Starting a franchise business is a great way to get into entrepreneurship. Franchises come with laid-out business practices and training on how to make your franchise a success. Before you can go and apply for a franchise, you need to know what the top franchises in South Africa for 2024 are.
A franchise is a business model where the owner license’s its operations, products, branding and knowledge in exchange for a fee. The purchaser of the franchise is the franchisee.
If you are looking to start 2025 with a new franchise business, then this article is for you! We will look at the top franchises of the year in South Africa.
1. Chicken Licken
Chicken Licken is one of the most successful franchise businesses in South Africa. Currently, there are over two hundred and eighty franchises in South Africa. When you apply for a Chicken Licken franchise, you will need R 4,8 million with an initial franchise fee of R 180 000.
Additionally, the company takes a royalty fee (6%) and advertising fee (6%). These make up 12% of your franchisee’s turnover.
2. Kentucky Fried Chicken (KFC)
KFC is still the most popular franchise in South Africa. There are over a thousand KFC stores throughout South Africa. This shows that the franchise is popular and successful. To purchase a KFC you will need around R 6 million in capital.
The amount depends on location, size of the franchise and operation requirements.
3. Wimpy
Wimpy is one of the oldest fast-food brands in South Africa and also one of the most popular franchises. There are currently over four hundred and fifty Wimpy stores in South Africa. To purchase a Wimpy franchise, you will need between R 1,75 million to R 2,4 million and you will need an initial fee of R 92 500 for plans. Additionally, the company charges a project management fee which is 4% of the build cost.
4. Debonairs
Under Famous Brands, Debonairs has become one of the most successful franchises in South Africa. There are over seven hundred Debonairs stores in South Africa making it a good business idea for franchising. To open your own Debonairs, you will need at least R 2,24 million to set it up. The company also requires R 68 000 in initial franchising fees.
5. Steers
Steers is another really prominent and successful franchise in South Africa. There are over six hundred and fifty Steers stores across the country and typically they are found right next to Debonairs stores. To purchase your own Steers franchise you will need between R 1,97 million to R 3,75 million. Famous Brands also requires a franchise fee of between R 68 000 and R 75 000.
6. McDonald’s
McDonald’s is the most popular and successful franchise in the world. In South Africa, the brand has experienced the same popularity and currently has over three hundred and seventy stores across the country.
To open a McDonald’s franchise you will need between R 4 million and R 6 million and an unencumbered cash contribution of 35% (between R 1,4 million to R 2,1 million). The total investment depends on your location, store size, styling and pre-operation expenses.
7. Fishaways
Fishaways is very popular amongst South Africans. There are currently over two hundred and forty Fishaway stores across South Africa and Africa. To open your own Fishaways franchise you will need a set up capital of R 1,65 million excluding VAT, joining fee and contingency. The set-up costs cover equipment, shopfitting, wet works, furniture and fixtures.
8. Roman’s Pizza
Roman’s Pizza is climbing the ladder quickly when it comes to fast-food pizza. The company currently has over two hundred and forty stores across South Africa. To own your own Roman’s Pizza franchise you will need a total investment fee of at least R 3,39 million and an initial joining fee of R 90 000. Costs vary according to store size, location and other factors.
Additionally, you will also need a minimum of R 1,6 million in unencumbered cash.
9. Nando’s
Nando’s is the second most popular chicken fast food franchise in South Africa. There are over 300 Nando’s stores in South Africa and even more across the world. To open a Nando’s franchise you will need between R 5,7 million and R 6,94 million. This fee depends on whether you want a drive-thru or inline store.
There are also additional fees such as a franchise fee of R 250 000 for both types of stores.
These are the top franchises of 2024. Of course there are others which are popular locally but not yet popular in the franchising space. You need to do your research to find out which franchise will work best for your location, and which one will make you good profits.
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