February/ March 2007  
 
Welcome to Franchise Finder Newsletter February/March 2007.
In this issue we have a look at:
- - Results of a South African Franchise Survey carried out by Franchize Directions
- Franchise Features - The Ink Place, Multiserv and Cash Converters
- International Focus: 2007 Franchising Trends for America
- Where to look for Business Ideas..
Franchising continues to grow in South Africa as shown in the results of a recent survey carried out by Franchize Directions.
The number of franchise systems in South Africa has grown by 49% to 470 over the past two years
The total number of franchised outlets increased by 24% to 25 870
The total turnover of the industry increased by 48% to R188 billion.
Collectively the franchise sector currently employs a further 372 518 people directly compared to 232 489 in 2005
The number of BEE franchise owners increased to 32% of all franchise outlets compared to 22.9% in 2004.
87% of the current franchise systems originated in South Africa, with 53% of the balance being international master licenses originating from the USA.
At least 90 franchise systems have outlets elsewhere in Africa, while 31 have operations in other countries.
(Survey Results: Franchize Directions. Source:FASA)

latest franchisors to be added
Cash Converters
Multiserv
Spur Steak Ranches
The Ink Place
IFE 2007
International Franchise Expo
3-5 May 2007
Sandton Convention Centre
South Africa
International Franchise Expo
30 March to 1st April 2007
Washington D.C.

With the 3-month skip payment option on your Small Business Term Loan from Absa, your business assets could start paying for themselves before you ever begin paying them off.

With a Small Business Term Loan from Absa you get:

• A term loan that puts cash straight into your business
• Flexible repayment terms from a minimum of 12 months
• A 3-month skip payment option

Click here for more information

Offer valid until 31 May 2007
Normal credit criteria applicable

Franchise Features
Cash Converters
Cash Converters Franchise
Description and Background of Business:
Cash Converters started operating in South Africa in 1994. Cash Converters was established in Perth in 1984 and currently has over 600 stores operating worldwide.

Cash Converters has grown to become the world’s largest international retail chain specialising in the buying and selling of pre-owned goods. Cash Converters stores are upmarket, well located, modern retail outlets servicing a much needed niche in the marketplace. Our buyers purchase quality pre-owned merchandise from customers in their respective communities and also sell same at prices everyone can afford.

Three businesses in one!
1) Secondhand dealing
2) Secured money lending
3) Micro lending

Minimum Investment:
R750 000 (R400 000 unemcumbered capital, the balance can be financed)

Training:

All new franchisees will go through 2 weeks classroom training and a further 6 weeks in-store training. All new staff also get put through training.

Multiserv
Multiserv
Description and Background of Business:
Multiserv is a retail outlet providing shoe repairs, key cutting, shoe and leather care products, a dry cleaning depot, self hire carpet cleaners and public phones. There are a whole range of add-on services as well.

Multiserv was started in 1969 and is now South Africa's Largest Heel and Key Bar with well over 160 stores nationwide.

Minimum Investment:
R200 000, exclusive of VAT, with R51 000 unencumbered capital as a deposit. The balance can be financed with or without our assistance.

Training:
All franchisees and operators go through intensive hands-on and classroom training, followed by in-store training.

The Ink Place
The Ink Place
Description and Background of Business:
The Ink Place specialises in the fast growing industry of printer consumables through affordable franchised shops and mobile add-on units with a profitable and proven business model.

The Ink Place provides a superior business system to enable it’s franchisees to own very lucrative business ventures through different franchising options, advanced training and focused support. The Franchise Options can be tailor-made to suit the individual franchisee’s needs as well as that of the area and environment.

The 7 years extensive specialised experience that The Ink Place offers through its operations manual, training and support network will ensure the ongoing success of each venture.

Ink Inc started operating in Feb 2000 under the company name "Pro Marketing Solutions". We started by selling refill kits from a residential house, and at this stage it was a sideline business. We soon realised that we had a good product and needed professional premises.

In November 2000 we opened our first retail shop in Centurion (Highlands Centre), in June 2001 the second retail shop in Magalieskruin (Magalieskruin Shopping Centre), and March 2002 the 3rd shop in Garsfontein (Eastdale Pavilion). March 2002 also saw us moving to our current head office (110 Bronkhorst St, Groenkloof), as we needed to operate from bigger premises. We currently have 4 branches in Pretoria and dealers nationwide. We started importing the Inknara brand of refill kits and generics after a visit to the annual "Recharge Expo" in Las Vegas in 2002 where we carefully examined all the products available world wide. We decided on the Inknara brand because of the high quality, used friendliness and reasonable pricing structure. Another plus to importing is the fact that we have now cut out the middle man and passed on the savings to our clients, making us one of the most affordable printer consumable retailers in the country.

We pride ourselves in our extensive knowledge of our field, and our exceptional customer service, as well as our wide range of high quality products.

Minimum Investment
Add-on Kiosk (Standard): R20 000, Full Shop Option: R50 000, this initial amount includes R16 000 start-up stock, franchise fee, training course and manual, operations manual. Other expenses: Start-up advertising: R2 500, Shop set–up and fitting out (max): R15 000, First month working capital: R10 000, Total amount needed: R72 500

Training
The Ink Place offers an extensive 5-day training course for up to 5 people at our head office and shops. The cost of the training course is included in the initial franchise fee. The course covers both the running of the business and the more technical side of working with printer cartridges.

International Focus: Franchising Trends for 2007 (America)
Source: Entrepreneur Magazine - January 2007
Author: Sara Wilson

Which types of franchises boast standout growth? Here's what's happening in the industry.

• Senior-care services: As America ages, the senior-care industry is maturing beautifully. Growing 342 units in 2006, established franchises are flourishing and new ones are emerging. Franchising only since October, Caring Transitions specializes in senior home transition and the liquidation of personal belongings, usually in the event of death. CEO Gary Green aims to have 30 to 50 franchises throughout North America within the company’s first year. Adds Green, “There’s a huge need for this.”

• Personal-care services: Baby boomers may be young at heart, but their desire to look young as well has spurred the growth of franchises offering laser, skin-care, med-spa, massage, fitness and tanning services. “Twelve thousand people turn 50 every day in the U.S.,” says Charles Engelmann, CEO of Radiance Medspa. Engelmann believes the key for continued growth in the industry is education about the services. “Less than 10 percent of the American public is aware that these treatments are available,” he points out, “and less than 4 percent have actually experienced them--it’s already a multibillion-dollar industry.”

• Enrichment learning programs for kids: When it comes to learning programs for children, the segment increased by 850-plus units, but 2006 also saw diversification with new types of programs, such as a cooking school and an abacus learning program. Obviously, the franchising industry remains focused on children--and children’s education in particular. According to educational market research and consulting firm Eduventures LLC, revenue for assessment, tutoring, test-preparation services and supplemental content suppliers grew 6 percent to $21.9 billion in the 2004-2005 school year.

• eBay drop-off stores: The largest global online marketplace has been creating opportunities for all, including franchises that list and sell items for those lacking eBay savvy. While the early-established eBay drop-off franchises like iSold It generally dominated the market, a few fearless competitors joined the race in 2006. Meanwhile, eBay is still going strong, with users worldwide trading more than $1,590 worth of goods on the site every second.

• Food: Franchises and their customers will never go hungry. Franchises serving up salads and smoothies enjoyed healthy growth last year, a couple of chicken-wing newcomers made their way into this year’s listing, and coffee franchises are holding their own (even major players Burger King and McDonald’s have upped their gourmet coffee offerings to capture a portion of the coffee profits). Additionally, nonrestaurant food-related franchises are growing: chocolate fondue, food as gifts (like fruit baskets) and wine, to name a few.

• New and unique concepts: Hamburgers and pizza will always be American classics, but innovative, original and sometimes wacky franchise concepts are starting to shake things up. Cereality has made it big with endless hot and cold cereal options, Miami Rice Pudding Co. offers more than 30 flavors of rice pudding, and P.B.Loco keeps things nutty with its extensive line of savory and sweet peanut butters. Says Ken Hall, co-founder of P.B.Loco, “Our market research showed [that] many successful companies take existing products and either add a new twist or improve on them.”

• Business consulting/staffing: Every business needs help sometimes--and that need is keeping business consulting and staffing franchises growing. In addition to nearly double the number of business consulting franchises, there is also a new emphasis on companies offering small-business and franchise-brokering/consulting services. Regarding staffing, we saw significant growth among the larger companies in 2006, and it looks as if franchises might be making a comeback in an industry they once dominated. “Some companies are making franchising a large part of their growth strategy,” says Richard Wahlquist, president and CEO of the American Staffing Association in Alexandria, Virginia. The Bureau of Labor Statistics predicts staffing services will be one of the fastest-growing industries over the next five to 10 years.

Where to look for New Business Ideas: Unique and Interesting ideas from 2 websites that scan the globe for hot new business concepts and trends.
Springwise.com
Springwise and its global network of 8,000 spotters scan the globe for smart new business ideas, delivering instant inspiration to entrepreneurial minds from San Francisco to Singapore. Time to start the Next Big Thing!

Trendwatching.com
Trendwatching.com, the sister site of springwise.com, is an independent and opinionated trend firm, scanning the globe for the most promising consumer trends, insights and related hands-on business ideas. For the latest and greatest, we rely on our network of 8,000+ spotters in more than 70 countries worldwide.

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