Someone considering buying a franchise needs to understand they are not simply buying a famous name. They are entering a commercial relationship with rules and obligations, and the strength of the brand is only one part of the investment.
Source: Consumer Protection Act 68 of 2008
Frequently Asked Questions
Does a franchisee own the franchisor's brand?
No — the franchisee receives contractual rights to operate using the franchisor's intellectual property.
Does buying a franchise guarantee profits?
No — a recognised brand does not eliminate business risk.
What does a franchisee usually pay for?
Depending on the franchise, fees can cover access to the brand, business system, training, support and other services.