How much it costs to open a top fast food franchise in South Africa

Despite the economic downturn, franchising in South Africa has remained resilient and has typically shown positive growth rates, according to Sybrand Bezuidenhout, business development manager for franchise services at the Barclays Africa Group.

Bezuidenhout notes that this is particularly true for the franchising services category, which comprises 27% of the total franchising industry and has a combined turnover on excess of R133 billion per annum.

“Historically, the franchising services sector has shown healthy growth despite challenging economic times,” she said. “All indications are that it will continue to grow and positively contribute to the economy – especially if franchisees focus on providing quality products and top-class customer service.”

Some of the most popular franchise service options in South Africa continue to be fast food restaurants.

These are some of the 7 most popular fast food franchise restaurants in South Africa and how much they cost to franchise.

1. KFC – R6 million
(840 restaurants)

Despite KFC being by far the most popular fast food franchise in South Africa, it is not likely to increase its number of restaurants any time soon.

KFC South Africa brand owner, Yum International, has noted that the company is not currently looking for new franchisees.

However, existing KFC franchisees may elect to sell their businesses, and it is therefore possible to become a new KFC franchisee by purchasing an existing KFC business.

According to the latest franchise data available from KFC, new franchise owners could expect to pay close to R6 million for a new franchise.

With the only option to now buy a franchise from a current owner, perspective franchisees can expect this number to increase or decrease slightly depending on a number of factors such as location and demand.

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