Take a look at the advantages of franchising to help you decide if this is the right type of business for you. We also give you the other side of the coin to give you a balanced perspective.

  • Advantages

    • No need to start from scratch: You have access to an established trademark, a proven operating system, valuable trade contacts and previous research.
    • Quicker break-even point: At least some members of your target market will know the brand and will want to do business with you immediately.
    • Ongoing franchisor support: You’ll enjoy consulting and mentoring services and will be kept abreast of developments in the market.
    • Peer support: You have invaluable access to like-minded individuals who share the same ups and downs and have experience in your sector.
    • Increased buying power: Because the franchisor can usually provide discounted supplies.
    • Good resale value: A franchise is a branded business with a definite resale value. The franchisor may even have a prospective buyer on its database.
       
  • Disadvantages

    • Set-up costs may be higher: Because the franchisor has a corporate image to protect, you won’t be allowed to cut corners when setting up. However, you’re likely to reach break-even point sooner.
    • You’ll need to pay ongoing fees: Although the savings arising from group deals often exceed the franchise fees you pay.
    • You’re tied to other franchisees: Weak franchisors could stifle the brand’s development and with it the development of your business, so evaluate the franchise carefully before investing.
    • You’ll operate in a clearly prescribed framework: Some people resent this limitation of their freedom.
    • The need for a large market: Unless there is potential to rapidly establish 15-20 units, franchising may not make commercial.
  • Call us

    Name Position Email
    Abigail Makhubele Business Development Manager - Emerging Brands abigail.makhubele@absa.co.za
    James Noble Business Development Manager: Fuel jamesjn@absa.co.za
    Thamsanqa Letsoalo Business Development Manager: Automotive Sector  Thamsanqa.Letsoalo@absa.co.za
    Lesego Mpakanyane Business Development Manager: Wholesale & Retail  Lesego.Mpakanyane@absa.co.za

Need more help?

Contact us:

011 350 8000

Email us at:

franchise@absa.co.za