Franchising has continued to grow in South Africa and is a core part of the country’s business sector. This presents a lot of BUSINESS opportunities for prospective franchisees. Small franchise opportunities in South Africa of any business contributes about 13.3 percent to the country’s GDP making in a business one would definitely want to consider.
A Business tech poll conducted in February of 2018 showed that South Africans are also showing increasing appetite in becoming a franchise owner. For most African countries, the poll attracted 5,644 votes 61% of whom were interested in buying a franchise, while 3% (145 voters) indicated that they already owned at least one.
7 Small franchise opportunities in South Africa
In this article we interact with franchises available for less than R1 million across a variety of sectors.
1. The Fish & Chip Co – from R840,000
Prospective franchisees can get assistance from Taste holdings which prepares finance applications, identifies suitable sites, as well as initial and ongoing training and support. They are obliged to complete a five-day training program that covers day-to-day operations, staffing, stock control, marketing, and management skills.
An experienced team is set aside to support franchisees including a dedicated franchise manager who facilitates communication after finding franchise opportunities in South Africa and operational requirements between the franchisee and Taste.
In addition to an average set up cost of R699,000, you can expect to pay an initial joining and set up fee of R140,000.
2. Debonairs – from R900,500
Debonair latest franchising documentation shows that new franchise owners can expect to pay between R800,000 – R1,400,000.
In addition, franchisees can expect to pay an additional R100,500 as an initial franchise fee.
“Similar to other Famous Brand-owned restaurants, franchisees are also expected to pay 7% of their turnover in management fees and 5% of their turnover in royalties.”
3. Wilcote – from R520,000
Wilcote is a manufacturer, supplier and applicator of professional solutions to all waterproofing, interior and exterior redecoration projects.
As far as franchising is concerned, Wilcote offers:
“Access to a respected Brand name.
Proven know-how and experience.
Extensive initial training and ongoing assistance and support.
A business that is virtually recession-proof.
Territories with outstanding business potential.
A realistic opportunity to earn above-average returns.
[email protected] Business Centre – from R695,000 (ex VAT).
The [email protected] Business Services franchise concept offers a retail opportunity in the business services and communications industry.
Boasting cemented partnerships with DHL International and Kodak International Express photographic provider, its franchisees can offer an ever-broadening selection of services.
[email protected] promotes owner-operated stores starting out with two staff members, while offering a consultative, personalized service.”
Prospective franchisees can choose from two business formats namely; a standalone full store setup measuring 50-80 sqm, an Express Store option occupying 30-45 sqm or a kiosk option occupying 15-25 sqm either in a regional mall, strip mall or stand-alone site.
4. Zebro’s – from R949,000
The total estimated initial cost for a standard Zebro’s outlet of 80-100 sqm is R949,900 inclusive of a franchise joining fee/deposit of R190,000.
Broken down, the total cost goes towards store design, staff training, and launch promotion materials during opening and support from head office from day of opening.
As you go on with the application process Zeros will avail a thorough setup cost projection schedule of your specific location assistance towards analyzing a typical outlet construction. “According to other financial sources, these estimates are based upon our construction experience associated with previous Zebras outlets as well as the industry standard costs of construction.”
5. H20 International – from R325,000 (excluding VAT)
H2O International SA has been operation in South Africa for over 20 years providing water and air purification systems.
H2O says, “A typical day involves motivating and managing your sales team and internal staff, manning your state-of-the-art water bar or water station, servicing existing customers, and ordering stock for more sales and rentals.”
Set up costs range from R325,000–R625,000 (excluding VAT) depending on the type of franchise, location and the quality of the source of the water to be bottled. The total set up cost provides you with a complete turnkey operation.
6. The Bed Shop – from R500,000
This one has an operational planning department which assists franchisees by researching new store locations, designing the store formats and preparing budget and financial projections for each site.
“Once an outlet is open for business, franchisees can call on their dedicated area representative for operational support, should the need arise.”
The Bed Shop engages in a variety of marketing activities, including digital marketing, national promotions and individual store campaigns.
National promotions running over two month-ends typically incorporate national newspaper adverts, digital campaigns, in-store promotions and promotional pamphlets.
7. Sorbet – from R1 million
In the case of Sorbet, a beauty store, the exact amount of the prospective franchise opportunities in South Africa will depend entirely on the size and condition of their selected store and varies from site to site. “50% of this amount should be available in unencumbered cash as a deposit (funding can be obtained for the balance).”
Using their latest franchising costs, you can buy a 60 sqm nail bar for around R1 million, while a Sorbet salon and Candi franchise will cost you slightly more with a total cash requirement of between R1.6 million – R1.7 million. If you’re looking for more information (Read on Best Business to Start in Africa). This will give you full knowledge on the most happening business ideas on the continent. You can also learn ways to make money online in south Africa.