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The Appeal of the Franchise System in Africa
Across Africa, franchising is gaining traction as an accessible path to business ownership. With unemployment rates high in many countries, particularly among young people, this model offers a structured way to step into entrepreneurship. But while many view it as a “safer bet” than starting from scratch, experts caution that franchising is far from effortless.
“Franchising is not a get-rich-quick scheme. It demands hard work, careful planning, and often a shift in lifestyle,” says Morne Cronje, Head of Franchising at First National Bank (FNB).
Why Your Motivation Matters
One of the most common mistakes is entering franchising without a clear personal or financial objective. Entrepreneurs who don’t define their “why” risk choosing the wrong franchise concept or underestimating the capital required.
In Africa, where startup funding is often limited, clarity of purpose becomes even more critical. For example, someone looking for passive income may quickly burn out in a food franchise that requires long working hours and high operational involvement.
Who The System Works Best For
Not everyone is cut out to be a franchisee. The business model suits entrepreneurs who are comfortable following established systems, rather than those who prefer full creative control.
Globally, major brands like McDonald’s, KFC, and Subway thrive on consistency across markets. The same applies in Africa, whether it’s Nando’s in South Africa or Chicken Republic in Nigeria. The ability to maintain brand standards, menu, service quality, and customer experience is often what makes or breaks success.
The Myth of “Flexible Hours”
Many new franchise owners assume they’ll be working standard business hours. In reality, especially in food and retail, franchisees are usually the first to arrive and the last to leave.
A restaurant in Lagos or Nairobi may run late into the night, and weekends or holidays are often peak periods. Unlike a salaried 9-to-5, franchise ownership demands ongoing presence and hands-on management.
Income vs. Expectations
For professionals transitioning into franchising, adjusting income expectations is key. Imagine leaving a job paying ₦2 million monthly (about R40,000) only to earn half that during your first year as a franchise owner.
In addition, costs such as healthcare, retirement savings, and taxes, previously covered by employers, must now be factored in. This financial shift can be a shock for many.
The Illusion of a Busy Store
A store full of customers doesn’t automatically mean profits. Franchise success depends on margins, overheads, and consistent sales volume.
Take fast-food outlets, for example. Rising food prices, extended operating hours, and high rent can eat into margins. What looks like a thriving business from the outside may actually be struggling to break even.
Chicken Licken’s Success Story
South Africa’s Chicken Licken, one of the largest independent fried chicken franchises globally, is a prime example of a Franchise system done right in Africa. Built on consistent branding, affordable pricing, and local flavours, the brand has expanded across the continent.
Its model shows that African-grown franchises can compete with global giants when they combine cultural relevance with operational discipline. Still, franchisees under Chicken Licken must follow strict rules on menu, branding, and quality, highlighting the structured nature of the business.
Global Trends: What Africa Can Learn
Globally, the franchise system has proven resilient even in uncertain economic times. According to the International Franchise Association (IFA), the U.S. franchise sector is projected to contribute over $800 billion to GDP in 2025.
Africa’s franchise sector is still young but rapidly growing. In Kenya and Ghana, for instance, local brands are emerging alongside international players. What sets Africa apart is the need for more affordable entry-level franchise models to make the industry accessible to small and medium entrepreneurs.
Risks and Rewards
The risks of the Franchise business model, including high startup costs, long hours, and thin margins, are real. But so are the rewards. A successful franchise can generate stable income, create jobs, and contribute to local economies.
As Cronje points out, “The franchise business model can be powerful if you approach it with eyes wide open. It requires intent, energy, and the same commitment you’d give to building your own business from scratch.”
Practical Insights for Aspiring Franchisees
If you’re considering entering the franchise sector in Africa, here are three key steps:
- Do your homework: Research the franchise’s financials, support systems, and reputation.
- Assess your lifestyle fit: Be honest about whether you can handle long hours and structured rules.
- Plan your finances: Don’t assume profits from day one; build a cushion for unexpected costs.
The Franchise Business Model as a Pathway, Not a Shortcut
The franchise business model in Africa is on the rise, offering a structured business model that mitigates some of the risks associated with entrepreneurship. But it’s not a retirement plan or a passive income stream; it’s a demanding commitment.
For Africa’s next generation of entrepreneurs, the industry represents both an opportunity and a test of resilience. The model works best when paired with discipline, financial planning, and a clear vision.
Read also: GHIB’s Financing Blueprint aims to Unlock Billions in Lost Export Revenue
