5 ways Africans can earn from business franchising

5 ways Africans can earn from business franchising
5 ways Africans can earn from business franchising

5 ways Africans can earn from business franchising

Franchising is the establishment, granting, or use of a franchise. Franchising boosts business revenue. However, restrictive regulations, new responsibilities, and operating costs bring challenges.

That notwithstanding, this article offers recommendations on how Africans can make money through business franchising. These recommendations are based on insightful analysis from reliable sources.

It is known that business owners give operating licenses to third-party owners in the franchising industry.

The following are the businesses you can earn from per business franchising:

1 . To begin with, RENEWAL FEES

Investors renew contracts at the end of every franchise agreement. This process incurs administrative and legal costs with profits for franchisors. Investors can renew the contract terms and the relationship with the franchisor at a fee.

This is a way for Africans to make money from business franchising. Most franchisors refer to the payment as a successor fee. This is because it is lower than initial investments. Although the payment is low compared to the initial franchise fee, it covers the administrative and legal costs.


Franchisors can earn an additional income by charging investors for event tickets. African franchisors can benefit by making event fees and attendance compulsory to franchisees. If you are good at organizing product promotions or launching events, consider the business franchising industry.

Hence, you will be able to earn a decent income from this market. Making the fee compulsory is an ideal strategy to earn more income.


Many franchisors include their initial training fees in the franchise payment. But they charge a fee for separate or additional staff training. The initial franchise payment covers the price of specialist equipment, territorial analysis, and recruitment. Site identification, training, and franchise launch are additional fees covered by the initial cost.

If the franchisor omits the training fee, the investors will have to make the payment later. Consider the monies they may pay separately. Franchisors can offer investment packages on training and earn a desirable income with the fees. Work on packages with different levels of coaching for more income.


Franchisors can become more successful by investing in marketing. Franchisors can build brand awareness. This will attract investors and increase revenue with effective marketing campaigns. Market your business if you want to create positive brand associations and earn more on initial payments.

You can also get your brand name to customers, and let them know the products and services for business growth. Consider multi-channel marketing and leverage social media for brand recognition.


According to Lusthaus Franchise Law, franchisors can determine products and services for franchisee’s business operations. As a result of this, franchisors ensure investors meet the required standard for quality assurance.

Hence, this is an effective way for franchisors to increase profit margins. It gives the franchisor bargaining power. They determine considerable discounts for investors. Franchisors can make money from supplying equipment for regular business operations.

Therefore, this will help attract more investors with the proceeds. The more investors in the business, the larger the supplies for business operations.

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