Radio Interview with Sasha-Lee de Bod on Radio 786 Business Inside:
Franchising offers people the freedom to own, manage and direct their own business with the ongoing support and strategic direction from a franchisor.
Franchising offers people the opportunity to be in business for themselves, but not by themselves
What is a franchisor and franchisee?
- A person who has developed a proven business formula and brand that wants to grow further by granting franchisees the right to operate a franchise store
- Seen as the strategic role-player
- A person that seeks a business opportunity that provides initial and ongoing support
- Seen as the operational role-player
Why franchise a business?
There are many reasons why companies look at franchising their business:
- You don’t have sufficient capital to grow the network, franchising allows you to leverage off third party capital. This is a strategy for dynamic growth
- Broaden distribution network and brand presence with little or no additional capital from the franchisor
- Allows for economic expansion through motivated owner operators with skin in the game – an owner operator will increase sales by at least 20-30%
- Control of distribution channel through franchising’s strict procedural standards
- Allows for expansion into outlying areas that are not feasible for corporate outlets due to inability to manage and monitor remote site
- Franchising is an ideal empowerment or BEE tool
- Easier to manage – you don’t have to worry about 100 stores’ petty cash and customers, etc the franchisee takes care of the operational side of things
The role of franchise consultants and how vital they are when looking to franchise a business
If you think consultants are expensive, try failing – business failure is so expensive if you try things on your own with no experience. Entrepreneurs have the experience to run their business successfully, but they don’t always know how to franchise a business in the right and correct way.
How to buy a franchise
There are 14 key steps in opening a franchise to assist you through the process and to put your mind at ease
How do you decide which business to be a franchisee of? How do you go about it?
- It needs to be something you love, or you are passionate about (remember you will be running the outlet on a full-time basis)
- Be realistic about your technical skills
- Do you have sufficient capital to offer the category
- Will the franchise give you a satisfactory ROI and allow you to draw the salary that you want?
- Research the concept and do a thorough due diligence
Franchising Plus, South Africa’s most respected franchise consultancy, offers unbiased advice and professional servicesof the highest standard to existing businesses and prospective franchise companies in expanding their operations by means of franchising, licensing and other suitable business distribution mechanisms. We also provide business development and strategy support to new and aspiring entrepreneurs.
Franchising Plus are the thought leaders in franchise development in South Africa. We are equipped to handle every aspect of the franchising process. We have gained valuable hands-on experience in various industries and understand the needs of clients. We are an innovative franchise consultancy who are continuously developing new approaches to franchising.
For more information on franchising and how we can assist you, contact us.