According to the most recent government funded survey on franchising, the FRAIN Franchise Census 2004, the franchise sector turns over R129.2 billion per annum, contributing 10.7% to GDP and employing 259 819 people (an average 10 per outlet). It also reveals that there are 391 franchised systems in South Africa and 22 764 franchise outlets.
When you consider these figures alongside the reality that franchised starts have a mere 8% risk of failure compared to 85% for unfranchised start-ups, it is plain to see why franchises are such attractive propositions for those who want to be in business for themselves but not by themselves.
FBOE 2006 will showcase franchise opportunities across a wide variety of sectors, including: Automotive Products and Services; Building, Office and Home Services; Business to Business Services; Entertainment and Leisure Activities; Fast Food and Restaurants; Financial Institutions; Financial Products and Services; Health and Body Culture; Manufacturing; Pub Concepts; Professional Services; Real Estate Services; Retail and Direct Marketing; and Website Based Services. Other exhibitors include service providers to business, publications and media serving the business markets and providers of professional services.
Of the 22 764 franchise outlets in South Africa, more than 10% (2357) are in the Automotive sector. Among the franchise opportunities that will be offered at FBOE 2006, are those of exhibitors Battery Doctor, Chipsaway Southern Africa and Safe Drive.
Prospects abound in the Building, Office and Home Services sector and a diverse group of exhibitors will demonstrate their offerings at this year's show. They include: Alarm in a Box; Elite Crete Systems Africa; Friendly Robotics SA; Geanie SA Imports and Distribution; Home Comfort; Kleen Bin; Kwikkerb Southern Africa; Rent a Maid; Rion Investment Furniture; and The Coating Worx.
In the Business to Business Services sector, exhibitors Uniglobe Travel SA, The Ink Place, Microsoft and Disk Protek, represent both franchisors and suppliers to the franchise industry.
Fast Food and Restaurants is without a doubt one of the best represented sectors at FBOE 2006; a fact that is not surprising since, according to the FRAIN census, fast food franchises account for 15% of all franchises and restaurants for 14%. That is to say that 29% of all franchises fall within this sector. Exhibitors in this sector include: Black Steer; Fishaways; Mini Melts; Mochachos Franchise Management; Something Fishy; Spit-Braai King; and Subway Sandwich and Salad Franchises. The Pub Concepts banner will in turn be flown by exhibitor Brazen Head Holdings, franchisor of the Brazen Head Irish restaurant and pub establishments.
In the Financial Institutions sector Bondmaster, Khula Enterprise Finance, Nedbank, and Old Mutual will showcase their offerings for the franchise industry, while Applogix, Business Partners Limited and Cash Axcess will present opportunities in the Financial Products and Services sector. Nedbank will also be offering visitors a chance to 'enhance their business opportunities' with a competition in which the winner nets a R10 000 Incredible Connection voucher. The competition can be entered at Nedbank's stand at FBOE.
In an increasingly health conscious country like ours, the Health and Body Culture sector is certainly one in which we can expect to see substantial growth in the next few years. This year, exhibitors include: Physical Health Dynamics (PHD); IFA Business Opportunity; and Willa Krause Promotions.
For individuals keen on a franchising opportunity in the Manufacturing sector, Safrique International and Zhauns / Haier SA will be displaying their offerings at FBOE.
The dynamic Real Estate industry offers a wide range of opportunities for people with a passion for property. Representing this sector are: Realty 1 International; ERA South Africa; AIDA National Franchise; KIH Group; Rawson Residential Franchises; and Real Estate Inspectors.
In the 2004 FRAIN Franchise Census, retail was credited with 15% of franchised systems and 4596, or just more than 20%, of all franchise outlets. Moreover, it was anticipated that the sector would soon overtake Fast Food as the leading franchise sector. Certainly the Retail and Direct Marketing sector will be especially well represented at FBOE 2006, where exhibitors include: Cartridge World; Cash Crusaders; Cell C Connect; Freecom Group; Mikes Sports; OBC Chicken; PK Vending; Food for Life; PR Vending; and Vendtec.
In the Website Based Services sector are exhibitors Coretechno; Internet Hot Spot; and SA Findit.
Besides companies offering franchises, various service providers will also exhibit this year, and include the City of Joburg; IDC; ITEL Solutions; and SEDA; and W&R Seta under the professional services banner.
FBOE 2006 is more than just an expo, the show also features the Succeed Speakers Corner, an initiative sponsored by Succeed magazine and Nedbank, which features a series of informative and educational talks for the budding entrepreneur, every hour on the hour from 11:00 to 16:00 daily. Sibongiseni Ngundze, deputy director Nedbank Small Business Services, will deliver a presentation entitled "Nedbank partnering small business" at 13:00 on the 7th and 8th of September. The same presentation will be presented by Derek Lockwood of Nedbank, on the 9th and 10th.
Other topics and speakers include: Bill Gibson, Vuyo Jack on BEE in Franchising; Kobus Neethling on Creativity; Niel Malan on Boosting Sales and Profits Through Marketing and Systems Leverage; Alon Raiz on What They Don't Tell You About Being An Entrepreneur; Eric Parker on The Importance of IT in Franchising; and a speaker from Incorporex on The Importance of Registering the Right Kind of Company.
According to respected franchise guru and CEO of business consulting firm Franchise World, Lofty Lutge, one of the key trends in franchising is that retail is indeed overtaking fast food as the category with the most systems; a reality that is helped in no small part by the fact that the petroleum franchises now all have convenience stores offering colddrinks, sweets, bread and milk, in opposition to traditional convenience stores, but with the added benefit of 24-hour service.
Lutge says other trends to watch out for are the opening of shopping centres in areas like Soweto, Alexandra and Davetyon, among other places, for the first time. As a result of this, some of the bigger franchise brands, particularly restaurants, are now opening in these township areas.
If you're in the market for a low-risk business opportunity costing anywhere from R20 000 to R500 000 and more, chances are you'll find it at the Franchise and Business Opportunities Expo. The show takes place at Gallagher Estate in Midrand, from 7 to 10 September 2006, 10:00 to 18:00 daily, except Sunday when it closes at 17:00. Entry costs just R30 per person.
The Franchise and Business Opportunities Expo forms part of Joburg Business Week, a collaboration of events designed to bring Big Opportunities to Small Business!
Joburg Business Week encompasses the Eskom Small Business Development Expo, the Franchise and Business Opportunities Expo and a comprehensive business skills workshop that will provide direct skills training and opportunities.
Joburg Business Week supports the ASGISA programme and its goals of generating economic growth, creating jobs and alleviating poverty.
For more information visit the website at www.fboe.co.za
or contact Thebe Exhibitions on 011 549-8300.