Franchising

Franchises present significant growth opportunities for South African economy

The various international retail chain store brands entering the South African market is a positive indicator for the country, and highlights the opportunity that South Africa offers to international investors, despite the flurry of negative perceptions around the current local economy. This is according to Jeremy Lang, Regional General Manager of Business Partners Limited (BUSINESS/PARTNERS), who says that the South African franchise se...
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Interests of franchisee, franchisor sometimes at odds

Buying a franchise is one of those big life choices at least on par with buying a house, choosing a career or relocating to another city. But apart from the fact that prospective franchisees will be putting their life savings and at least a few years of their life into the venture, there is another reason why buyers of franchises must be particularly careful, says Byron Jeacocks, BUSINESS/PARTNERS regional general manager. Although much is alw...
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How economic trends are shaping SA franchising

As franchising continues its steady growth in South Africa, economic trends are shaping the development of the franchise sector in interesting ways, says Gerrie van Biljon, executive director at Business Partners Limited (BUSINESS/PARTNERS). Franchising in South Africa already boasts solid numbers: there are 627 franchise systems totalling 39 000 franchise outlets in the country; they contribute 12.5% to South Africa's GDP, and provide work fo...
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The Pros and Cons of Franchising

Buying a franchise could be a great option for some and the worst option for others. The entrepreneur must be aware of the factors that will influence whether he buys a franchise or not. Much of these depend on the entrepreneur himself, his personality and what his reasons are for wanting to own his own business. “Franchising is about being in your own business, but not alone in your own business.” The advantages Reduced risk - F...
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Franchising – what are your options?

There are thousands of franchised businesses covering a broad range of industries, from well-known national brands to smaller, local opportunities. The challenge is to choose one that excites you and is a good investment. It is critical for you to do as much research about potential franchisors as possible, so can make an informed decision about which franchise you will eventually buy into. Comparing franchises There are some basic...
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The easy way to lose your business – Part 2

Not listening. Entrepreneurs normally have strong personalities with specific viewpoints and stick to what they believe in. That is good, but it is also wise to step back and listen. Listen to what your customer is telling you. This will give you a very good indication of what they want and need, and the problems they encounter. Let us start with what they want. I remember when I was running my own business I wanted to manufacture what...
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The easy way to lose your business – Part 1

The minute you take your eye off the ball you risk your business. Many entrepreneurs work very hard to establish and build a business and after a while they feel confident that they have it all under control. They have built up the expertise necessary to manage the business and it becomes second nature, but eventually they fall into a ‘comfort zone’, which is the start of the demise. I remember a client of mine saying: “I keep the ke...
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Buying an existing franchise

In franchise terminology, the purchase of an existing franchise outlet is referred to as a ‘resale’. When buying a resale, you have to do the same research and assessment you would do if you were buying any business. There are also a few more issues to consider. Why buy a re-sale? There is an up-side to buying an existing franchise. Some advantages are: The buyer has an existing base from which to grow the business Customer...
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Mismatch in franchise industry could be a fatal to business success

Three pillars which prospective franchisees must consider Comprising of 11% of the total South African GDP, the franchising industry has become a well regulated sector in the past few years that cannot be ignored. According to Gerrie van Biljon, Executive Director of Business Partners, the industry growth has encouraged many entrepreneurs to explore the opportunities that the sector has to offer. He says that however, due to the many types of b...
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Wrong fit? In franchising, it can be a fatal mistake

“If you're the kind of guy who likes to go to sleep early, don't buy a restaurant franchise,” says Jeremy Lang, regional general manager of Business Partners. Stating the obvious? Perhaps, but you'll be surprised how many first-time franchisees make the mistake of buying a franchise that simply does not fit their lifestyles, he says. In the world of start-up franchising, it can easily be a fatal mistake to make, because there is so little ro...
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