Top 5 South African Franchises for Under R1 Million

Research indicates that over half the South African working population is interested in entrepreneurship, with 40% feeling like entrepreneurial opportunities in the country are good. With SA’s economic forecast looking up for the first time in a long time, those numbers are only likely to grow. Buying into a franchise is a good outlet for someone with entrepreneurial aspirations – so we’ve got a list of the top 5 franchises you can buy into.

H20 International

The initial investment for this water and air purification service provider starts at R325,000 – which is one of the more affordable options on the list. The day-to-day activities generally involve the management of sales teams, servicing existing customers, and making sure stock levels are consistently maintained. With health and nutrition being a growing area of interest for a lot of South Africans, this full turn-key operation is definitely market-relevant.

Sorbet

Sorbet falls more on the opposite side of the initial investment spectrum – with the minimum investment requiring in the region of R1 million as well as R500,000 in unencumbered cash, which is a higher threshold. Nail bars and beauty salons are, historically, some of the most recession-proof businesses around, though, so it’s a resilient asset. Investing in something that’s less sensitive to economic cycles is never a bad idea, so the initial up-front investment being higher could pay off in the long run.

The Bed Shop

We’ve all got to sleep, right? Buying into something that’s an essential product is also a solid bet when it comes to franchise investment, since there will usually be a floor-level of expected revenue for something like bed sales, but they’ll obviously grow more as a country’s economy becomes healthier. The Bed Shop franchisor also provides a lot of marketing and promotional support nationwide, so one set of business activities is primarily taken care of and won’t be a burden on the franchisee. Their initial investment amount also starts at roughly R500,000, putting it at the more affordable end of the scale.

3@1 Business Centre  

The 3@1 Business Services franchise offers a good opportunity for getting into the business service and communications arena, but it may be a franchise that’s more sensitive to a good location. Being close to a business park, university campus, or business district will make the prospect for this franchise a lot brighter. There are two formats to choose from – an express store that takes up 30-45sqm or a full standalone store using 50-80sqm – depending on what seems most feasible, with its investment amount starting in the region of R700,000.

The Fish & Chip Co

The biggest benefit of opening a Fish & Chip Co franchise is that they offer a well-rounded amount of initial and ongoing training to assist franchises in getting off the ground and maintaining good operations. They give a compulsory 5-day training program that covers management skills, stock control, marketing, and staffing, and they’re also assisted by dedicated franchise managers that facilitate communications between the franchises and the franchisor. The initial investment is a on the higher side of our criteria, though, coming in at R850,000 on average.

If you’re thinking of opening up a franchise have a look at the options we’ve listed and see if they’re opening branches near you in the near future!