For those looking for a low-risk way to start a business in a volatile market, purchasing a franchise can be an ideal option.
It allows the owner to benefit from the support system of the franchisor as well as enjoy greater success without taking on all the uncertainties associated with establishing a new venture.
This is why more and more people are choosing franchises over traditional methods of starting their own businesses.
Now that you have decided to take advantage of this great opportunity, it’s time to choose one among many – but which ones offer you solid profits?
Here we provide you with a list of the 20 most profitable franchise businesses in South Africa so that you can make an informed decision when it comes to your investment.
With these suggestions, you can easily find one that best suits your financial goals and personal preferences.
Before we get into details, let’s have a quick glance at what is franchise business:
What Is A Franchise Business?
A franchise model is a popular business strategy in which an established company – known as the franchisor – grants permission to independent entrepreneurs – known as franchisees – to use their brand name, products and services.
A franchisee pays a royalty or other fee for this privilege but gains access to the distinct advantages of being associated with a well-known and trusted corporation.
This arrangement gives both parties powerful incentives; the franchisor gets additional distribution channels while the franchisee receives valuable branding opportunities, marketing support and source materials that they can utilize as they run their own separate branch of the overall business.
With franchising, local businesses are able to benefit from flanking themselves with an established corporate partner’s reputation and experience while also having control over their daily operations.
List of The Most Profitable Franchises in South Africa
1. Chicken Licken
Established in South Africa, Chicken Licken has risen to become one of the most popular fast-food franchises in the country.
This impressive feat makes them the second largest fast-food provider, behind only American brands.
Even more remarkable is that Chicken Licken is not owned by an American company – instead, they have become the world’s biggest fried chicken franchise without any overseas influence.
As a result of their longevity and success, this restaurant has developed quite a loyal following offering up classic dishes like their renowned fried chicken.
2. Nkukhu Box
Nkukhu Box is a beloved South African restaurant chain that serves up the familiar, flavorful dishes one would expect to find in the townships of eKasi.
Their speciality is their delicious and juicy grilled chicken, which arrives with all the flavorful accompaniments usually associated with eKasi cuisine.
Nkukhu Box has established itself as an important part of the diverse food culture that can be found in this vibrant region, and they have delighted customers for years with its high-quality fare.
3. Richfield Graduate Institute Of Technology
Established in 1998, Richfield Graduate Institute of Technology (Pty) Ltd began as a small Computer Training Centre located in Tongaat, South Africa.
Over the years, it has expanded to become a nationally recognized institution with branches spanning 70 locations throughout the country.
Starting from humble beginnings as PC Training and Business College, Richfield Graduate has grown into an organization that provides innovative access to advanced technology-based education for its students.
4. Car Service City
Car Service City is a renowned and nationally acclaimed network of garages that offers maintenance and repair services for cars, pickups and SUVs of various makes and models.
With more than 60 outlets strategically situated across the country, Car Service City pride itself on its commitment to customer convenience by providing cost-effective repairs in convenient locations.
Their core philosophy is focused on creating an unparalleled service experience for all their customers – no matter what type of vehicle they own.
5. Pick n Pay
Founded in 1967 in the United Kingdom, Pick n Pay is a classic family-run business that has since grown into a multinational corporation with branches across Africa and its territories.
Specifically, customers can find Pick n Pay outlets in South Africa, Namibia, Botswana, Zambia, Mozambique, Mauritius, Swaziland and Lesotho.
To further solidify its reach on the continent, Pick n Pay holds a majority stake (49%) of the Zimbabwean grocery chain TM Supermarkets making it a wholly owned subsidiary of its parent company.
With an emphasis on food items like fresh produce and meat as well as apparel options and miscellaneous merchandise; Pick n Pay is your go-to destination for all your grocery needs.
6. Yami Rib and Burger
Yami Rib and Burger is a stylish restaurant franchise that caters to young people seeking a place for social gatherings.
With its drool-worthy ribs and juicy hamburgers, this anytime eatery has gained immense popularity over the years.
Featuring innovative dishes made from the finest ingredients, Yami Rib and Burger offers an extensive variety of wondrously delicious entrees that are sure to tantalize your taste buds.
The Shoprite Group of Companies is the largest food retail and supermarket chain in Africa.
With more than 2,934 shops scattered throughout 15 countries on the African continent and Indian Ocean Islands, this company is truly a multinational powerhouse.
Being publicly traded on the Johannesburg Stock Exchange makes it even more impressive, as does its headquarters located in both Cape Town, South Africa, and London, United Kingdom.
Inside their vast network of stores, one can find various subsidiaries such as Checkers and Computicket (Pty) Ltd., offering customers an array of products to choose from.
With its expansive reach across multiple markets and countries, the Shoprite Group is a force to be reckoned with in African food retailing.
Chesanyama is an esteemed meat-processing company that operates primarily in Japan, bringing the classic butcher shop experience directly to customers’ doorsteps.
With a selection of only the highest quality A-grade meats available both raw and flame-grilled, Chesanyama has cultivated its own secret traditional pap sauce and freshly-cut chips that can accompany any order.
Customers have the convenience of ordering over the phone or through the internet for delivery or pick up.
This easy solution to obtaining aged prime cuts of meat makes Chesanyama quite popular among Japanese consumers seeking premium flavour experiences they can rely on again and again.
The MiniChess franchise in South Africa has helped to revolutionize the way school-age children learn.
Their program is the result of years of teaching chess to young learners, aiming to stimulate the minds of those aged 5 to 9.
Through these classes, children gain valuable skills such as problem-solving, critical thinking and more that are applicable beyond just chess.
After implementation in various schools across South Africa, this highly successful program has made an impression and left a lasting impact on countless students.
With MiniChess by their side, these children have been given unique opportunities for development and growth that will benefit them for life.
Rocomamas is a restaurant franchise with a vibrant, youthful atmosphere that makes it stand out from the typical fast-food chain.
The open kitchen allows patrons to watch their food being made and enjoy the tantalizing aromas of freshly cooked burgers, fries, and other classic favourites.
But the unique interior decor truly sets Rocomamas apart, mixing modern design elements with loud music that appeals to rock and roll fans young and old alike.
Founded in July 2014, this popular eatery has quickly become a favourite among more adventurous types looking for an alternative to ordinary fast-food restaurants.
11. Hot Dog Café
Hot Dog Café is a successful restaurant chain owned by a major international corporation.
Customers can satisfy their cravings for delicious meals whether they are dining in or ordering takeout.
First established in 1998, Hot Dog Café has since become an iconic part of the culinary landscape and continues to offer signature dishes that have won over diners from all walks of life.
With its broad selection of tasty options like classic hot dogs, burgers, fries and more, guests are sure to find something on the menu that satisfies their appetite every time they visit this beloved eatery.
SPAR is an internationally successful franchise brand that was established over 80 years ago in the Netherlands.
Initially named DESPAIR, the corporation has made a home for itself across 48 countries with 12,770 stores and counting.
It is especially popular in South Africa where it has become a well-known household name since first entering the market.
Each store within SPAR’s network of food retail businesses is independently owned and operated.
Thus, this multinational symbol of success offers customers around the world access to top-quality goods under one unified banner.
At Midas, vehicle owners can find everything they need for car maintenance and repair.
As a retailer dedicated to automotive needs and services, this company provides an extensive selection of parts and accessories ranging from motor components like spark plugs or engine oils to home and garden items.
With more than 300 franchises in South Africa, Botswana, the Lesotho Republic, Mozambique, Namibia, Swaziland and Zimbabwe, customers have plenty of options at their fingertips when it comes to service locations around these countries.
Hi-Q is an automotive service provider specialising in tyres. With years of experience and outstanding customer service, they have been recognised as South Africa’s top tyre retail outlet multiple times.
They provide a diverse range of services to automobile owners including wheel alignment, brake repairs, suspension checks and tyre fitting.
Thanks to their skilled technicians who utilise the latest diagnostic equipment, Hi-Q ensures that customers can drive safely with peace of mind knowing their car is well taken care of.
Nando’s, the renowned global restaurant chain, began its journey in Portugal.
The savoury and unique flavour of their signature dishes and sauces, crafted using an array of spices and peppers, has made Nando’s a popular choice for diners all over the globe.
In addition to their restaurants and menu items, it is also possible to find Nando’s products in grocery stores worldwide.
This availability allows patrons from any location to experience the taste sensations that make this business so successful.
Placecol is more than just a salon and spa; it’s a place where clients can find beauty, wellness, improvement and empowerment.
Owned by the Imbalie Beauty group, Placecol specializes in providing treatments tailored to each individual client that offer not only aesthetic improvements but also give their self-esteem a boost.
With services such as facials, waxing, massages and manicures, Placecol helps customers look and feel better from head to toe.
Furthermore, they provide complimentary skincare consultations with qualified experts who strive to meet the needs of each customer.
Not only does Placecol make customers look great on the outside but they also empower them from within; allowing them to feel confident knowing that they are at their most beautiful best.
17. Candi & Co
Candi & Co is a revolutionary South African hair salon that provides high-quality hair-care services and products at an affordable price for people of all ethnic backgrounds.
Their mission to break the barriers in the beauty industry has made them the first ethnic hair salon in their country, focused on creating inclusive experiences with specialized treatments and tailored solutions specifically designed to enrich, maintain and enhance various types of ethnic hair textures.
With their commitment to customer satisfaction, Candi & Co has become a benchmark for accessible and beautiful services that are sure to elevate any look.
Sorbet is a renowned beauty establishment providing an extensive selection of lavish treatments all throughout South Africa.
As one of the leading beauty therapy hubs in the country, Sorbet boasts over 200 locations for customers to choose from.
Whether you’re looking for a soothing manicure, pedicure, or facial – or if you want to experience an indulging massage – Sorbet is guaranteed to provide an unforgettable spa day with its wide range of services and luxurious amenities.
Since its establishment, Steers has become one of the most recognizable quick-service restaurants in South Africa.
They are popular for their proudly homemade flame-grilled burgers, crafted with 100 per cent pure beef and served alongside their renowned handcrafted potato chips.
Their menu also offers other delectable dishes, ranging from chicken burgers to ribs and all the way to milkshakes and ice cream – perfect for those looking for a mouthwatering treat!
20. Food Lover’s Market
Food Lover’s Market is a grocery store that offers an expansive selection of freshly-harvested, nutrient-packed produce for health-minded shoppers.
From succulent strawberries and sweet apples to juicy oranges and crisp cucumbers, the shelves are stocked with an array of vibrant fruits and vegetables perfect for creating delicious, nutritious meals.
Everything has been hand-picked by expert growers to make sure only the freshest, most flavorful options make it onto the shelves.
In addition to these nutrient-dense foods, Food Lover’s Market also carries a variety of low-calorie snacks like energy bars and dried fruit as well as organic dairy products such as skim milk and yoghurt.
By shopping at Food Lover’s Market not only will you have access to healthier food choices but you’ll also have peace of mind knowing that each item has been carefully inspected before going on sale.