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.)


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