It would appear then – according to these figures from The Standard Bank Franchise FactorR, conducted by Franchize Directions, copyright Bendeta Gordon, October 2006 – that franchising is indeed fast gaining popularity and playing an increasingly important role in the country's economy.
More interesting data revealed by the report, for 2006, is that the sector employs a total number of 412,428 people; BEE parties now comprise 32% of all franchisees; and the highest growth in the number of outlets per franchised system, in the period March 2004 to February 2006, was in the categories entertainment and leisure (25 outlets), personal services (28 outlets), real estate services (27 outlets) and telecommunications (52 outlets).
So, why are more and more entrepreneurs electing to rather buy into established business concepts, than to go it alone?
Brenda Macqueen, director of Franchize Directions and past president of the Franchise Association of South Africa (FASA) explains: "Franchising works for a great many, very good reasons. The most important of these is that it enables the entrepreneur to buy into a strong brand and proven business model that is usually underpinned by excellent training programmes; proven business, communication, POS, accounting and HR systems; strong marketing; and all round support from the franchisor. In a nutshell, it cuts the risk and increases the rewards of owning your own business, while allowing you, in the words of the International Franchise Association 'Be in business for yourself, not by yourself.'"
FBOE 2007 will feature exhibitors from the following categories: franchisors and franchisees; business opportunities; business development organisations; financial institutions; organisations proving support services to small and medium business owners; companies supplying technology, office equipment and business services; business agents and distributors; and direct selling companies.
The franchise opportunities on show this year, in particular, will virtually run the scope of the available options and include everything from real estate agencies to family clinics, fast food outlets, maid services, financial services, business broking, renovations, and more. Faced with so many options, the prospective franchisee should quite literally be spoilt for choice.
Macqueen offers this advice to the would-be franchisee, on selecting the right franchise: "It is important that you choose an industry that is compatible with you and a price that is affordable to you. Equally important is the principle of starting small and keeping it simple. Also remember to get legal advice and to discuss the venture with your spouse and friends – other people, especially those who know you, can offer valuable alternate views, which you may be too involved with the detail to see."
Wendy Graham, project manager of the Franchise and Business Opportunities Expo at Thebe Exhibitions & Events Group, comments: "It is a commonly held misconception that franchises cost hundreds of thousands of rands and more. And while it is true that some require a relatively large investment, there are at least as many opportunities available for people with less money to spend. In fact, some franchise and business opportunities start from as little as R30,000."
Graham adds: "Exploring the available business opportunities in an expo environment, like that of the Franchise and Business Opportunities Expo offers you, the potential franchisee, a rare opportunity to meet franchisors face to face from the outset, and to thoroughly research each and every viable opportunity in a single occasion."
For more information, go to www.fboe.co.za.
