Important Facts To Consider Before Buying a Franchise
Category Franchising
Franchising has been called the greatest business model ever invented, and has enabled many thousands of people around the world to become owners of their own business.
South Africa has a thriving franchise sector with over 757 concepts operating through their 35 111 franchise outlets which contributed in excess of 11,6% to the GDP in 2017. The franchise market had a turnover of an estimated R493.19 billion and provided employment to more than 400 000 people according to a 2017 survey commissioned by the Franchise Association of South Africa (FASA). More good news is that, overall, South Africa’s economy grew by a better-than-expected 1,3 percent last year.
It is a known fact that joining a franchise system greatly reduces the risk of failure of a new business, simply because the idea and process of running a particular franchised business has already been proven; systems are in place and one does not have to re-invent the proverbial wheel. It is, however, of utmost importance that one carefully evaluates the reasons for entering a specific sector and partnering with a particular brand.
Understanding your personality type, special professional skills, strengths/weaknesses, likes /dislikes and dominant personal traits will narrow down your search for the type of business venture. Part of your franchise selection should include researching what goods and services are needed, demographics of your area and earning potential.
Once you have identified a franchise that you are interested in, be sure to carefully study the Franchise Disclosure Document supplied by the franchisor, as it should contain important legal, business and financial information. Just having the full picture of start-up costs, on-going expenses and required working capital, will give you a much better insight as to what you could expect should you proceed. Take time to talk to the franchisor’s representative as well as to existing franchisees to evaluate whether you feel at home with their specific business culture and ask questions about franchisor’s support, training, profitability of their ventures and overall satisfaction. Multi-unit franchisees are usually a positive indication of these factors as successful franchisees want to expand and own more offices, based on the winning formula.
Choose a brand that delivers on its promises in terms of on-going training and coaching, regular communication, support, marketing and continuous innovation. It is all about a track-record of success that stems from the implementation of uncomplicated systems, visual consistency and a passionate pursuit of its mission and longevity.
Such is real estate brand, Huizemark; dubbed a ‘legend in its own time’. Although Huizemark has blown out 56 candles on its birthday cake this January, it keeps evolving, embracing change and re-inventing itself.
This extraordinary company is the first to implement the concept of virtual real estate offices; in fact, the franchise with the highest turnover in 2017 is run with no fixed premises, utilising technology accessible from smart phones and tablets. “Our focus is on the creation of better systems and finding ways to lead our franchisees to a tech-orientated paperless environment, hence improving productivity and ensuring higher profits”, says Andre Hamman, Group C.E.O. Due to continuous innovation and flexibility of various business models offered, franchisees experience immense success. By being affiliated with a strong brand that understands the real estate market, offering proven systems and excellent support, Huizemark franchisees are comfortable in the knowledge that the company provides them with up-to-date industry and legislative knowledge and the very best training available in the real estate field. An e-learning platform has been created which allows agents to comply with the educational requirements wherever they might be in the country.
Huizemark has stood the test of time, enjoys a rich history and believes in fostering long-term beneficial relationships with its franchisees, agents and clients alike. Huizemark is rapidly expanding its national footprint and is looking to expand further afield this year. For a franchise opportunity with a difference, please contact Adrie Barnard at 084 081 3747 or 010 593 0740.
Author: Adrie Barnard, C.O.O. of Huizemark Franchising Group
