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Welcome
to Franchise Finder Newsletter February/March
2007.
In this issue we have a look at: |
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-
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.. |
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| Franchising
continues to grow in South Africa as shown
in the results of a recent survey carried
out by Franchize Directions. |
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| 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
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| The
number of BEE franchise owners increased to 32%
of all franchise outlets compared to 22.9% in 2004.
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| 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.
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| (Survey
Results: Franchize Directions. Source:FASA) |
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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.
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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
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| Franchise
Features |
| Cash
Converters |
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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.
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| Multiserv |
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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 |
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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.
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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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By listing your franchise on our website, you not only
improve your online presence and brand visiblity, but you also
put a different type of advertising to the test. Entrepreneurs,
both young and old are becoming more and more technologically
savvy and are searching the web for opportunities and information,
more often. So by having your franchise information listed online,
and on a variety of web-based sources, you are essentially delivering
information to those who are searching for it!
To list on Franchise Finder simply contact
us or
Email us for a booking and info form. |
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