Cash Converters explains the perfect franchising fit

This is the view of Jean-Pierre Seger, Cash Converters' Franchise Sales Manager southern Africa. "I want to sell a franchise to someone who is going to be so successful that I'd be able to sell him a second store two years later, where he can duplicate his success," he continued.

However, Seger is quick to acknowledge that the franchisor/franchisee relationship has to be mutually beneficial and the fit goes both ways. "The greatest tool a franchisor can offer to assist a franchisee is to provide a strong business model that delivers significant returns and a viable product that the community will welcome."

A key function of Seger's role as Franchise Sales Manager is to match potential franchisees with the franchise, and this means getting to know and understand the individuals, what motivates them, their business acumen, their access to finance, and their willingness to work within the model guidelines. Of course, it's never an exact science - Seger said that he has met candidate franchisees who seemed like a good fit and were ready to take the leap into franchising, only to decline just 24 hours before signing. "Our lead-generation strategy and sales pipeline needs constant attention to offset such setbacks," he said.

Ample experience

Seger has ample experience in sales planning and operational management, having worked in the financial services industry with a focus on new business development, channel partnerships and project management. He is also currently doing an MBA, specialising in entrepreneurship, a journey that he says has helped him gain vast knowledge on how to build a business.

"When it comes to leaving full-time employment to take up franchising, people are motivated by different things; however the majority of people want to be able to spend more time with their families," he explained. "Many want better returns and they're looking for a viable business model that will be sustainable and continue to give returns into the future."

Another key draw card for potential franchisees is the opportunity to learn more about retail and the training that should come with opening a new franchise. "This is one of the most frequently asked questions I experience," said Seger. "It is evident that good candidate franchisees appreciate the industry and the regulatory frameworks provided by franchising. A good franchisor provides its franchisees with unlimited support. A training programme prior to opening an outlet, as well as additional full time in-store training keeping candidates encouraged and motivated.

The franchise sector in South Africa continues to grow and thrive despite testing economic conditions. With 600 franchises in the country and about 32,000 individual franchisees, the sector employs approximately 300,000 people across South Africa. "This is testament to franchising being a stable environment to invest in," concluded Seger.