Franchises have been around for a long time, and their success can be seen globally. Many of the most successful international and local franchises are known even in the most remote regions of the country, and so it is not surprising that there are many people looking to take advantage of franchise opportunities in South Africa. There are, however, a few lessons to be learnt from those who have tried and been unsuccessful in taking on a franchise in the past.
Newer doesn’t mean better
For many keen entrepreneurs, the attraction of a bright new franchise looks extremely promising and enticing. However, studies have shown that some franchises, especially new ones, have failure rates as high as 90%! This is an alarming figure, and it is in stark contrast to the success of the ‘older’, more well-known franchises.
Franchises are just as vulnerable to failure as any other business, because in business there is no such thing as an absolute guarantee. However, older and more established franchisors tend to have a much more effective and well-tested business model. That is exactly why Cash Converters franchises have proven so successful globally. We have experience in both good and bad economic climates, and so we have developed an effective recession-resilient business model that ensures a far greater chance of success to our franchisees. With more than 700 stores in 22 countries and over years of experience in Southern Africa, we know what works.
All that glitters is not gold (do your research)
Franchisors both old and new are prone to promising wonderful, guaranteed franchise opportunities in South Africa, but you should never take those promises at face value. Research is an absolute imperative before committing to any business venture. You will be investing millions into this franchise opportunity, so look up the franchisor and make sure that they are truly successful and that they really do have a well-planned business model and support structure. Another good idea is to search the internet for complaints against franchisors. There will always be complaints, but if the same complaints come up continuously then there must likely be something to it. Caution is key.
Franchisees are team players, not monarchs
There are those who think that buying a franchise makes them the big boss of their own business, but the reality is that you are still working with guidance from the head office. Essentially, as a franchisee, you are like the captain of a football team. You keep the team together in the field and manage the game-plan as it happens, but off of the field the coach stands and watches you, giving guidance every now and then. The coaches and managers are the strategisers, because it’s their team and they know how best to help the captain lead his or her team to victory.
Having a qualified and experienced team at head office is one of the biggest reasons for the success of franchises such as Cash Converters. You are the boss of your own branch, and with the head office behind you, we ensure that you have all the necessary training and advice to make a success of your own franchise store.
There is a host of franchise opportunities in South Africa, and they are not going away anytime soon. Do your research and make an informed choice. For more information on Cash Converters’ franchise opportunities have a look at our franchise page and blogs to see what we’re about.