The Benefits of Franchising
The One Energy Franchise offer gives you the opportunity to get involved in the fastest growing
industry in South Africa – namely the renewable energy sector.
You will have an opportunity to develop a profitable business with strong cash flows and at the
same time be personally responsible for a massive reduction in the carbon footprint of the country.
Every heat pump or solar system installed will earn you a couple of thousand rand in net profit
for your own business and every heat pump or solar system installed reduces carbon output from
the production of electricity by more than three tons every year – this is equivalent to removing a
small car permanently off the road.
There are numerous benefits to becoming a Franchisee compared to starting a “stand-alone” business,
which is why Franchising is one of the fastest growing sectors of the South African economy.
Here are some of the advantages of starting a franchised business:
- The failure rate on new start up business in South Africa is huge. Only 20% survive the first five
years. On the other hand, 90% of franchised businesses become profitable businesses over the
same time period.
- The franchisor provides detailed training.
- The franchisee has the incentive of owning his own business with the additional benefit of
continuing assistance from the Franchisor – You are in business for yourself but not by yourself
- The franchisee benefits from operating under the name and reputation (brand image) of the
Franchisor and of the associated brands
- The franchisee will usually need less capital than they would if they were setting up a business
independently because the Franchisor, through their pilot operations and buying power, will
have eliminated unnecessary expense.
- The franchisor provides the advice and/or help in identifying suitable trading locations or
operating territories for the Franchisee.
- The franchisor trains the Franchisee (and very often, the Franchisee’s staff as well) in all areas
of the business such as; installation, accounting, business controls, marketing, promotion and
- The franchisor may negotiate better rates of finance, or more favourable conditions, for Franchisees
with financial institutions.
- The franchisee receives the benefit on a national scale (if appropriate) of the Franchisors advertising
and promotional activities at a lower cost than if they were to attempt such marketing
- The franchisee taps into the bulk purchasing power and negotiating capacity made available
by the Franchisor by reason of the size of the franchised network.
- The franchisee can call on the specialised and highly-skilled knowledge and experience of the
Franchisor’s head office organisation, while remaining self-employed in their business.
- The support and benefits provided by a Franchise system greatly reduce a Franchisee’s business
- The franchisee has the services of the field operational staff of the Franchisor who are there to
assist with any problems which may arise from time to time in the course of business.
- The franchisee has access to use of the Franchisor’s patents, trade-marks, copyrights, trade
secrets, and any secret processes or formulae.
- The franchisee has the benefit of the Franchisor’s as well as the Franchisor’s Suppliers continuous
research and development programs, which are designed to improve the business and
keep it up-to-date and competitive.
- The franchisor provides a knowledge base developed from its own experience, as well as that
of all the Franchisees in the system, which would otherwise be impossible for a non-franchised
business to access.
- A Franchisee can always speak to their Franchisor or a fellow Franchisee to discuss their business
challenges or problems - something a non-franchised business can almost never do.