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Franchising is likely to see continued growth in 2018, as the sector remains a core part of
the country’s business sector, which is likely to be boosted by the appointment of Cyril
Your email address Ramaphosa as president of the nation. Subscribe
South Africans are also showing increasing appetite in becoming a franchise owner
according to a BusinessTech poll conducted earlier in February 2018.
The poll – which attracted 5,644 votes – found that 61% of readers were interested in
buying a franchise, while 3% (145 voters) indicated that they already owned at least one.
Based on this data, BusinessTech looked at eight franchises, across a variety of sectors,
which are currently available to purchase for less than R1 million.
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All franchisees are required to complete a five-day training program that covers day-to-
day operations, staffing, stock control, marketing, and management skills.
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According to Debonair’s latest franchising documentation, new franchise owners can
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expect to pay between R800,000 – R1,400,000.
Similar to other Famous Brand-owned restaurants, franchisees are also expected to pay
7% of their turnover in management fees and 5% of their turnover in royalties.
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Wilcote is a manufacturer, supplier and applicator of professional solutions to all
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waterproofing, interior and exterior redecoration projects.
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The 3@1 Business Services franchise concept offers a retail opportunity in the business
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services and communications industry.
Boasting cemented partnerships with DHL International and Kodak International Express
photographic provider, its franchisees can offer an ever-broadening selection of
services.
3@1 promotes owner-operated stores starting out with two staff members, while offering
a consultative, personalised service.
Applicants have a choice of two business formats — a standalone full store setup
measuring 50-80 sqm, an Express Store option occupying 30-45 sqm or a kiosk option
occupying 15-25 sqm either in a regional mall, strip mall or stand-alone site.
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According to its latest franchising data, the total estimated initial cost for a standard
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Zebro’s outlet of 80-100 sqm is R949,900.
The total cost makes provision for store design, staff training, and launch promotion
materials during opening and support from head office from day of opening.
A thorough setup cost projection schedule of your specific location will become available
further into the application process.
Zebros chicken will provide these figures to assist in analysing a typical outlet
construction. These estimates are based upon our construction experience associated
with previous Zebros outlets as well as the industry standard costs of construction.
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Your email address H2O International SA has over 20 years experience in providing South Africans with Subscribe
water and air purification systems.
H2O said that a typical day involves motivating and managing your sales team and
internal staff, manning your state-of-the-art water bar or water station, servicing existing
customers, and ordering stock for more sales and rentals.
Set up costs range from R325,000–R625,000 (excluding VAT) depending on the type of
franchise, location and the quality of the source of the water to be bottled. The total set
up cost provides you with a complete turnkey operation.
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The franchisor’s operational planning department assists franchisees by researching new
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store locations, designing the store formats and preparing budget and financial
projections for each site.
Once an outlet is open for business, franchisees can call on their dedicated area
representative for operational support, should the need arise.
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Sorbet says that the exact amount of your investment will depend entirely on the size
and condition of your selected store and varies from site to site. 50% of this amount
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should be available in unencumbered cash as a deposit (funding can be obtained for the
balance).
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According to the beauty store’s latest franchising costs, you can buy a 60 sqm nailbar for
around R1 million, while a Sorbet salon and Candi franchise will cost you slightly more
with a total cash requirement of between R1.6 million – R1.7 million.
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