Frequently Asked Questions

Below are frequently asked questions about franchising and working with a professional Franchise Consultant agency. If you do not see your questions answered here please do not hesitate to contact us.

Why Would Someone Use A Franchise Consultant?

A professional franchise consultant can offer candidates a wealth of general and inside information about the franchise industry as well as specifics about franchise industries and opportunities.

Who Might Look To Franchise As An Avenue Of Growth?

Nearly any business can be franchised with the right business tools and strengths. Franchising is a wonderful growth opportunity for businesses that have already set up their business models and are enjoying profitability. More so, businesses that have unique concepts and innovative market approaches are highly viable for market acceptance in franchising. Though unique in proposition, businesses that are easily adaptable through standardisation models are attractive for franchisees looking for simple operations.

How Long Does It Take To Prepare A Business For Franchise?

Franchising is a favourable avenue for businesses endeavours of the actual market studies made for its favourable outcome. The actual time taken to prepare different businesses for franchise, vary according to scope. After determining the franchisability of your business, a road map is crafted for your business's success. Thereafter, the consultant will dedicate another block of time to document and prepare the entire franchise system. A time frame between 4 - 6 months is observed, depending on the development of the business processes.

How Much Will It Cost To Franchise My Business?

Franchising is one of the most cost effective ways to grow your business. At Infinity Brands, preparing your business for franchise is just the beginning of your company's growth. Infinity Brands understands that growth begets success. We prepare very comprehensive franchise packages offered at very affordable prices. On top of that, we have franchise projects for companies who wishes to get on the fast track quickly and packages that help franchise businesses in phases.

What Are Our Service Fees?

Our services fees are subjective to the service and business assessment.

How Widespread Is Franchising?

Franchising in South Africa - Franchising plays a leading role in fostering entrepreneurship, in small business development and in job creation in South Africa.

Business Categories

  • With franchising active in around 17 business categories in South Africa compared to over 70 in the United States.
  • Once dominated almost exclusively by fast foods and restaurants, there is now a range of sectors that have successfully established themselves in the marketplace.
  • Although fast foods and restaurants remains the highest at 22%, with retail second with 20% giving a combined 42% share of the franchise market, the growth of other business categories is encouraging.
  • Sectors such as business-to-business (at 10%), building, office and home services (at 9%), automotive products and services (at 8%) have proved themselves invaluable in the economic downturn as consumers turn to home improvements or car repairing rather than buying new.
  • Childcare, education and training (at 8%) is another area that has proved resilient and continues to grow as people focus on improving their skills and preparing their children for the future.

Longevity

  • The global recession has had an impact on South Africa.
  • Five out of seven new small businesses in South Africa close their doors within a year of opening.
  • The results from this FASA Franchise Survey show that just under one in two (46%) of franchisors have been in business for more than 12 years and 75% have been in business for more than 6 years.
  • With such an outstanding track record franchising should lead the SME sector as the key driver for economic growth, employment and social amalgamation in South Africa.

Franchises Opened And Closed

  • Fast food outlets and restaurants dominate with 30% (356 stores) of the businesses opened being fast food outlets and restaurants, followed by retailing opening 254 stores.
  • In contrast 341 franchise businesses were closed down during the franchisors’ last financial year. 23% of these were fast food outlets, 13% in the childcare, education and training sector and 10% were business to business services and real estate franchises.
  • If the new stores are offset against the stores closed down, the net gain is 884 stores.

Challenges

  • The main challenges were to running a franchise, surprisingly the “people factor” took top priority with respondents citing “finding the right franchisee” (20%), “skills required” (20%) and “staffing” (19%) as their most pressing challenges.
  • External costs beyond the franchisor’s control was the 2nd biggest challenge which relates directly to accessing finance and the rising costs in rentals, electricity and fuel – all factors that have had a huge impact on any business’ bottom line.
  • The “internal costs” that fall under the franchisor’s control which include maintaining standards and managing costs.

A Franchise Fundamental

  • “Being in business for yourself but not by yourself”
  • What lies at the heart of franchising is the fact that it is not a business, but rather a way of doing business and if the fundamentals of the franchise format are followed, it can be adapted to almost any industry, across all sectors and services.

Why Would Someone Use A Franchise Consultant?

A professional franchise consultant can offer candidates a wealth of general and inside information about the franchise industry as well as specifics about franchise industries and opportunities.

Who Might Look To Franchise As An Avenue Of Growth?

Nearly any business can be franchised with the right business tools and strengths. Franchising is a wonderful growth opportunity for businesses that have already set up their business models and are enjoying profitability. More so, businesses that have unique concepts and innovative market approaches are highly viable for market acceptance in franchising. Though unique in proposition, businesses that are easily adaptable through standardisation models are attractive for franchisees looking for simple operations.

How Long Does It Take To Prepare A Business For Franchise?

Franchising is a favourable avenue for businesses endeavours of the actual market studies made for its favourable outcome. The actual time taken to prepare different businesses for franchise, vary according to scope. After determining the franchisability of your business, a road map is crafted for your business's success. Thereafter, the consultant will dedicate another block of time to document and prepare the entire franchise system. A time frame between 4 - 6 months is observed, depending on the development of the business processes.

How Much Will It Cost To Franchise My Business?

Franchising is one of the most cost effective ways to grow your business. At Infinity Brands, preparing your business for franchise is just the beginning of your company's growth. Infinity Brands understands that growth begets success. We prepare very comprehensive franchise packages offered at very affordable prices. On top of that, we have franchise projects for companies who wishes to get on the fast track quickly and packages that help franchise businesses in phases.

What Are Our Service Fees?

Our services fees are subjective to the service and business assessment.

How Wide Spread Is Franchising?

Franchising in South Africa - Franchising plays a leading role in fostering entrepreneurship, in small business development and in job creation in South Africa.

Business Categories

  • With franchising active in around 17 business categories in South Africa compared to over 70 in the United States.
  • Once dominated almost exclusively by fast foods and restaurants, there is now a range of sectors that have successfully established themselves in the marketplace.
  • Although fast foods and restaurants remains the highest at 22%, with retail second with 20% giving a combined 42% share of the franchise market, the growth of other business categories is encouraging.
  • Sectors such as business-to-business (at 10%), building, office and home services (at 9%), automotive products and services (at 8%) have proved themselves invaluable in the economic downturn as consumers turn to home improvements or car repairing rather than buying new.
  • Childcare, education and training (at 8%) is another area that has proved resilient and continues to grow as people focus on improving their skills and preparing their children for the future.

Longevity

  • The global recession has had an impact on South Africa.
  • Five out of seven new small businesses in South Africa close their doors within a year of opening.
  • The results from this FASA Franchise Survey show that just under one in two (46%) of franchisors have been in business for more than 12 years and 75% have been in business for more than 6 years.
  • With such an outstanding track record franchising should lead the SME sector as the key driver for economic growth, employment and social amalgamation in South Africa.

Franchises Opened And Closed

  • Fast food outlets and restaurants dominate with 30% (356 stores) of the businesses opened being fast food outlets and restaurants, followed by retailing opening 254 stores.
  • In contrast 341 franchise businesses were closed down during the franchisors’ last financial year. 23% of these were fast food outlets, 13% in the childcare, education and training sector and 10% were business to business services and real estate franchises.
  • If the new stores are offset against the stores closed down, the net gain is 884 stores.

Challenges

  • The main challenges were to running a franchise, surprisingly the “people factor” took top priority with respondents citing “finding the right franchisee” (20%), “skills required” (20%) and “staffing” (19%) as their most pressing challenges.
  • External costs beyond the franchisor’s control was the 2nd biggest challenge which relates directly to accessing finance and the rising costs in rentals, electricity and fuel – all factors that have had a huge impact on any business’ bottom line.
  • The “internal costs” that fall under the franchisor’s control which include maintaining standards and managing costs.

A Franchise Fundamental

  • “Being in business for yourself but not by yourself”
  • What lies at the heart of franchising is the fact that it is not a business, but rather a way of doing business and if the fundamentals of the franchise format are followed, it can be adapted to almost any industry, across all sectors and services.