I’m going to franchise…the infamous words of every startup.
The illusion every business success is determined by the ability to franchise is a repeat of a business owner’s failure to build a brand before the benefits of an annuity billing for a royalty fee. Building a franchise in South Africa has typically seen success from the brands built from scratch. With around 90% of South African franchised brands being local, the franchise industry has shown that South Africans prefer local over the dominance of international brands in other countries. Potentially a motivation for many restauranteurs, fashion designers, and retailers to build their start-up to the next Starbucks, Zara, or department store. But as with every one of those brands, a backstory is closely carted with history, purpose, and a foundation that enriches the due diligence for a logical expansion plan.




Not every business requires a century of tales and memories to become a franchise but every brand requires the durability to withstand the demands of what it takes to become a brand. Consider your concept before contacting that marketing and social media marketing agency, test the durability of your concept, the operational system, the ability to expand, service, and innovate. No investor or franchisor wants to invest in a one-hit-wonder, franchising should be seen as the opportunity to develop a legacy and brand milestone rather than the opportunity to make money off a franchisee’s hard-earned investment. Franchisees invest in the opportunity to expand and that secret formula that his/her neighbour finds difficult to replicate…do you have a secret herbs and spices?!



Understanding the demands of your ‘new’ business model requires that you divorce yourself from not sharing what was once only yours to sharing the success and formula you want everyone to experience and prepare for change! Your business of making and selling is now about creating, selling, marketing, training, development, and managing people. You no longer only require a broader group to report on your brand targets but will now also have the responsibility of reporting to your stakeholders, after all, what is good to grow your business must be justified when you demand your next royalty and marketing fee!

With a bona fide product or service model and the principle of discipline and commitment, why shouldn’t your ‘grande’ franchising venture become the next Starbucks success? With South African SME startups presenting less than 20% success rate within 5 years and only 4% within 10 years, the franchising model presents a greater chance of success for the aspiring business owner than a new startup. Considering the franchising sector is still growing and shows no signs of any slowdown, your 101 to starting your franchise begins with your commitment to share your success, build your brand strategy and package an ‘out of the box’ investment for your first investor.



It seems safe to say that getting involved in the franchising sector makes economic sense and offers your business success expansive opportunity with less risk and greater reward on a model which you’ve tried and tested.