Expert warns franchising is not easy money

Sweat, long hours still need to be put in

- By Boitumelo Kgobotlo

Franchising may be viewed as a secure way to start a business, but it is not a passive income or an easy retirement option, said FNB head of franchising Morne Cronje.

South Africa has a growing franchise sector that spans fast food, retail, automotive services and education, but Cronje believes venturing into this does not offer automatic success.

He emphasised that buying into a franchise often requires significant upfront capital, but the cash flow challenges do not end there. Cronje said many new owners underestimate the gap between what they expect to earn and what they can realistically draw from the business.