Real Estate Franchising vs Own Business – Know the Risks

The current market conditions makes a case for buying a real estate franchise vs running your own property business. Here’s why. The South African economy, like many others, was deeply affected by the 2008 financial crisis. Various subsequent domestic challenges, including the devastating effects of COVID-19, and ongoing political upheaval and socioeconomic unrest, have resulted […]

Marcel’s Frozen Yoghurt: Serving up success for 30 years

  The first Marcel’s Frozen Yoghurt store opened in Stellenbosch in 1989, serving up a healthier alternative to the frozen desserts available at the time using an engaging over-the-counter service format. Source: Supplied The stiff competition and sheer variety that exists among food service providers in SA’s metropolitan cities today was not the case then, […]

Ocean Basket uses unique roadhouse-style dining option, saving jobs in the process

South Africa has entered the second week of its latest two-week level 4 lockdown, with restaurants – among others – bearing the brunt as sit-down dining has been disallowed. In an attempt to minimise the blow, some of seafood franchise restaurant Ocean Basket’s branches have launched a roadhouse-style dining experience.

Balancing the scales in franchising

Among the many industry sectors in South Africa, whether agriculture, mining or manufacturing, franchising is the only one that covers a whole spectrum of business sectors (around 14) and contributes almost 14% to the country’s GDP – far above all other sectors whose contributions are in the single digits – but sadly, as an industry sector, it often does not get enough credit for its contribution.

Spur launches its first drive-thru restaurant in South Africa

The Spur Corporation has launched its first drive-thru restaurant as it aims to offer broader appeal and convenience to customers.
The drive-thru, situated in Karenspark in Pretoria, will offer meals that are traditionally sold at its restaurants including burgers, chicken wings, ribs and onion rings, the group said.

Sale of Burger King South Africa blocked over lack of black ownership

The Competition Commission has prohibited a proposed takeover of Burger King in South Africa by an international private equity fund.
Last year, the struggling Grand Parade Investments announced that it would sell Burger King South Africa and Grand Foods Meat Plant, which primarily supplies Burger King with patties, to a fund owned by Emerging Capital Partners (ECP). ECP, which was founded in the US, is a private equity firm that focuses on African investments.

DIY and home services supporting franchise industry recovery

  The news that listed group Italtile expects its full-year earnings to surge by 70%, boosted by a high demand for its products and an 18.5% increase in total retail store sales, is an impressive growth story in the midst of a pandemic. Italtile, as a manufacturer, franchisor (for brands Italtile Retail, CTM, TopT and […]

2021 will see Galito’s total number of outlets in Kenya increase to 20

2021 will see Galito’s total number of outlets in Kenya increase to 20, growing the brand’s visibility and accessibility on the continent while many in the industry flounder given the current tough global economy. So, what is creating African growth for Galito’s? Galito’s founder and CEO Louis Germishuys believes the success of its expansion into […]

Spur group to expand takeaway format following revenue slump

The Covid-19 pandemic has decimated Spur Corporation’s revenue, resulting in a 40.2% decline to R314.2m for the six months ended December 2020. However, the company is seeing strong growth in takeaways and will be expanding on this trading format going forward.

Franchise sector prepared to help rebuild economy, says new FASA chair

Pertunia Sibanyoni, CEO of InspectaCar, has been appointed as the new chair of Franchise Association of South Africa (FASA) for 2021/2022. She boasts seventeen years’ experience in franchising, twelve of them spent in the oil and energy sectors and the current four in automotive and financial services.

Business success – the franchise way

Everyone dreams of owning their own business, writing their own salary cheque and being successful. But in reality, only a small proportion of people realise that dream as the barriers to setting up a business are often quite daunting, the costs often prohibitive and the expertise needed to make the business work often lacking.

Are you the Master Franchisor for Nutty Scientists in South Africa?

Nutty Scientists is a Global Leader in the development of STEAM programs (Science, Technology, Engineering, Art & Math) for children of all ages. Our hands-on programs pique the interest and curiosity of children (and adults!) at schools, camps, parties, festivals, and special events all over the world!

The evolution of franchises post Covid-19

Nearly eleven months after South Africa’s lockdown was first declared, there remains a great deal of uncertainty about the effect that the coronavirus pandemic will continue to have on our society and economy in 2021.

Food Lover’s Market create social enterprise opportunities

Food Lover’s Market has launched its Seeds Of Change Supplier Development Partnership to create opportunities for social enterprises to join the fresh produce retailer’s network as a supplier. They are looking for businesses that are ideally socially and environmentally focused, are passionate about retail and motivated to deliver the best quality product or service.

ActionCOACH Promotional Offer

We’ve reflected on what happened over the past year and have seen first-hand the challenges and even devastation business owners have faced. We had to find a way to be part of the solution, as coaching is now needed more than ever before.

Retail franchise PNA expands store footprint

PNA, the specialist retailer of stationery, art and craft materials, educational books and related items, is growing its footprint with two new store openings in Gauteng. PNA at East Rand Retail Park opened its doors on 16 October while the Hyde Park Corner store opened on 22 October.

How Spur is using delivery services to fight back

Six months in, a big bet on ‘virtual’ kitchens looks very promising …. The Covid-19 lockdowns have led to innovative responses from the likes of Spur Corporation. Regular users of food delivery platforms such as Uber Eats or Mr D Food may be ordering from their neighbourhood Spur or Panarottis without even realising it.

Big franchise brands not better off during the pandemic

The weaknesses inherent in franchised businesses and the health of relationships between franchisor and franchisees are being revealed as the Covid-19 pandemic unfolds. Excessive reliance on retail infrastructure, insufficient investment in digitisation and poor delivery capability is severely impacting franchised networks.

Spur expects Covid-19 effects to linger longer

The restaurant group’s annual profits are down over 21% due to lockdown restrictions. Spur, the owner of RocoMamas, John Dory’s Fish Grill Sushi and Nikos Coalgrill Greek, expects the economic devastation of Covid-19 and the subsequent lockdown to linger over the medium term.

Eight new Starbucks coffee shops to open in SA by 2021

Rand Capital Coffee is forging ahead with its expansion strategy, announcing that eight new Starbucks stores will be opening in South Africa within four weeks – from mid-November to mid-December – with six of them planned for Cape Town.

Prepare for the franchise resurgence

When it comes to picking up the pieces from the devastation that has been 2020 and the coronavirus, the franchise sector is leading the way in its recovery.

GaliPods ignite entrepreneurship in rural and peri-urban areas

“Primarily located in rural and peri-urban areas, GaliPods bring a well-known brand into these communities who are delighted to be able to access this food service so close to home, but they work well just about anywhere provided there are enough people in the area,” Galito’s group marketing executive Caitlin Winson.

Del Forno back on track

We are officially back on track and grateful that the lockdown restrictions are easing and we can return to some normalcy. We are happy to confirm that all our stores are open for to the public for sit-down, take-away and delivery.

The importance of agility for a franchisee in the times of Covid-19

We know that our economy is challenging, and that the world is changing rapidly. The novel coronavirus has brought more challenges for our economies, in South Africa and around the world. The ability to “quickly reconfigure strategy, structure, processes, people, and technology toward value-creating and value-protecting opportunities” – McKinsey’s useful definition of agility

South Africa’s franchising businesses are adapting to life during Covid-19

Franchising has at its heart the spirit of entrepreneurship but amidst the Covid-19 pandemic that has resulted in immeasurable destruction of small businesses, the question remains whether the entrepreneurial flame can be re-ignited for future growth, says the Franchise Association of South Africa (FASA).

Franchising – Adjusting to the new normal

With seemingly no end to the ravages of the corona virus, franchising and businesses across the globe are fighting for their survival and are shifting operations to accommodate an unknown landscape. 

Farewell and thank you to Vera Valasis FASA’s executive director

After fifteen years at the helm of the Franchise Association of South Africa as Executive Director, Vera Valasis has resigned from FASA and is moving on to new challenges. She holds the distinction of being the first woman to hold the position in FASA’s 41-year existence.

Goodbye to Kurt Illetschko – Franchising’s staunchest ally

The franchising community is mourning the passing of Kurt Illetschko, who dedicated his life to the promotion of franchising and was a founder member of the Franchise Association of South Africa. Our condolences go to his family from all at FASA and from all who knew him.

Franchise sector to get code of conduct and ombud

A recent exposé on an investigative television programme put the spotlight on the compliance of franchise companies with the Consumer Protection Act’s Regulations and with the Code of Ethics as set down by the Franchise Association of South Africa (FASA).

Franchise compliance lacking despite CPA protection

A recent exposé on an investigative television programme put the spotlight on the compliance of franchise companies with the Consumer Protection Act’s Regulations and with the Code of Ethics as set down by the Franchise Association of South Africa (FASA).

Del Forno – Handling the Covid-19 pandemic positively

During recent months, it will come as no surprise that people have been impacted by the Coronavirus pandemic globally. This is also true for the restaurant industry, and we would like to use this opportunity to offer feedback on our journey during the Covid-19 pandemic and the National Lockdown since we have reopened.

Sorbet appeals to open under strict hygiene conditions

The Grooming Sector (nail, hair, beauty & health services) which has a high proportion of female owners who are often the sole breadwinners of their families and support many dependants is suffering immense losses during this lockdown.

Franchise business owners feel lockdown pinch

From negotiating rental relief with landlords and royalty fees with franchisers to asking for relaxed loan repayments with banks, franchise operators are battling to survive the Covid-19 lockdown as trade continues to be restricted.

Del Forno – PIZZA | PASTA | GRILL – A passion for good food

At Del Forno, we pride ourselves of quality of our service and the ingredients we use to give you the best tasting Italian cuisine. Our recipe for success is A PASSION FOR GOOD FOOD enabling us to provide our patrons with the best meals and the best service!

SA sales have met expectations, Famous Brands says

Famous Brands, the owner of Steers, Wimpy and Debonairs Pizza, said on Thursday sales growth for its year to end-February met expectations even as it battled with load-shedding and SA’s deteriorating economy.

Ocean Basket’s new smaller stores drive ROI

There’s a buzzing new Ocean Basket at Haasendal Gables, Cape Town, where you’ll find the ever-friendly seafood people, a home-from-home feeling and great value for your hard-earned bucks; but there’s something more important taking place here.

Burger King South Africa franchise to be sold

Grand Parade Investments (GPI) says it will sell all of the shares it holds in Burger King South Africa – being 95.36% – to ECP Africa Fund as part of its restructuring process.

1. Are you the Master Franchisor for Nutty Scientists in South Africa?

Nutty Scientists is a Global Leader in the development of STEAM programs (Science, Technology, Engineering, Art & Math) for children of all ages. Our hands-on programs pique the interest and curiosity of children (and adults!) at schools, camps, parties, festivals, and special events all over the world!

4. This is how much it’ll cost you to own an automotive franchise like Supa Quick and Dent Doctor

There are many automotive aftermarket franchises available to purchase. You will expect to fork out around R1.5 million to R2 million for most of these businesses. One of the easiest ways for new entrepreneurs to participate in the automotive sector is to buy into an existing automotive aftermarket franchise. This includes businesses like panel beaters, parts suppliers, tyre repair and sales, car batteries, vehicle repairs, and even carwashes.

5. #BizTrends2020: The social franchising opportunity

It wasn’t the pursuit of riches, the drive of ambition or even his love of spicy, flame-grilled chicken that led entrepreneur Louis Germishuys to open his then-Nelspruit-based business, Galito’s, to franchising.

ActionCOACH Promotional Offer

We’ve reflected on what happened over the past year and have seen first-hand the challenges and even devastation business owners have faced. We had to find a way to be part of the solution, as coaching is now needed more than ever before.

1. Growing Galito’s across SA

It wasn’t the pursuit of riches, the drive of ambition or even his love of spicy, flame-grilled chicken that led entrepreneur Louis Germishuys to open his then-Nelspruit-based business, Galito’s, to franchising.

Starbucks South Africa sold for R7m

Taste Holdings announced on Friday that it is selling its Starbucks franchise business in South Africa for R7m. It is being bought by a consortium of shareholders, including Rand Group, which is owned by Adrian Maizey, a non-executive director of Taste.

Owner of Steers and Wimpy takes profit hit

Famous Brands [JSE:FBR] – owner of Steers, Wimpy, Debonairs and Mugg & Bean – has suffered a 15% fall in headline earnings, while revenue remained flat at around R3.6bn in the six months to end-August.

Growing Galito’s across SA

It wasn’t the pursuit of riches, the drive of ambition or even his love of spicy, flame-grilled chicken that led entrepreneur Louis Germishuys to open his then-Nelspruit-based business, Galito’s, to franchising. Rather, it was the constant pleading from friends and family to share his creation with the world that eventually made him do so — everyone, it seems, wanted in on the piri-piri empire.

1 Introducing The Daily Coffee Express

The Daily Coffee Group, a fast-growing and truly South African coffee franchise group, has recently introduced its latest coffee franchise model, The Daily Coffee Express.

Krispy Kreme is heading to Cape Town

Krispy Kreme’s signature glazed doughnuts will soon be available in Cape Town as the company has announced plans to open its first store in the Mother City towards the end of 2019.

Why franchises are opting for shopping centres or malls

It has been proven time and again that choosing the right location is key to success in franchising. According to the latest FASA (Franchise Association of South Africa) survey, more franchises are choosing to be located at a shopping centre or mall.

Spur founder Allen Ambor retires

Effective from 1 March, founder of Spur Corporation Allen Ambor has officially retired after more than 50 years of service at the food franchise business.

How do I know which Franchise is right for me?

I have been asked this question many times before and I will probably be asked this question many times into the future. My simple response to this question is, “What are you passionate about and what can you afford?”

Franchise sector opens up the heart of any economy

Despite a struggling economy, the franchise sector has grown steadily and continues to make a strong contribution to the South African GDP across sectors, this is according to the Franchise Association of South Africa’s (FASA) 2018 survey.

Three franchising trends in South Africa

A recent survey conducted by the Franchise Association of South Africa (FASA) revealed that the franchising industry has grown from contributing 13.3% to the South African Gross Domestic Product (GDP) in 2017 to its current figure of 15.7% despite the tough economic climate and its impact on franchises.

What franchises need to lookout for from Budget Speech

Franchise business owners are waiting with bated breath for the outcome of the 2019 National Budget Speech to be delivered by Minister of Finance, Tito Mboweni, as they seek more opportunities to increase their contribution to GDP.

Corner Bakery grows year-on-year!

Corner Bakery is probably most well known in the Engen Quickshops in forecourts across Southern Africa – as the most convenient and delicious place for a premium pie, healthy snacks and an invigorating cup of Equatorial Coffee.

RocoMamas shines for Spur group

New stores on the cards for company’s star performer in places like India and Saudi Arabia as restaurant sales increase 31.5%

Real Foods appoints ex-CEOs Kevin Hedderwick and Antony Ball

Former Famous Brands group chief executive Kevin Hedderwick has joined the Real Foods board as group strategic director, while Antony Ball, the former co-founder, CEO and major shareholder of Brait, has also joined the Real Foods board as of 1 October 2018.

FNB announces the 7th Franchise Leadership Summit

FNB is hosting the 7th Franchise Leadership Summit at Montecasino on Tuesday, 13 November 2018. The summit is a well-attended industry discussion amongst high calibre franchisors and industry stakeholders

Local franchises boost Spur sales

Fast food chain the Spur Corporation says it recorded a 1.3% jump in franchised restaurants sales to R7.1bn, boosted by business from local outlets.

4. 14 food franchises that cost less than R2 million to open in South Africa

The fast food and quick service restaurant (QSR) sector continues to grow despite tough economic times. This is according to Andre Beck, sector head of Fast Food and Restaurants at FNB Business, who notes that with a contribution in excess of 29%, QSR has by far the biggest share in franchising turnover

1. FASA Awards honour SA’s leaders in franchising

The Franchise Association of South Africa’s (FASA) Awards for Excellence in Franchising held recently, saw health food brand Kauai walk off with multiple awards including the coveted title of Franchisor of the Year.

SA fast food franchising on the rise

The fast food and quick service restaurant (QSR) sector continues to show steady growth on the back of what has been a tough economic climate in South Africa. With a contribution in access of 29%, QSR has by far the biggest share in franchising turnover.

A taste for the Spur (franchise) life

Franchisee Donald Clarkson talks about how Nedbank has helped him grow his business and deal with some of the challenges of operating in the difficult SA economy.

SPUR FOUNDER ALLEN AMBOR TO RETIRE

Renowned businessman Allen Ambor (76), the founder and executive chairman of Spur Corporation, has announced that he will retire on 1 March 2019.

SARS TAX INCENTIVE FOR THE FRANCHISE SECTOR

FASA is proud to announce the launch of the first Section 12J Venture Capital Company (FASA VCC) for the franchise sector, to be utilised exclusively by accredited members.

FRANCHISING SECTOR READY TO LEND A HAND

The SONA speech by President Cyril Ramaphosa and his commitment to supporting small business and entrepreneurship has been welcomed by Tony Da Fonseca, the Franchise Association of South Africa’s Chairman.

SPUR EXPANDS FOOTPRINT DESPITE TOUGH TRADING CONDITIONS

Cape Town – Restaurant franchisor Spur Corporation experienced difficult trading conditions in South Africa and most of its major international markets in the six months to December 2017, reporting a 2.6% decline in total franchised restaurant sales from continuing operations to R3.7 billion.

KEY FRANCHISING TRENDS TO CONSIDER FOR 2018

The franchising industry has steadily shown adaptability to the tough economy by growing the sector 3,6% over the past four years – from contributing an estimated 9,7% to the country’s GDP in 2014 to its recent figure of 13,3%. This trend is expected to continue in the same trajectory in the short-term and could possibly improve should SA see better economic growth.

FRANCHISE SECTOR RALLIES TO ASSIST IN WATER CRISIS

As everyone around the country mobilises to try and assist the Western Cape with their water crisis, the franchise sector has also come on board to help – whether through donations or in cutting back on water usage. Many of the initiatives are spearheaded by the water retailers such as H2O, Oasis Water and Perfect Water who are working with organisations such as Gift of the Givers, the #5LitreChallenge and transport companies to take donated water to those in need. They are also installing water saving devises on their water filtration plants to recycle waste water.

PLAN B DESSERTERY OPENS IN JOBURG

Plan B Dessertery, a KwaZulu-Natal brand introduced by the founders of Wakaberry, has opened its doors in The Zone @ Rosebank in Johannesburg.

FRANCHISING SECTOR – THE YEAR THAT WAS

2017 has been a year fraught with challenges for both consumers and business alike. South Africa has however remained an eye-catching destination for international brands looking to expand their businesses; none show this more than franchising in South Africa.

THE DAILY COFFEE CAFÉ FRANCHISE GROUP RECEIVES TWO NATIONAL AWARDS

The Daily Coffee Café Franchise Group was announced Franchisor of the Year 2017 by the National Small Business Chamber of South Africa (NSBC) at a gala event held in Johannesburg on 9 November 2017. This is over and above also receiving the NSBC’s South Africa Top 20 Small Business and Entrepreneurship Award for the same year.

NEW LOOK FOR ZEBRO’S

South African chicken franchise Zebro’s has refreshed its corporate identity with a new logo and store look.

ZEBRO’S SHOWS ITS TRUE COLOURS

Known for its authentic braaied chicken and famous sauce, Zebro’s has revealed a new corporate identity and store look that is as South African and welcoming as a traditional braai.

FRANCHISING NO LONGER JUST A MAN’S GAME

Franchising is big business in South Africa. To date, national franchise group Cash Crusaders has a family of over 200 franchises (210 at last count) across southern Africa. The recession-proof business model and close relationship the company has with its franchisees make the secondhand giant a highly sought-after business opportunity for potential franchise owners who range from entrepreneurs and retirees to couples and families. More than 13 franchisees are women.

51% BLACK WOMAN OWNERSHIP FOR EXPRESS EMPLOYMENT PROFESSIONALS

Express Employment Professionals is proud to announce that Carolyn Diaz, managing director of Express SA, is now a 51% owner of Express SA. Carolyn has over 20 years’ experience in the staffing industry and has been the managing director of Express SA for the past 10 years – ensuring the success of the Express Services brand in South Africa through her combination of great leadership skills and business acumen.

HELLO TOMATO JOINS FOURNEWS FRANCHISE GROUP

Fournews, a South African franchise group, has acquired a 50% share in Hello Tomato, a brand specialising in pizza and pasta. John & Gerry’s Brands, which played an integral part in the growth of both Europa and Fego Cafe to over 60 stores in South Africa, is behind Hello Tomato and retains 50% of the company.

FNB ANNOUNCES THE 6TH FRANCHISE LEADERSHIP SUMMIT

The highly anticipated annual FNB Franchise Leadership Summit (FNB FLS) will take place at Indaba Hotel, Fourways on Thursday, 16 November 2017. The event is well attended by premium franchisors and companies that are interested in and those providing extended services in franchising as an expansion mechanism.

THE FASA CONVENTION COVERED ALL THE BASES

The over 150 delegates who attended FASA’s annual convention sponsored by Absa were treated to concurrent sessions where 42 industry representatives and top speakers covered six broad areas of business – Franchise Operations, Franchise Relationships, Finance & Funding, Growth & International Expansion, Marketing & Technology & Legal. We picked up some key insights and words of wisdom from some of the speakers.

GOURMET CAN’T BEEF UP FAMOUS BRANDS

Famous Brands has joined the ranks of local restaurateurs buckling under the weight of global names.
The group said on Wednesday that its beefy investment in UK premium burger company Gourmet Burger Kitchen (GBK) would eat into its interim earnings. As a result, the group had taken the decision to scale back on opening new stores. Famous Brands warned on Wednesday that its results for the six months to end-August would be weaker than those reported a year ago.

PROMINENT PAINTS OPENS FIRST FRANCHISE STORE IN MIDRAND

Expanding its footprint into new areas, leading paint manufacturer – Prominent Paints – has begun to launch franchise stores with the first now open in Midrand; a retail centre that has almost 80 years of collective industry experience between the five staff.

POPEYES® LOUISIANA KITCHEN NOW IN SOUTH AFRICA (IT’S ABOUT TIME)

The iconic American restaurant brand, Popeyes Louisiana Kitchen, will soon serve authentic Louisiana-inspired chicken in South Africa. From July 13, 2017, guests can experience the mouth-watering menu at the first Popeyes restaurant in South Africa, located in the Sandton City food court.

VISIT THE ABSA FRANCHISE BUSINESS FESTIVAL – 30TH JUNE TO 2ND JULY

The Absa Franchise Business Festival – in its new format and new venue at the Kyalami Grand Prix, Exhibitions & Convention Centre from the 30th June to the 2nd July 2017, 10am to 6pm daily – will showcase just that – visitors to this exciting new franchise exhibition will be able to experience, in real time, exactly why and how franchising has become part of everyday life.

SO FRESH: DOMINO’S PIZZA DELIVERS A FRESH DOUGH EXPERIENCE EVERY DAY

Since launching in 2014, Domino’s Pizza has grown close to 90 stores and has arguably become a leader in the food delivery space. Much of its success can be attributed to their innovative menu and delivery service but the best-kept secret is that Domino’s pizzas are made with fresh dough.

IMPERIAL SASFIN LOGISTICS WINS NANDO’S CONTRACT

Imperial Sasfin Logistics has been awarded a 4PL (fourth party logistics services) contract to supply Nando’s bastings, sauces, spices, marinades and packaging to Nando’s restaurants and licensed markets in 14 countries.

THE FRANCHISE BUSINESS FESTIVAL SHOWS THE WAY

FASA’s upcoming Franchise Business Festival (FBF), scheduled to take place at the Kyalami Race Track Exhibition Centre from the 30th June to the 2nd July 2017, shows the way forward.