market, secondly the fuel and oil, and thirdly the restaurant and fast food industries. There is great potential in the health and beauty industry, as well as the communications industry. Other sectors to consider include the automotive, education, eye care, building and building supplies.

Are you looking for Purchase Order Funding? 

Complete a simple form to compare multiple small business loan options.

Franchise Business Opportunities   

Over the past several years South African franchises have grown in a wide variety of sectors, due to technology advancements and the attitude that entrepreneurs have. The growth of franchising options in South Africa doesn’t only increase business opportunities but also increases the opportunities for entrepreneurs to align franchises with their interests.

Here is a list of 100% South African franchises that aspiring entrepreneurs can look into. 

Many brands have embraced the franchise model strategy, and many have tried and failed. To find out the secrets of those who have succeeded, we turn to the founders of some of the country’s most successful franchise brands.

Here are some of our favourite quotes from franchising leaders. What to buy? New vs established franchise opportunities? Finding out whether it is better to buy into a new franchise concept or opt for the well-established, one is like the chicken and egg scenario. 

Advancing Tech Use Among SMEs   

To remain competitive in the short and long term, small businesses should be using the very best technology tools available at their disposal.

Download the SME South Africa Technology White Paper to learn:

• The reasons South African business owners are not making use of technology at the levels they should.

• The tech benefits that small business owners are missing out on such as access to new markets, reduction in business costs, and improved efficiency and competitiveness.

• How technology brands should be talking to small business owners and the role of entrepreneurship ecosystem stakeholders in increasing technology use.