Franchising July 2026

FRANCHISING JUNE 2026

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Picasso Headline, A proud division of Arena Holdings (Pty) Ltd, Hill on Empire, 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg, 2193 PO Box 12500, Mill Street, Cape Town, 8010 www.businessmediamags.co.za EDITORIAL Editor: Anthony Sharpe Content Manager: Raina Julies rainaj@picasso.co.za Content Co-ordinator: Vanessa Payne Contributors: Trevor Crighton, Larry Hodes, Vukani Magubane, Rodney Weidemann, Lisa Witepski Copy Editor: Brenda Bryden DESIGN Head of Design: Jayne Macé-Ferguson Senior Designer: Mfundo Archie Ndzo Project Designer: Annie Fraser DIGITAL Online Editor: Stacey Visser vissers@businessmediamags.co.za SALES Project Manager: Gavin Payne GavinP@Picasso | +21 469 2477 +27 74 0341 9774 Sales: Stephen Crawford, Frank Simons

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FROM THE EDITOR

A GROWTH ENGINE

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Speaking of he franchising model represents solar, franchises are a powerful growth engine popping up to serve the for businesses worldwide. growing appetite Growth, we would probably for sophisticated all agree, is a good thing. solar installations However, what happens when a and energy franchise outgrows its management management architecture, when simply systems. And on the auditing, enforcing standards and subject of automation, reporting performance are no you can’t swing a cat longer enough? without hitting a story about That’s the question posed artificial intelligence, so put down

by Franchise Association of Anthony Sharpe that cat and check out our story about South Africa board member how the technology is aiding in predictive Larry Hodes in this issue of Franchising, inventory management and hyperlocal marketing. in a fascinating look at the evolving role of the Technology is also facilitating the explosive area manager – from operational compliance growth in education franchises, from coding monitor to leadership coach, strategic advisor classes and rock n’ roll lessons to social franchising and performance partner. These managers networks providing employment to women in represent the interface between the franchisor vulnerable communities. and franchisee, and the stronger that relationship, And, coming back to that growth engine, we the better the performance. look at how pivoting to a franchise model helped Of course, no business can perform without rescue a South Africa retailer from business rescue. finance, so we unpack the burgeoning diversity Now that is unequivocally a good thing. of funding options for small and medium enterprises, from solar energy packages to turnover-based solutions and automated working Anthony Sharpe capital approvals.

Editor

CONTENTS 4

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LEADERSHIP Franchise growth is creating a leadership crisis for which few brands are prepared.

10 FINANCE Creative solutions are helping entrepreneurs enter franchising and build resilience.

12 ENERGY Solar energy installation franchises are feeding South Africa’s growing appetite for energy independence.

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No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. FRANCHISING is published by Picasso Headline.

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15 AI AND AUTOMATION Artificial intelligence is transforming stock management and marketing even for small businesses.

17 EDUCATION A variety of franchises are helping to plug the gaps in the country’s education system.

20 BUSINESS RESCUE How pivoting to the franchise model helped rescue a major retailer from financial distress.

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LEADERSHIP

Franchise growth is creating a leadership crisis few brands are prepared for, writes LARRY HODES, CEO of Grow Franchise & Retail and board member of the Franchise Association of South Africa

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ew franchising stores are opening, networks are expanding, and retail, restaurants, health, fitness and services are growing across every category. Yet behind that momentum, a quiet crisis is unfolding within many of these organisations, one that few executives are willing to discuss publicly.

The greatest threat to franchise growth today is leadership – specifically, its absence at levels where it matters most.

For years, franchising has been celebrated as one of the world’s most scalable business models: replicate the system, expand the footprint, protect the standards. The logic is sound and, in the early stages of growth, it works. When a network is small, founders are accessible, problems are solved quickly, culture spreads naturally through daily interaction and the informal structures that hold everything together are sufficient.

That changes when you own around 15 to 30 stores. Suddenly, operational complexity begins to outpace the organisation’s ability to manage it. Maintaining consistency becomes a daily struggle. Franchisee support grows unevenly across the network. Decisions that should be made quickly get delayed. Head offices become reactive, spending more time putting out fires than building the business.

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THE MIDDLE LAYER At the centre of this pressure sits a role that franchising has historically underestimated: the area manager.

Traditionally, franchise systems viewed area managers as operational controllers. Their role was to conduct audits, enforce brand standards, ensure procedures were followed Larry Hodes and report compliance to the head office. In smaller networks, that approach was serviceable. In a growing, multisite operation, it is no longer sufficient.

The role has changed fundamentally, even though many job descriptions have not.

Today, the strongest area managers are not inspectors; they are commercial operators who understand how a business generates profit.

They are leadership coaches who develop the people running stores, rather than merely evaluating them. They are strategic advisors who help a franchisee navigate a difficult trading period, interpret their own financial data and make better decisions. They are partners in performance, not enforcers of policy.

The gap between that expectation and the reality inside many franchise networks

SCALING LEADERSHIP Mature franchise systems understand this. The questions they ask about store performance reflect a fundamentally different philosophy.

Rather than asking whether the audit was completed and the checklist followed, they ask whether the store is profitable, the franchisee is financially sustainable, the customer experience is genuinely improving and the people leading the store can grow further. That shift, from operational policing to commercial leadership, is where franchise systems either evolve into something durable or begin to plateau under the weight of their own expansion.

The temptation is to frame this as a training problem, something that can be resolved with better workshops or more detailed manuals – but that misses the deeper issue. Many franchise brands are facing a failure of leadership architecture. They are trying to scale complex, multiregional businesses using management structures designed for organisations a fraction of their current size.

The franchise brands that define the next decade will not necessarily be those that grew fastest. They will be the ones that built strong leadership from the inside out, invested in developing their people before the cracks became crises and understood early on that a growing network without growing leadership is not an asset; it is a liability waiting to surface.

IMAGES: SUPPLIED/ PRESSMASTER/WWW.123RF.COM

LEADING THROUGH GROWTH

is significant. Area managers in large systems are routinely responsible for regions generating hundreds of millions of rand in turnover – yet many have never been formally developed beyond operational compliance. They know the procedures and checklists, but understanding commercial leadership, interpreting financial performance and building others’ capabilities are entirely different skills, and those gaps are felt directly by franchisees on the ground.

This matters because franchisees do not experience the franchisor through the operations manual, but through the person who shows up to support them. In many networks, the franchisee’s entire perception of the brand, its values, its leadership and its commitment to their success is formed through the relationship with their area manager. When that relationship is weak, the cost is invisible on paper but real in performance.

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An iconic and bold Mochachos store presence, bringing flame-grilled flavour to local communities.

BRINGING THE FIESTA TO SOUTH AFRICA MOCHACHOS is a flame-grilled franchise built on flavour, family and opportunity, bringing the flame-grilled flavour to South African customers

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n a fast-moving food landscape where customers are constantly looking for value, convenience and something memorable, Mochachos continues to hold a special place in South Africa’s quick-service restaurant market. It is a brand built on more than just flame-grilled chicken. It is built on flavour, culture, family, quality and the kind of experience that keeps people coming back.

Since opening its first store in Pretoria in 1994, Mochachos has grown into a recognisable South African brand with a unique personality. What began as a bold food concept inspired by Mexican flavours has become a familiar favourite for customers who want meals that are flavoursome, freshly prepared and made with care. The Mochachos concept is centred around Mexican-flavoured, flame-grilled chicken, supported by a broad menu that includes generous chicken burgers, shawarmas, burritos, enchiladas, fajitas, and other flavourful meals that bring variety and excitement to the table, along with a wide range of zesty sauces.

For potential franchisees and investors, Mochachos offers an opportunity to be part

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of a brand that already has a strong identity, an established menu and a loyal customer base. In a competitive market, this matters.

Customers today do not only choose a restaurant based on food alone. They choose brands that feel familiar, trustworthy and enjoyable. They want quality, consistency and a reason to come back. Mochachos has built its name around exactly that.

MOCHACHOS CONTINUES TO HOLD A SPECIAL PLACE IN SOUTH AFRICA’S QUICK-SERVICE RESTAURANT MARKET. FOOD, FLAVOUR AND FAMILY AT THE HEART OF ITS OFFERING At the heart of the brand is its food.

Mochachos is known for its dry-spiced, flame-grilled Mexican chicken, prepared with bold seasoning and cooked to deliver

the smoky, flame-grilled taste customers have come to love. The menu is dynamic, vibrant and packed with flavour. Whether a flame-grilled chicken meal, an oversized burger, a Mexican-inspired favourite or a family-sharing option, the focus remains the same: food that is satisfying, memorable and made with quality.

This food-first approach is one of the reasons Mochachos continues to stand out.

The brand has never been about plain, ordinary fast food. It brings heat, colour and character to the quick-service space. It offers customers a sense of escape through flavour – a little fiesta in the middle of a workday, a family dinner, a quick lunch stop or a weekend takeaway. That experience is part of the brand’s strength.

Mochachos has always carried a strong cultural energy. Its Mexican-inspired identity gives the brand a distinctive look and feel, while its South African roots keep it connected to the local market. It is bold, warm and approachable. The brand speaks to families, students, working professionals, young consumers, loyal regulars and anyone looking for a meal with personality and value-packed portions. This balance between flavour, culture and accessibility is what gives Mochachos broad appeal.

For franchisees, this creates a powerful foundation. A strong franchise opportunity

IN PARTNERSHIP WITH MOCHACHOS

is not only about opening a store; it is about investing in a brand people understand and enjoy. Mochachos gives franchisees the advantage of stepping into a concept that already has customer recognition and a clear position in the market.

Family is a key part of the Mochachos story. From the way meals are shared to the way stores become part of their surrounding communities, the brand naturally lends itself to connection. It is the kind of restaurant where parents can bring their children, friends can meet for a casual meal, and customers can pick up dinner for the whole household.

In many communities, a Mochachos store becomes more than just a place to eat. It becomes a familiar stop, a meeting point and a trusted local favourite.

This is especially important in the South African market, where food is closely connected to lifestyle, community and culture.

Customers want meals that suit their daily lives. They want convenience, but they do not want to compromise on taste. They want value, but they still expect quality. Mochachos sits comfortably in this space by offering bold meals that feel both accessible and special.

STEP RIGHT IN, FRANCHISEES For investors, the quick-service restaurant sector continues to offer opportunity, particularly for brands that can deliver consistency, strong visual appeal, convenient formats and a menu that speaks to different occasions. Mochachos has the benefit of an established brand identity and a product offering that can serve multiple customer Mochachos is known for its zesty, dry-spiced, flame-grilled Mexican chicken and bold flavour.

The Mochachos experience combines vibrant design, warm service and a lively Mexican-inspired brand personality.

needs, from individual meals to family occasions and group orders.

The opportunity is also supported by wider market trends. According to a report from the Franchise Association of South Africa, the country’s franchise industry reached an estimated turnover of R999-billion in 2023, reflecting a 36 per cent increase from 2019.

The same report notes that franchising represents around 15 per cent of South Africa’s gross domestic product, highlighting the important role the sector continues to play in economic activity, business ownership and job creation.

MOCHACHOS REMAINS TRUE TO WHAT MADE IT RECOGNISABLE IN THE FIRST PLACE: FLAME-GRILLED CHICKEN, MEXICAN-INSPIRED FLAVOUR AND A FESTIVE BRAND SPIRIT. The food and takeaway category remains especially relevant within this environment.

Statistics South Africa reported that in January 2025, takeaway and fast-food outlets were the main positive contributor to food and beverage income growth, increasing by 9.3 per cent yearon-year. For potential franchisees, this points to continued demand for convenient, trusted and accessible food brands that can serve customers across multiple occasions.

The brand’s store experience is another important part of its appeal. Mochachos is not a quiet or forgettable brand. It is energetic, colourful and full of personality.

The visual language of the brand supports the food experience: flame-grilled preparation, Mexican-inspired cues, bold colours and a sense of warmth. This helps create an environment that is both casual and memorable. For franchisees, this kind of brand presence is valuable as it makes the store easier to recognise and market and easier for customers to connect with. >

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Generous portions, bold sauces and flavour-packed meals remain at the heart of the Mochachos menu.

Beyond the food and visual identity, franchisees also benefit from being part of a larger system. Mochachos understands that successful franchising requires more than a good menu. It requires training, support, operational guidance and a clear understanding of how to run a restaurant within the brand’s standards. The company places importance on giving franchisees the tools and support needed to operate within the Mochachos system, while still allowing each store to serve its own local community.

MOCHACHOS OFFERS A BRAND WITH ESTABLISHED RECOGNITION, A DISTINCTIVE PRODUCT, OPERATIONAL EXPERIENCE AND A CLEAR PERSONALITY.

This support structure is important for new franchisees, especially those entering the food and hospitality space for the first time. Running a restaurant requires attention to detail, discipline and consistency. From food preparation and customer service to stock management, staff training and local marketing, every part of the operation matters.

A franchise model helps provide structure and guidance, reducing the uncertainty that often comes with starting a business from scratch.

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Franchisees are supported through brand systems, operational guidance and an ongoing commitment to quality.

KEEPING THE BRAND TOP OF MIND Mochachos understands that marketing plays a major role in brand growth. In today’s market, customers engage with brands across multiple platforms before they even walk into a store. Social media, digital content, promotions, local store marketing and community activity all play a part in keeping a brand visible and relevant.

The Mochachos brand is well-suited to this space because its food is visually appealing, its personality lively, and its messaging naturally connects with fun, flavour and shared experiences.

This gives franchisees access to a brand that can be marketed in many different ways.

From flame-grilled food visuals and family meal promotions to store openings, competitions and community campaigns, Mochachos has the flexibility to create excitement at both national and local levels. The brand can speak to customers online, in-store and through local marketing initiatives, helping franchisees drive awareness and foot traffic.

Another strength of Mochachos is its ability to appeal across generations. Younger consumers are drawn to bold flavours, social media-friendly food, convenience and value. Families are drawn to trusted meals, variety and portions that can work for sharing. Working professionals look for quick, satisfying options that do not feel bland or repetitive. Mochachos serves all of these customers without losing its core identity.

That identity is one of the brand’s greatest assets. Mochachos remains true to what made it recognisable in the first

place: flame-grilled chicken, Mexican-inspired flavour and a festive brand spirit. At the same time, the business continues to evolve with the market. The customer experience, digital presence, store look and menu communication all form part of how the brand stays current while protecting its heritage.

For a franchisee, this balance is important.

Investors want to know that a brand has history, but they also want to know that it is not standing still. Mochachos carries both. It has been part of the South African food market for decades, yet it continues to speak to modern consumers through bold food, refreshed brand energy and strong customer engagement.

COMMUNITY AND CUSTOMER IMPACT The opportunity is not only financial. For many franchisees, owning a restaurant is also about building something meaningful.

It is about creating employment, serving a community and becoming part of people’s everyday routines. A successful store can become a local landmark, especially when it is backed by good service, consistent food and a franchisee who understands the area.

Mochachos gives franchisees the opportunity to bring a recognised brand into communities where there is demand for quality, convenient and flavourful food.

This community impact is an important part of the wider franchise model. FASA notes that the South African franchise sector includes 727 franchise systems, 68 463 franchisees and employs approximately 500 000 people.

These figures show how franchising can support entrepreneurship, job creation and

IN PARTNERSHIP WITH MOCHACHOS

That sense of welcome is also reflected in the brand’s family positioning. Mochachos is not built around one narrow occasion.

It works for lunch, dinner, takeaway, casual dining, family meals, office orders and weekend cravings. This versatility helps franchisees reach a wider customer base and participate in different sales occasions throughout the week.

A FRANCHISE OPPORTUNITY THAT BRINGS THE HEAT

local economic participation across different sectors and communities.

Quality remains central to the brand promise. In food service, customers quickly notice when quality slips. Consistency is what builds trust. Mochachos’ focus on preparation, seasoning and menu variety helps ensure that the customer knows what to expect when they visit. This trust is what turns first-time customers into regulars. It is also what gives franchisees the confidence to build a customer base over time.

Culture is equally important. Mochachos has a sense of humour, energy and warmth.

It invites customers into the fiesta. This makes the brand more memorable and gives it emotional appeal. Customers remember how a brand makes them feel, and Mochachos aims to create a feeling of enjoyment, flavour and welcome.

For potential investors looking at the franchising space, Mochachos offers a brand with established recognition, a distinctive product, operational experience and a clear personality. It is a franchise opportunity for people who are passionate about food, service and community. It is suited to those who want to be hands-on, understand the importance of consistency and are excited by the idea of growing a business within a recognised South African brand.

The investment journey begins with understanding the right location, the market potential and the brand’s requirements. As with any restaurant franchise, site selection, store setup and operational readiness are key. Mochachos notes that franchise investment can vary depending on the size and condition of the premises, with accurate costing determined once the relevant team has assessed the site and requirements.

This practical approach helps ensure potential franchisees receive guidance based on the specific opportunity rather than a one-size-fits-all assumption.

Mochachos is affiliated with the Franchise Association of Southern Africa and has adopted its Code of Ethics and Business Practices. For potential franchisees, this reinforces the importance of professional

IMAGES: SUPPLIED

Mochachos is built around food moments that bring people together, from family dinners to casual meals with friends.

franchising standards and responsible business conduct. In a sector where trust and structure matter, this affiliation adds credibility to the franchise journey.

Looking ahead, Mochachos remains focused on growing its footprint while staying true to the qualities that built the brand: flame-grilled flavour, quality meals, warm service, bold personality and a sense of family. The brand continues to offer an experience that feels proudly familiar but never boring. It is this combination of consistency and energy that gives Mochachos its lasting appeal.

From its first store in Pretoria in 1994, Mochachos has grown from a local South African concept into a brand with a wider footprint. The brand’s official franchise information notes that Mochachos has enjoyed the patronage of South Africans nationally from a broad range of demographic and socioeconomic sectors for more than 25 years.

For the right franchisee, Mochachos is more than a restaurant. It is a chance to own a business that brings people together through food. It is an opportunity to serve meals full of flavour, build relationships with local customers and become part of a brand that has been feeding South Africans for decades.

In a market where customers are looking for brands they can trust, enjoy and return to, Mochachos continues to bring the heat. For franchisees and investors ready to be part of a flavour-filled journey, the fiesta is waiting.

VISIT WEBSITE SUBMIT A FRANCHISE ENQUIRY THROUGH THE MOCHACHOS WEBSITE:

For more information: (011) 450-2145/6 https://www.mochachos.com/ franchise-information-request/

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FINANCE

ENERGY-SMART FINANCING While interest is growing, sophisticated energy-related financing remains limited, writes ANTHONY SHARPE

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usinesses across South Africa have spent billions on solar and battery installations in an effort to ward off the stifling effects of load shedding and ever-increasing energy tariffs.

That investment obviously pays off in terms of operational reliability, but financial institutions increasingly view off-grid or partly off-grid franchises as an asset, too.

“These measures enhance operational resilience, reduce exposure to load-shedding-related business interruption, and support more stable and predictable cash flows,” says James Nobel, executive for wholesale, retail and franchise business at Absa. “This is particularly important when assessing the repayment of finance for a franchise acquisition, revamp or similar investment.”

FNB franchise specialist Henk Botha says energy resilience is increasingly a key risk mitigant in the South African operating environment. “Franchise applicants that incorporate solar and battery energy storage systems into their turnkey setups demonstrate improved operational continuity and reduced exposure to load-shedding disruptions. As a result, these businesses may benefit from enhanced credit outcomes, as their lower operational risk positively influences the bank’s credit assessment.” He notes, however, that different applications hold different risks, from additional operational risk to financial risk, for example. “Thus, although the energy provision lowers the risk, it is not the only factor influencing the outcome of a transaction.”

OWNERSHIP IS KEY

of these solutions, whereas many landlords do not pass on cost savings or permit the installation of such infrastructure, which can limit the risk-mitigating impact.”

Property ownership is also constraining the implementation of alternative funding structures for portfolio-wide energy rollouts, such as green or blended finance, says Noble, despite growing interest among franchisors in these options. “This limits the ability to finalise these structures; as a result, where franchisors can install or add energy infrastructure, the current approach remains the financing of energy solutions at a site-by-site level rather than through aggregated or bond-type funding frameworks.”

A portfolio approach to energy solutions would also unlock the possibility for wheeling power from larger sites to offset consumption at smaller sites within a franchise, which Noble says is conceptually viable and increasingly discussed. “In practice, it remains limited for multiunit franchise owners due to regulatory complexity, municipal wheeling agreements, metering and settlement requirements, grid access and the fact that many sites are leased rather than owned, which complicates approvals and implementation accordingly.

While wheeling may be feasible in specific municipalities or where property ownership and scale allow, most energy solutions are still structured and financed at an individual site level.”

FINANCING RESILIENCE Andre Beck Beck, head of franchising at business and commercial banking South Africa, Standard Bank

Noble notes that ownership of the property plays a key role here. “Franchisees who own their premises are better positioned to realise the benefits

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Andre Beck

“FRANCHISEES WHO OWN THEIR PREMISES ARE BETTER POSITIONED TO REALISE THE BENEFITS OF SOLAR SOLUTIONS, WHEREAS MANY LANDLORDS DO NOT PASS ON COST SAVINGS OR PERMIT THE INSTALLATION OF SUCH INFRASTRUCTURE, WHICH CAN LIMIT THE RISK-MITIGATING IMPACT.” – JAMES NOBLE

Group, says it’s important to balance resilience with not putting cash flow under pressure.

“We finance solar systems using our asset finance facility, which offers better pricing and overall lower costs as it backed by the asset as security, without having to register further bonds. We offer up to one hundred per cent financing (so no cash outlay by the client) and a loan period of up to ten years, which reduces the cash flow pressure on the business.”

He says that in most instances, businesses are cash-flow neutral in year one if not already reflecting savings when the solar costs (loan repayment, insurance and maintenance) are compared to the grid power costs.

Follow: James Noble www.linkedin.com/in/james-noble-64796779 Henk Botha www.linkedin.com/in/henk-botha-2332993aa Andre Beck www.linkedin.com/in/andre-beck-1139681a9

Henk Botha

LOAN-AS-YOU-GO

statements and provides a more accurate, current view of cash flow affordability.”

Transaction data and real-time analysis are enabling a more dynamic type of business lending, writes ANTHONY SHARPE

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ven with a recognised brand name to trade on, business can be unpredictable and, with purse strings being drawn tighter across the country, finance can be difficult to come by, especially for entrepreneurs without glowing credit scores.

The good news for savvy franchisees is that fixed-term loans are being disrupted by flexible repayment structures that adapt to business performance. James Noble of Absa says the bank leverages real-time point-of-sale (POS) data and artificial intelligence (AI)-driven analytics to support more flexible, performance-based repayment structures, particularly for seasonal or high-volume quick-service restaurant franchises. “In parallel, we are engaging with consulting firms around customerHeather Lowe movement and trading-pattern

data to enhance the insights we share with clients, enabling them to understand performance drivers better, and supporting more informed, data-led funding and structuring conversations.”

Heather Lowe, small and medium enterprise development head at FNB, says that integrating with the bank’s merchant or POS solutions enables it to track and monitor sales volumes. “This provides access to a funding vehicle designed to avail working capital calculated according to turnover. Turnover figures also help the bank tailor solutions for more than just working capital needs. This data-driven approach enables quicker, and in some instances automated, working capital approvals, as it reduces reliance on static financial

Follow: Heather Lowe

A SMARTER PICTURE Standard Bank’s head of franchising Andre Beck says the bank’s strategy is to continuously build franchise-specific scoring and sector-risk models per brand, which helps boost decision certainty and speed.

“Instant working capital top-up, digital document verification and the like are becoming the norm. The use of AI differentiators is becoming more important as the bank becomes a strategic advisor based on various data sets, such as merchant and transactional data. This can enhance site visibility analysis, predictive turnover modelling, including seasonality impacts and consumer spending heat maps, to name a few.”

Beck says the franchise team has also created sector-specific intelligence hubs with their own specialists. “These specialists understand margins, operational risks, seasonality, consumer trends and franchise sector benchmarks. The data and their expertise assist with a forward look on lending.”

www.linkedin.com/in/heather-lowe-69a73219

BRIDGING THE OWN-CAPITAL GAP Dedicated funds are helping people from disadvantaged backgrounds break into entrepreneurship. By ANTHONY SHARPE

IMAGES: SUPPLIED

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ntrepreneurship is vital to solving the twin challenges of low economic growth and high unemployment, and the franchising model is a great way to stimulate this, but the majority of South Africans lack the unencumbered capital required to open a franchise.

Absa’s James Noble says that while the franchisor ultimately sets the own-capital requirements based on its franchise model, Absa supports young, black entrepreneurs in bridging the own-capital gap through a combination of targeted enterprise development solutions, including bank-led and government-supported funding initiatives.

“In addition, there are instances where

we collaborate directly with franchisors to develop bespoke funding frameworks that allow for higher funding levels and extended repayment parameters, specifically designed to support the successful entry and growth of young, black entrepreneurs into tier one franchise brands.”

A PARTNERSHIP APPROACH Also helping to plug this gap is the Vumela Fund, co-managed by FNB and Edge Growth, which provides funding to early-stage small to medium enterprises that have struggled to secure it through conventional channels.

“Vumela has funds dedicated to supporting disadvantaged individuals to participate in the franchise space,” says FNB’s Henk Botha. “The funding is nontraditional, patient capital that primarily caters for the requirements of a contribution from the entrepreneur.

A partnership approach is adopted between FNB, Vumela and a franchisor to ensure

a holistic ecosystem of support that extends into nonfinancial support provision.”

Andre Beck of Standard Bank says it’s important for financial institutions to align their strategies with those of businesses. “Our vision is to empower township entrepreneurs build scalable franchise businesses that build communities.

Many township businesses struggle due to limited access to funding, operational support, national supply chains or formal systems. Bank and brand must work jointly to introduce proven business models, training, procurement support, mentorship programmes and mature operational standards.”

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ENERGY

Industrial installation

Residential installation

SELLING SUSTAINABILITY Solar energy installation franchises are growing energy resilience across South Africa, writes TREVOR CRIGHTON

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he National Transmission Company of South Africa estimated that the capacity of behind-the-meter rooftop solar power has increased by more than 5 000MW over the last three years to around 7 600MW. The resultant relief of pressure on the national grid is the reason Eskom has managed to keep the country free from load shedding for over a year – and why the solar photovoltaic (PV) installation business is booming.

is different from what it was during load shedding. “The product requests and reason for buying are different. These days, solar PV installations are driven by simple return on investment calculations and seen as personal empowerment to take control of spiralling energy costs.”

the One Energy name carries real weight, and protecting that name across every franchise territory requires operators who have genuine skin in the game. “ This means that a franchisee’s reputation, livelihood and business equity are tied to every installation they complete and every client referral, continues Kok. “That accountability filters through into every franchise along with the backing, continuity and support of a national head office.”

FOCUS AND TRUST

POWERING COMMUNITIES

Kohn says that oneSolar’s client focus has set them apart as a franchise business.

“Buildings, families, demand patterns and budgets are all different – moreover, customers’ lives change dramatically during CONSIDERED POWER the twenty-year life cycle of a PV system.

Teresa Kok, director at solar energy “We listen first, ask a lot installation franchise One of questions and emphasise Energy, says the demand for that a client gets a return domestic solar PV systems on their investment. Then is still as high as it was at we monitor and support the height of load shedding our systems and modify because that demand them together with our has evolved, rather than clients, based on their diminished. “At the height of changing needs.” load shedding, customers For Kok, One Energy’s were driven by urgency. decision to franchise was As the grid has stabilised, rooted in a clear insight: that urgency has been the solar industry requires replaced by considered, deep technical expertise long-term decision-making. and genuine customer trust Customers are investing to do well. “Franchising in solar strategically to gave us the ability to scale dramatically reduce their without diluting quality or electricity costs and our brand integrity. In an secure their supply.” industry genuinely overrun Wehrner Kohn, founder with fly-by-night operators and owner of oneSolar, 60kW agricultural installation and inexperienced installers, concurs that the demand

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Kohn explains that oneSolar’s franchising model is selling origins – the place a franchise operates from, not territories. “Your point of origin will naturally limit your activity in areas far from your location because it is not profitable to support many systems spread across great distances.” The oneSolar brand is also centred around a collaborative and supportive environment where franchisees help each other with technical competence, experience and installation capacity.

One Energy franchisees also operate as independent business owners within a defined territory, supported by the full weight of the brand. “They build real businesses with their own teams, their own customer relationships and their own stake in their franchise and region’s growth,” explains Kok. “A significant part of what we bring to franchisees is the expertise and infrastructure we’ve built over fifteen years. That due diligence took years to accumulate and franchisees step into that immediately.”

Follow: Wehrner Kohn www.linkedin.com/in/wehrner-kohn-64a5481a Teresa Kok www.linkedin.com/in/teresa-settas-kok-32b65a1

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AI AND AUTOMATION

THE RISE OF

PREDICTIVE RETAIL Artificial intelligence is helping retailers and hospitality businesses predict demand, personalise marketing, reduce waste and improve operational decision-making, writes RODNEY WEIDEMANN

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n many hospitality and retail environments, inventory management has traditionally been reactive. Businesses often only identify issues, such as overstocking, deadstock or stock shortages, after they have already negatively impacted profitability. Artificial Evert Vorster intelligence (AI) is now helping businesses move towards a far more predictive and proactive model.

Dave Sibanda, MD of Lungisa Inventory Management, says some clients are already using AI-driven analysis to review weekly usage trends, historical sales patterns, purchasing behaviour and operational data to better predict upcoming stock requirements and weekly spending needs. “This enables businesses to budget more accurately, reduce unnecessary Dave Sibanda spending, avoid tying up cash flow in deadstock and reduce the likelihood of running out of high-demand items during busy trading periods.”

This is especially important in industries like hospitality and food service, says Sibanda. “Here, margins are often tight, and demand can fluctuate significantly due to weekends, weather conditions, tourism, sporting events, public holidays and local customer trends.”

Perhaps one of the biggest advantages of AI, he continues, is that it reduces reliance on guesswork. “Traditionally, many smaller businesses relied heavily on

manager experience, intuition or spreadsheets when making purchasing decisions. AI helps businesses process significantly larger volumes of operational data much faster and identify trends that may not immediately be visible manually.”

However, Evert Vorster, a director at AI Automated Solutions, cautions that AI can also create risk if badly implemented. Poor data, disconnected systems, wrong assumptions, no human oversight or generic tools that are not aligned with the actual business process can lead to weak recommendations.

“AI should not blindly replace operational judgement. It should support better decision-making by giving earlier warnings, clearer insights and recommended actions.”

AI AND MARKETING Businesses are increasingly turning to technology to facilitate hyperlocal marketing, says Vorster. “A franchise branch in one suburb may serve a completely different customer base from a branch in another area. Weather, traffic, local events, income levels, community habits and buying patterns all affect demand.

“WhatsApp is especially powerful in the South African market because it is immediate, familiar and widely used by customers. When connected properly to customer relationship management or point-of-sale systems, Shopify or loyalty processes, WhatsApp can support reminders, repeat orders, local specials, abandoned cart follow-ups, bookings, customer support, personalised promotions and service updates.”

For businesses, hyperlocal marketing addresses a structural tension, maintaining brand consistency nationally while remaining

locally relevant, explains Lauren Potgieter, South Africa country manager at Infobip. “AI makes this achievable at scale.

For customers, it means less noise and more relevance and value. For organisations, it means marketing spend that works harder because the message reaches the right person with the right offer at the right moment on their preferred channel of communication.”

Lauren Potgieter

CHURN AND BURN Vincent Maher, innovation lead at Digital Solutions Group, says there are also benefits for predictive customer-level analytics. “AI can help you understand – and mitigate – customer churn by looking at the long-term customer behaviour history and predicting which Vincent Maher clients need to be offered promotions or discounts to prevent them from churning away from the business.”

Maher adds that while this technology remains out of reach for smaller players, the shift towards everything-as-a-service will make it more accessible. “This will, in turn, make being an entrepreneur fun again, because the technology can now deliver at the same speed entrepreneurs can develop their ideas.”

Looking ahead, Sibanda believes AI will continue moving beyond simple automation and increasingly become a real-time operational decision-support system for businesses. “Ultimately, businesses that successfully combine inventory intelligence, customer behaviour analysis and predictive operational planning will likely gain a significant competitive advantage over the coming years,” he concludes.

Vincent Maher www.linkedin.com/in/vincentmaher Dave Sibanda www.linkedin.com/in/davesibanda Evert Vorster www.linkedin.com/in/evert-vorster-0231792ba Lauren Potgieter www.linkedin.com/in/laurenpotgieter

FRANCHISING

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TUTOR DOCTOR SA

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ranchising is often described as a route to business ownership.

In South Africa, it is far more than that. It is an economic engine, contributing around 15 per cent to the country’s gross domestic product while supporting entrepreneurship, employment, skills development and access to essential services.

As the Franchise Association of South Africa continues to highlight franchising’s role in national growth, the real opportunity lies in what franchise models make possible: proven systems, local ownership, community impact and businesses built around market need.

Education is one of those needs.

Across South Africa, families are looking for academic support alongside the classroom.

Many teachers support large groups of learners, with limited time for individual attention. Yet every learner is different. Some need help closing learning gaps. Others need confidence, structure, motivation or a different way to make sense of the work.

For the right franchise owner, Tutor Doctor South Africa offers the chance to meet this need through a model that combines purpose with commercial opportunity. Franchisees benefit from a strong support system, proven model and guidance that help them build sustainable, impactful businesses.

Tutor Doctor franchisees build and lead local academic coaching businesses. They connect with families, develop tutor networks, manage service quality and grow a trusted brand, backed by the training, tools, systems and support of an established franchise.

That support matters. South Africa’s tutoring market is large, but often fragmented and transactional. Many providers operate as tutor directories or basic extra-lesson platforms, with limited support beyond the initial match.

TUTOR DOCTOR FRANCHISEES BUILD AND LEAD LOCAL ACADEMIC COACHING BUSINESSES. THEY CONNECT WITH FAMILIES, DEVELOP TUTOR NETWORKS, MANAGE SERVICE QUALITY AND GROW A TRUSTED BRAND.

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THE BUSINESS OF BETTER LEARNING Tutor Doctor’s model combines purpose with commercial opportunity, providing franchisees with the support, training and technology to build a successful business, writes CLIVE ROBINSON, MD of Tutor Doctor SA A DIFFERENT MODEL Tutor Doctor’s model is different.

It is built around assessment, careful matching, academic coaching and ongoing support. Families receive an initial consultation, Clive Robinson a personalised learning plan, a carefully matched academic coach and regular communication. At the heart of this is Tutor Doctor’s “Magical Match”, which considers each learner’s academic needs, personality, learning style, goals and home environment. The aim is to connect the learner with someone who can teach, understand, encourage and guide them.

For franchisees, the model is practical and focused. Tutoring takes place in homes or online, so there is no need for a traditional shopfront or high-overhead premises. There is no stock to carry. Instead, owners can focus on what grows the business: relationships, local brand-building, tutor networks, service quality and family trust.

The model also gives franchisees structure without leaving them to build alone. Owners are supported with training, technology, marketing tools, operational systems and regional guidance.

It is a chance to go into business for yourself, but not by yourself.

Quality control remains central to the Tutor Doctor approach. In South Africa, tutor recruitment and training include credential checks, interviews, practical assessments and annual accreditation, while session reporting and feedback help maintain consistency and accountability.

The strength of this approach is reflected in its impact. Tutor Doctor has supported more than 200 000 students globally. In South Africa, that includes more than 20 000 learners

since 2017. Locally, the brand works with about 2 000 private tutors and continues growing its franchise footprint.

South Africa has also become one of Tutor Doctor’s strongest-performing markets, with 12 active franchisees, more than 20 per cent annual revenue growth sustained over multiple years, and close to 60 000 hours of academic support delivered in 2024 alone. These figures are not income projections; they show the relevance of the model and demand for personalised education support.

For franchisees, Tutor Doctor is an opportunity to build more than a business. It is a chance to create an asset, serve a growing market, work within a proven system and make a measurable difference in young South Africans’ lives.

That is the business of better learning.

VISIT WEBSITE BECOME A FRANCHISE OWNER I TUTOR DOCTOR SOUTH AFRICA

For more information: 27 62 305 9258 @tutordoctor https://tutordoctor.co.za

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IN PARTNERSHIP WITH

EDUCATION

ACCREDITATION, QUALITY AND REGULATION With limited formal oversight, franchises are building their own systems of quality control, training and accreditation

THE RISE OF EDUCATIONAL FRANCHISES Coding and robotics lessons are expanding learning beyond the classroom, writes VUKANI MAGUBANE

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ducation franchises in coding and robotics are emerging as a way to extend structured learning beyond the classroom and give children deeper exposure to future-focused skills.

Resolute Education originally sold its coding and robotics curriculum to schools, where it was delivered as part of school-based learning programmes reaching more than 200 000 students. The franchising model was introduced recently after Carla van Wyk, COO of Resolute Education Franchising, proposed expanding into franchise after-school enrichment clubs within communities.

The aim was to create a parallel learning system that could reach more learners, deepen engagement beyond the classroom and offer a more advanced curriculum.

Franchise partners operate after-school centres and can also run clubs within schools in their territories.

A key extension of the model is Business in a Box, designed to reach children in rural and township areas, as well as learners in nonfee-paying schools who cannot access or travel to centres. Using portable robotics kits, laptops and structured training, the programme can be delivered directly into schools without dedicated infrastructure.

Follow: Carla van Wyk

The model also creates local employment opportunities by training community-based facilitators to deliver the programme.

COLLABORATE AND LISTEN Centre-based learning allows children from different schools, including homeschool learners, to collaborate, build friendships and access robotics programmes often unavailable in traditional learning environments.

“It’s one thing having a sales team at head office,” says van Wyk, but it’s very different when you have franchisees on the ground who are passionate about kids, education and making a difference in their communities.”

She compares the model to other enrichment pathways. “It’s a bit like swimming or cricket. If a child shows interest, they often get extra coaching outside of school.

We wanted to create that same pathway for coding and robotics.”

Van Wyk says Resolute’s curriculum is designed by engineers for what she describes as “future engineers”, with programmes structured across novice, apprentice and advanced levels. The franchise model is still in early rollout, with three South African centres operating and seven more in development.

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s education franchising expands, questions around quality assurance and regulation are becoming increasingly important. Unlike formal schooling systems governed by bodies such as Umalusi, supplementary education franchises operate outside formal accreditation frameworks.

Instead, quality is maintained through internal systems, franchise-led governance and standardised training processes, often reinforced by external benchmarking and international certification partnerships.

For Tutor Doctor South Africa, consistency across franchises is central to the model. CEO and master franchisor Clive Robinson says the absence of a single governing body places responsibility on providers to self-regulate. “There is no governing body ensuring standards across academic support systems in the country. We each have our own high standards, but no one is regulating quality or delivery across the sector.”

STEP BY STEP, AGAIN AND AGAIN Tutor Doctor uses a structured, 10-step tutor accreditation process that includes interviews, personality assessments, curriculum evaluations and training requirements. Tutors are also re-accredited annually.

“Our recruitment process ensures only high-quality tutors are accredited,” Robinson says.

“Only thirty per cent of the candidates make it and end up accredited.”

The franchise places strong emphasis on matching tutors to students based not only on academic needs, but also on personality fit and learning style. Parents undergo detailed consultation sessions before tutors are assigned.

Alongside tutoring franchises, digital learning providers such as Logiscool emphasise international benchmarking as part of quality assurance. Its curriculum is externally evaluated against global digital education standards and supported by structured certification pathways in programming languages such as Python and Java.

The growth in supplementary education reflects increasing pressure within mainstream schooling systems. In the absence of central regulation, education franchises rely on brand reputation, measurable outcomes, structured training systems, and external benchmarking to build trust with parents.

Follow: Clive Robinson www.linkedin.com/in/ cliverobinsontutordoctorsa

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BUSINESS RESCUE

FRANCHISING FUELS BUSINESS RECOVERY Although no silver bullet, franchising may well be a lifeline for struggling businesses in distress. By LISA WITEPSKI “It’s always difficult to turn a company around, but when you adopt a franchising model, funds become available to pay off debtors,” Benadie points out.

He adds that brands enjoy other benefits, too: for instance, because franchisees operate in different geographic areas, they can build a sizeable footprint.

This contributes to brand reputation. Franchisees, moreover, enjoy lower operating costs because franchises typically operate on a leaner structure.

loyalty and helps build a sustainable customer base, contributing to the company’s growth.

A SUCCESS STORY

Henk du Plessis of Edublox has found this to be true. He explains that the company decided SPREADING THE LOAD to transition from Koos Benadie, director of its original closed corporate disputes and corporation model to insolvency at Barnard franchise ownership in Attorneys, is not surprised 2009, not because of that West Pack decided Henk du Plessis financial duress, but to embrace franchising as as a means to control a route out of its financial SKIN IN THE GAME quality, take ownership of woes. “Business rescue Fred Makgato, CEO of the intellectual property and create was introduced as a means Franchising Association additional revenue streams. to help companies facing of South Africa, has his Franchising has also helped the financial pressure return to own theories about why company grow: du Plessis reports that health, so they don’t have to companies that have moved Koos Benadie the company now has 30 franchisees be liquidated. In the case of from corporate ownership across South Africa and Namibia, and a company like West Pack, to franchising enjoy greater sales revenue has increased that financial stress is exacerbated because success. “One of our from R1.8-million in 2009 there are a number of branches countrywide, members tells the story to R25-million across all all requiring leases, employees and capital.” about a branch manager who franchises. Moreover, became a franchisee. From more than 100 jobs have that moment on, he could be been created. found in overalls, sweeping FRANCHISEES ARE TYPICALLY For Makgato, this is out his store himself. When the strongest argument the franchisor asked why he INVESTED IN THEIR in favour of franchising. had never put in as much COMMUNITIES AND AWARE There are many businesses effort as a branch manager, in South Africa currently he replied that owning a OF THE ISSUES FACING THEM. operating more than one store is different to managing THEIR WILLINGNESS TO FIND branch, but have not yet one. He was determined to SOLUTIONS ENGENDERS considered franchising, earn a good return on his Fred Makgato possibly because they need investment and would put in LOYALTY AND HELPS BUILD A more education about the the necessary effort.”

SUSTAINABLE CUSTOMER BASE. model. “It is something we urge them to Makgato points to another benefit of consider, because franchising is one of franchisee involvement: franchisees are the most powerful tools we have to grow typically invested in their communities businesses, the economy and employment,” and aware of the issues facing them. Their he concludes. willingness to find solutions engenders Franchising helps companies escape these associated expenses because each franchisee funds their own branch. Moreover, they Follow: Koos Benadie www.linkedin.com/in/koos-benadie-24109b37 inject working capital through their upfront Henk du Plessis www.linkedin.com/in/henk-du-plessis-a95a384 Fred Makgato www.linkedin.com/in/freddy-makgato-60ba5b219 membership fee and ongoing royalties.

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hen corporate ownership does not deliver hoped-for results, business owners still have options.

This has been the case for West Pack Lifestyle, which entered business rescue in 2024, a consequence of aggressive growth that put cash flows under strain. However, by October 2025, the brand was back in business, supported by a franchising structure introduced by a new investor. Although the brand had welcomed franchisees as early as 2013, the new model saw the establishment of 40 owner-operated outlets nationwide, with stores in the West Pack Corporate Division also set to become franchise-owned.

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