Rocomamas is a successful franchise from Spur Corporation Photo: File
DURBAN - Opening a franchise can be tough especially if you are doing it for the first time.

There are key points to keep in mind when starting a franchise and ensuring the success of your franchise.


Ensure that you have enough money. Estimate how much money you have to invest, how much you are willing to risk and how you will need to live on for the next months.

Make careful and rational decisions when buying a franchise. Listen to the people that give you advice like your lawyer or accountant and do not feel pressured but the franchise salesperson.

The prices for franchises differ. According to Business Tech "franchising costs range from R500,000 for a brand like Chesa Nyama, to as much as R6 million for a global giant like McDonald’s".

The 2018 Franchise Business Festival is focusing on this aspect as there are reputable authentic franchises available from R30 000 to R30 million.


Having a prime location for your franchise has many benefits. This ensures visibility for your restaurant to draw in customers. Irene Dickey from the University of Dayton's School of Business the three most important decisions that you will make is location, location and location.

According to The Franchise Association of South Africa (FASA) Executive Director, Vera Valasis , the location of your franchise should be based on the target market. If your target market is impulse based/impulse decision driven then establishing the franchise is even more important.

There are many companies that specialise in helping companies establish outlets in the right location.

The type of product and/ or service will also determine the location as franchises that offer certain types of products and services are more successful in perhaps high street locations like shopping centres.

Business Plan

A business plan can help give some structure to your franchise and is important if your borrowing money from the bank. FASA said that lenders are looking for specific information not only in regard to the financial projections of the business but specifically the owner of the business, the suitability of the owner of and the brand that they are investing in, the owner's support system, health and various other so-called soft issues in addition to the usual information in respect of marketing strategy and SWOT analysis etc.

Business Partners offers a very extensive guide to developing a well balanced business plan.

Strong brand

For a franchise to achieve success, having a strong brand is crucial. The best asset a franchise can have is a well-established brand. With it comes a built-in customer base that already knows your product or service. With a well-established franchise comes brand recognition and customers that are loyal who will support your franchise.

FASA said that leading brands enjoy a wide customer base which is built up over many years. The brand value is usually immense and with it comes a certain prestige that funders, landlords and the market buy into which is good business.