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Operating a franchise in South Africa

When most people think about a franchise , they tend to think in the line of a fast food restaurant or about a real estate broker. When thinking about it, almost any business can be a franchise. This opens completely new possibilities for SMME's.


A franchise offers a lot more security than a normal standalone small business. When buying a one, you have immediate brand recognition and a trademark to do your business under. It also comes with the advantage that you are still your own boss.

According to a recent survey, there was found that the success rate of a franchise is notably higher than the rates of standalone small businesses. The main reason for this is because the customers know about the products and services it offers and trust that they will receive the same service at all the different franchises.

Just like with any business venture, it is very important to still do research. You will not only have to do market research, but also research about which one you are looking to buy. With the market research, you should establish if there is a need in your surroundings for the specific product or service. Even though the product or service might be well known, there might not be a desperate need in your location for that product or service at the moment. Then when you do research on the franchise, you should establish if it will be the best choice you can make. 

Just like any other business form, it has its advantages and disadvantages. There are far more advantages than disadvantages when it comes to a franchise. Not all the disadvantages are seen as a proper disadvantage because it motivates you to work harder to achieve high standards. Mentioned below are some of the advantages and disadvantages of a franchise.


  • You get to market and sell a well-established product or service.
  • You do not need a large amount of operating capital.
  • There are franchising quality control standards you have to meet which will ensure that your products and services are up to standard.
  • You will get management and technical assistance from the franchisor.
  • You will have a higher chance of success.
  • You will be able to learn the franchisor’s ways of doing business and will learn the trade secrets of the specific business.



  • The franchise agreement is usually expensive.
  • Restriction of freedom to give to your entrepreneurial instinct a chance.
  • Possible competition from other franchises.


You do not always have to buy a one. Why don’t you just start your own one? If you have a successful business and feel that you will be able to attain the same level of success in other parts of the country, then you have the ideal opportunity. You should put it out there that you are looking to branch out your business in the form of a franchise. When other people are looking for business ideas and have confidence in your idea, they just might buy into your idea.

The possibilities of a franchise are endless. If you are the franchisee of the franchise, there is no doubt that you can be successful. With the right amount of knowledge in your hands, there is nothing you cannot do.



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