To Franchise, or not to Franchise?

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If you’re interested in starting a business, one of the  questions you need to ask yourself is whether you want to start an independent business, or a franchise. And you will need to weigh all the benefits of franchising, but also all the potential risks. There are many advantages of franchising, for both franchisees and franchisors.

The franchisee is the third-party buyer who purchases the brand rights from the franchisor (the owner of the brand). The franchisee pays franchise fees to the franchisor for the rights to use their brand, as well as marketing, etc.

Reasons to consider Franchising:

1. Business Assistance

The franchisee should be provided with everything they need to own and operate the business, including equipment, supplies, and an advertising plan. This knowledge will be essential to run a successful business,  and will make it so much easier than starting a business from scratch.

2. Brand Recognition

A big benefit that franchisees receive when opening a franchise is brand recognition. Franchises are already well-known businesses with established customer bases, and they already know what your business is, what you provide, and what they can expect. On the other hand, if you start a business from scratch, you would have to build your brand and customer base from the ground up, which would take a lot of time and effort.

3. Profits

Most franchises have popular, recognizable brands that bring customers in droves, and franchises tend to see higher profits than independent businesses.

4. Buying Power

One of the major benefits of franchising is the sheer size of the network. A network of franchises has the opportunity to purchase goods at a big discount by buying in bulk. The parent company can use the size of the network to negotiate deals that every franchisee will benefit from. A lower cost of goods lowers the overall operation costs of the franchise.

If you’re operating a standalone business and need to order products or supplies to make your products, you will be  paying more per item because your order will be relatively small in comparison.

5. Lower Risk

Speaking of the franchise network, franchise owners face lower risk than independent business owners, because most franchises are owned by established corporations that have tested and proven the business model of the franchise in multiple markets. This lower risk may also make it easier to access loans, to help you launch your business.


The Famous Bean Café Franchise Group is an independent, fast-growing and truly South African owned coffee café franchise that is looking to further expand nationally and further into Africa. Buying a franchise from us holds many advantages, amongst others the fact that the business model has already been proven with most of the risk and uncertainty eliminated. We launch your business and we offer support and guidance every step of the way. You only have to turn the key to unlock the front door to let the customers in.

Please visit our ‘Become a Franchisee” page to learn more, or make an enquiry into becoming a Famous Bean Cafe franchisee.