SA Franchise Warehouse

Investing in a franchise
Franchises in shopping malls

Sorbet has revolutionized the face of beauty in South Africa and is growing at an unstoppable rate. As one of the leading beauty franchises in the country, the nail and skin brand is defined by convenience, professionalism and reasonable price points. 

Opportunities for growth in the retail space in growing. According to figures from the South African Council of Shopping Centres at least 25 new shopping centres, are expected to be added to the market between 2013 and 2016. “The retail space has become a core business hub. We find that many brands have established themselves in the retail space. If not planned properly, the costs incurred could be high and detrimental to your business,” explains Morne Cronje, FNB Head of Franchising. 

“I invested in the franchise from past experience. I was impressed with the concept from a customer perspective and decided to investigate the prospect of investing in a franchise of my own,” explains Lara Campese, Sorbet owner at Gateway Theatre of Shopping. Sorbet has revolutionised the traditional concept of beauty salons creating specific focus on retail. Having stores in shopping centres is one of Sorbet’s strongest business strategies. This presence has facilitated Sorbets growth as the largest retailer of Dermalogica World Wide, with Sorbet being the largest retailer in South Africa.

Cronje explains that “new or existing franchisees should buy a retail business which has a reputation in the market with a loyal customer following and find out whether your retail store business meets the requirements or not. In addition look for the most suitable location which is the single most important indicator of success.”

“I was fortunate to have purchased an existing business so I didn’t incur start up costs. However, whether or not you start fresh or purchase an existing business, it is mandatory to ensure that you have between 3-6 months cash flow available to sustain the first 6 months of operation. Ensure that you have enough cash to sustain opening purchases, rent and staff salaries. These can be the largest expenses in any business,” explains Campese.

“Finance always plays an important role when purchasing or managing a franchise. Key considerations that need to be factored when purchasing a franchise includes research on the potential franchise which should include a review of competitors in the area and the viability of the location, cost as well as maintenance of the franchise,” explains Cronje.  Marketing your business can be pricey however larger centres are very proactive with advertising and have internal mechanisms that tenants can benefit from in a cost effective way. “Maintaining a relationship with your landlord is essential as you will always need them at certain stages of your lease. Ask their opinions and advice on how you can advertise and gain exposure within the centre.” explains Campese.

Keeping current and on trend is important to the Sorbet group. Sorbet is kept top of mind with its loyalty program and proactive marketing campaigns which ensure that customers are informed via SMS and monthly email newsletters on current specials.  When looking at a franchise in a shopping mall, convenience and efficiency comes to mind. “Buying into a well known franchise requires dedication and commitment. While you may find ways to advertise or market your business to customers, word of mouth is sometimes the best advertising that you can get. Treat your customers with respect as they will take your franchise to the next level.” concludes Cronje.