What is a Franchisee?

  • A Franchisee owns a franchise.

What is a franchise?

  • A franchise is a business that uses the same logo, brand and business model as an existing business. For instance:
  • A restaurant like Spur
  • A fast food businesses like Nandos or KFC
  • A service like Postnet, Tiger Wheel & Tyre etc
  • A Franchisee will buy the business model from the holding company. The Franchisee will then be able to share in the benefits of being part of a group.

In most cases, a Franchisee will also have to pay a monthly fee (maybe part of profits) to the holding company. This money is used for brand advertising, product development, market research, packaging updates, etc.

The holding company also assists the Franchisee with ongoing business support and advice.

The Good:

  • The Franchisee is buying into something that has already been tried and tested
  • Business model has already been established
  • Constant business support
  • All the advertising and branding is done by head office
  • What does a Franchisee do?

The Bad:

  • The initial investment could be very expensive
  • Business has to be run within the strict rules of the brand

What does a Franchisee do?

  • scouts for perfect venue
  • saves up enough money to buy a franchise or accesses a loan
  • does market research to make sure the venue and business venture match each other perfectly
  • manages staff
  • liaises with head office with regard business strategies, targets, products etc
  • makes sure business is running smoothly
  • finds ways to increase customers flow
  • creates an environment of good customer service
  • manages finances and cash flow

Are you . . . ?

  • entrepreneurial?
  • a risk taker?
  • self motivated?
  • a good manager?
  • able to motivate staff?
  • a hard worker?
  • organised?
  • ambitious?

How do I become a Franchisee?

To be a successful Franchisee you would have to have a lot of experience and training in business. You will need enough money to buy the franchise or have enough experience and skills for a bank to believe in you to give you a loan.

A Franchisee will probably have a qualification in business management. A background in accounting would be also be an advantage.

As a Franchisee you will need to control all the business and financial decisions. You will need to be a risk taker but a responsible one at that, especially if you have taken out a loan.


  • CLICK HERE to check for a training institution near you to see what they offer.
  • Make sure you understand their entry requirements for each course.
  • To avoid scams, make sure your institution is registered with the Department of Higher Education. 
  • CLICK HERE to check accredited Private Higher Education Institutions. 


OTHER CAREERS TO CONSIDER: Entrepreneur … or … Fire Fighter

Is becoming a Franchisee the right career choice for me?