Want to be a McDonald’s franchisee? You need R2 million (and a burger obsession)

There are about 757 franchises/ franchise concepts in South Africa, said Nedbank National Franchise Manager Laurette Pienaar at the 2016 Nedbank Franchise Breakfast.

Food is, according to Pienaar, the largest constituent of South Africa’s franchise-universe.

It is also where Nedbank sees its highest returns.

Bruce Whitfield, famed presenter of The Money Show, hosted the event with McDonald’s South Africa CEO Greg Solomon the guest of honour.

What does it take to be a McDonald’s franchisee?

We franchise where we can share risk and equity.

Greg Solomon, McDonald’s South Africa

You must be customer and burger obsessed, says Solomon.

You also need a minimum of R2 million starting capital for a basic restaurant.

Most franchisees take about four to six years to make back their investments.

About 25% of McDonald’s franchisees are former McDonald’s employees.

The average franchisee owns and operates 2.7 restaurants (the largest one owns nine).

Our franchisees are bankers, bakers, lawyers… and it’s very representative of the demographics of the country.

Greg Solomon, McDonald’s South Africa

Solomon says that franchisees, once selected, go through a training period lasting six to nine months.

The most common mistakes new franchisees make is on the financial side of the business, says Solomon.

They also tend not to wholly understand the respective roles and responsibilities of the franchisor and franchisee.

“Another mistake,” says Solomon, “is that they don’t speak to existing franchisees in the network.”

Where will our brand be in 25 years? I don’t know, but I’ll tell you we’ll be selling the most of something.

Greg Solomon, McDonald’s South Africa

(Need more detail? Watch the video clip below.)

Read More
Money makes the world go 'round (but sex makes it spin!)

Money makes the world go 'round (but sex makes it spin!)

Bruce Whitfield interviews "Dr Eve" Wasserman about her attitude to money (hopes and fears, successes and failures, etc).

The rate of change is rapid (and increasing). But we’ve been here before...

The rate of change is rapid (and increasing). But we’ve been here before...

Bruce Whitfield interviews Prof Ian Goldin, author of “Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance”.

Single best JSE investment right now (by First Avenue Investment Management)

Single best JSE investment right now (by First Avenue Investment Management)

You should make lots of money (while you sleep!) if you invest in this company suggested by Investment Analyst Nadim Mohamed.

Increasing VAT by 1% adds up to R20 billion to fiscus

Increasing VAT by 1% adds up to R20 billion to fiscus

"The average VAT rate in Africa is 15.25% while the global average is 15.6%," says Mazars Tax Consultant Tertius Troost.

Fight erupts over Swartland farmer’s application to allow sand mining

Fight erupts over Swartland farmer’s application to allow sand mining

CapeTalk’s John Maytham interviews Gary Jordan of Jordan Wines in Stellenbosch .

Wanna be a small business owner? Interested in buying a franchise? Read this...

Wanna be a small business owner? Interested in buying a franchise? Read this...

We interview the Chairman of the Franchise Association of South Africa about the ins and outs of franchises.

Popular articles
Eek! Cape Town Mayor Patricia de Lille goes door-to-door to scold water-wasters

Eek! Cape Town Mayor Patricia de Lille goes door-to-door to scold water-wasters

Water wasters, beware! The Cape Town Mayor has had enough of you. And she’ll tell you in your face…

Why the iconic Nokia 3310 is so appealing (and making a comeback!)

Why the iconic Nokia 3310 is so appealing (and making a comeback!)

The most resilient and reliable phone ever made is making a comeback and some are saying it's long overdue. Here's why.

I have suffered backlash from white people (and black people) - Kasi Mlungu

I have suffered backlash from white people (and black people) - Kasi Mlungu

Anita Ronge, famously known as Kasi Mlungu, talks music career, race and township lifestyle with Eusebius McKaiser.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.