What is a Business Franchise?
A franchise is a business arrangement where one party (the franchiser) grants another party (the franchisee) the right to operate a business using the franchiser’s brand, products, services, and operational model.
In return, the franchisee typically pays fees and royalties to the franchisor for the ongoing support, training, and access to the brand and business systems. Franchises are a popular way for individuals to own and operate their own businesses with the support and recognition of an established brand.
Top 9 Most Profitable Franchise Businesses in South Africa
- What is a Business Franchise?
- McDonald’s: Lovin It
- Engine Petroleum
- Debonairs Pizza
- Supa Quick
- Chicken Licken
Wimpy was founded in 1934, in Bloomington, Indiana, US, and Introduced in South Africa in 1967, is a renowned fast-food chain known for its Burgers and Breakfast options. Its longstanding presence in the country has contributed to its profitability. The number of Franchised Restaurants is 500+
The cost of setting up a standard Wimpy Restaurant ranges between R1.7 Million and R2 million, a Franchise fee of R80 000 is Required. Wimpy requires Applicants to have 50% of the Total Cost Available in unencumbered cash.
For Project Management Fee and Building Costs and other Related Franchise Costs, We advise you to Fill out the Contact form on their Franchise website.
2. McDonald’s: Lovin It
McDonald’s needs no introduction. Founded by the McDonald brothers in 1940, and sold to Ray Kroc in 1961, this global fast-food giant has been serving up its iconic burgers, fries, and shakes for decades. Introduced to the South African Market in 1995.
With its widespread presence, enduring popularity, and 300+ Restaurants in all 9 provinces, McDonald’s is a top contender in the South African franchise market.
To Own a McDonald’s Franchise in South Africa you need R4 Million – R6 Million depending on Location, store size, and all costs related to the design of the Franchise, 35% of which must be unencumbered Cash Contribution.
3. Engine Petroleum
Engen Petroleum, with roots dating back to 1881, is a prominent player in the South African petroleum industry. Operating 1 280+ service stations and convenience stores, Engen has maintained a strong presence and profitability in the market.
To own an Engine Franchise you must have at least R8, 40 million, of which R1.5 Million is for Working Capital. Franchises Must have 20% of this as unencumbered cash.
Spar, founded in 1932 in the Netherlands, Spar opened its first store in South Africa in 1963 and has been serving the South African market since then. With various 2500+ store formats, including supermarkets and convenience stores, Spar has consistently delivered profits.
Spar offers 3 options for those Interested in Franchising the brand, Buy an Existing store, Convert your Store into a Spar Store, or Develop your Own Store.
Start-up Costs of Buying an Existing Spar store include:
- KWIKSPAR- R5 Million+
- SUPERSPAR- R10 Million+
- SPAR- R8 Million+
Kentucky Fried Chicken, or KFC, was founded by Colonel Harland Sanders, with its first franchise in 1952. Known for its secret blend of herbs and spices, KFC began serving South Africa in 1971 when the first KFC restaurant opened in Johannesburg, now with over 960 KFC outlets.
KFC has become a South African favorite, with its finger-licking-good chicken and diverse menu options.
To own a KFC franchise you must buy an existing franchise, as yum! brands International has stated that they are currently not looking for new franchises. To purchase an Existing Franchise you can Expect to pay R6 Million+ depending on location, size, and operating requirements.
6. Debonairs Pizza
Debonairs Pizza, founded in 1991 by Craig McKenzie and Andrew Harvey in Pietermaritzburg, Kwazulu-Natal, has grown into one of South Africa’s leading pizza delivery franchises with over 600 branches. Its innovative menu and commitment to quality have contributed to its profitability.
The cost of Owning a Debonairs ranges from 1.7 Million + a 12% Monthly royalty fee. Visit the Debonairs Pizza Website for all Franchise Costs Inquiries
Steers is a South African franchise founded in 1960, by George Halamandres and Apostolos John Lekka, has established itself as a beloved South African burger franchise with 649 Franchises.
With a reputation for flame-grilled perfection, Steers has garnered a loyal customer base.
Steers Franchise costs an initial investment from R1.97 Million- R3.75 Million, with a Franchise fee starting from R68 000-R75 000 and a Royalty Fee of 11%. You can Submit all inquiries related to Owning a Steers Franchise to the Steers Head office or alternatively fill out a contact form on their Contact Website.
PostNet South Africa, Founded in 1994, offers a range of postal, printing, and business services. Its convenient locations and diverse offerings have made it a profitable choice for 450 owner-managed franchisees.
Costs: from R860 000 depending on Location and Store size + R95 000 Joining Fee and 9% marketing and management fees.
9. Supa Quick
Supa Quick, founded in 1986, is a leading tire and auto service franchise in South Africa. With a reputation for quality service and products, it has secured its place among the country’s most profitable franchises.
Cost to Run a Supa Quick Franchise: R1.5 Million- R2 Million of which 50% must be unencumbered. Read Supa Quick Full Franchise Documents Here(PDF)
10. Chicken Licken
Chicken Licken® First Opened in 1981, Ridgeway. The Brand has turned to be a south african favourite. Chicken Licken is a profitable franchise in South africa due to it’s popularity and reputation “Feeding people’s Cravings.
The initial franchise fee is R180,000.00. Chicken Licken® charges a royalty fee (6%) and advertising share (6%) that account for 12% of the franchise’s turnover.
Chicken Licken® store costs: R4,8 million
Chicken Licken® Fly-Thru™ cost: R6,8 million minimum.
To Apply or Learn More about Chicken licken, Read on the official Franchise website.
To determine the exact cost of operating a specific franchise in South Africa, you should contact the franchisor directly. They can provide you with a Franchise Disclosure Document (FDD) or similar document that outlines all the costs and requirements associated with their franchise opportunity.
It’s crucial to conduct thorough due diligence and consider seeking advice from financial professionals before committing to a franchise investment. Additionally, South Africa may have specific regulations and legal requirements related to franchising, so it’s important to be aware of and comply with these as well.