A new life beckons for Buffalo City Metro entrepreneurs prepared to put in extra hours, hard-earned cash, and show the financial discipline and maturity needed to operate a profitable franchise.
Today the doors open for the third annual Buffalo City Metro Franchise Expo, with 60 franchise opportunities and workshops available for the next three days.
The eagerly anticipated event is on at the East London ICC from 10am to 5pm today and tomorrow and closes at 4pm on Sunday. Entry is free.
In these uncertain economic times, franchises represent one of the safest ways to get into your own business as your hand is practically held by the franchise owners (franchisors) who guide you (the franchisee) through start-up.
There are some tough issues which franchisees must face before finding the right franchise fit, and then battling it out through 60-hour weeks in the start-up phase, but the Franchise Association of SA (Fasa) said there were excellent reasons to give it a go.
Fasa’s annual survey has shown that there are 750 franchised brands active in SA, while 35000 franchisees and 330000 people have found jobs in the franchise sector.
“Last year, (franchise) sales passed the R490-billion mark, taking franchising’s share of South Africa’s gross domestic product to a credible 12%,” Fasa said.
“These figures do not include motorcar and petrol distribution, both operating through dealerships.
“The survey also reveals that the franchise sector’s growth continues to outstrip that of the overall economy.
“This finding is important because it indicates tremendous potential for the future.
“ It follows that there has never been a better time to become involved.
Unfortunately, many people continue to equate franchising with fast food establishments but this is an outdated notion.
“It started out this way but today Fasa’s manual lists opportunities in 12 different sectors and new concepts emerge from time to time,” Fasa said.
Modern-day franchising originated in the US during the 1950s and quickly went global, taking off in SA in the 60s.
Fasa said that once people think they have found a franchise they can be passionate about, then starts the negotiations and a lot of education about their new senior partner.
These include pre-evaluation processes, upfront fees, start-up support systems and long-term procedures, and the signing of comprehensive disclosure documents.
If negotiations succeed after a cooling-off period, the two parties sign a franchise agreement.
People must expect to have to work under the network’s brand using the business systems developed and owned by the franchisor.
However, access to the brand’s bulk marketing and purchasing arrangements and ongoing assistance are standard. To maintain the integrity of the brand, the franchisor will exercise a reasonable amount of ongoing control.
For those without capital, reputable brands enjoy substantial advantages when it comes to banks.
There are also government-sponsored funding schemes available to those who qualify and scheme officials will be at the expo. — mikel@dispatch.co.za
Expo for start-up businesses
Today the doors open for the third annual Buffalo City Metro Franchise Expo, with 60 franchise opportunities and workshops available for the next three days.
The eagerly anticipated event is on at the East London ICC from 10am to 5pm today and tomorrow and closes at 4pm on Sunday. Entry is free.
In these uncertain economic times, franchises represent one of the safest ways to get into your own business as your hand is practically held by the franchise owners (franchisors) who guide you (the franchisee) through start-up.
There are some tough issues which franchisees must face before finding the right franchise fit, and then battling it out through 60-hour weeks in the start-up phase, but the Franchise Association of SA (Fasa) said there were excellent reasons to give it a go.
Fasa’s annual survey has shown that there are 750 franchised brands active in SA, while 35000 franchisees and 330000 people have found jobs in the franchise sector.
“Last year, (franchise) sales passed the R490-billion mark, taking franchising’s share of South Africa’s gross domestic product to a credible 12%,” Fasa said.
“These figures do not include motorcar and petrol distribution, both operating through dealerships.
“The survey also reveals that the franchise sector’s growth continues to outstrip that of the overall economy.
“This finding is important because it indicates tremendous potential for the future.
“ It follows that there has never been a better time to become involved.
Unfortunately, many people continue to equate franchising with fast food establishments but this is an outdated notion.
“It started out this way but today Fasa’s manual lists opportunities in 12 different sectors and new concepts emerge from time to time,” Fasa said.
Modern-day franchising originated in the US during the 1950s and quickly went global, taking off in SA in the 60s.
Fasa said that once people think they have found a franchise they can be passionate about, then starts the negotiations and a lot of education about their new senior partner.
These include pre-evaluation processes, upfront fees, start-up support systems and long-term procedures, and the signing of comprehensive disclosure documents.
If negotiations succeed after a cooling-off period, the two parties sign a franchise agreement.
People must expect to have to work under the network’s brand using the business systems developed and owned by the franchisor.
However, access to the brand’s bulk marketing and purchasing arrangements and ongoing assistance are standard. To maintain the integrity of the brand, the franchisor will exercise a reasonable amount of ongoing control.
For those without capital, reputable brands enjoy substantial advantages when it comes to banks.
There are also government-sponsored funding schemes available to those who qualify and scheme officials will be at the expo. — mikel@dispatch.co.za
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