ZNCC to hold a “Franchising Unpacked” seminar

The Zimbabwe National Chamber of Commerce will hold a “Franchising Unpacked” event at the Crowne Plaza on Tomorrow starting at 9.00am. The will be facilitated by a Franchise Expert from South Africa and will also feature a banker and insurer to explain their roles in a franchising arrangement.

A number of Government Ministers are also expected to attend. To participate a Fee of $170 is payable at our offices. For more details you can call our offices on these numbers 2936820, 781557, 780207, 781672. Below are the frequently asked questions on WHAT IS FRANCHISING?


Franchising a method used to accelerate the expansion and growth of a business by replicating a successful business model. This expansion is designed to mutually spread the burden of supplying more capital for expansion of a business between the engaging parties, this being not as would be in the case with a company-owned expansion and growth model. Understanding the benefits of franchising over the later model can help explain what franchising is in practical terms.


1) Benefits to the Franchisee

An entrepreneur who plans to establish a new business can choose to build a business from scratch, or he can invest in a franchise business, which offers a number of benefits to the business owner. Smart entrepreneurs study the range of financial, logistical and marketing benefits offered by a franchise company before deciding which kind of business to start.

Administrative Support

A franchisor often assists franchise owners with bookkeeping, employee training and local marketing. The franchisor has spent years developing administrative support systems that can make the franchisee’s operations more successful.

Product and Brand Recognition

A franchise business is built on a product or service that has a marketing history and is familiar to customers. When you start your own company from scratch, you could spend thousands of dollars trying to acquire brand recognition for your product or service. When you buy into a franchise, all that preliminary marketing work has been done.

Business Blueprint

Many franchise companies give their franchisees all the information they need to create a successful business. The franchise company tells you what size facility to lease, what your layout should be, how many employees to hire on your start-up, what your estimated start-up costs will be and how to find the right employees for your business. This prepackaged business structure and layout already has a record of accomplishment.

Dedicated Suppliers

A franchise company often supplies a franchisee with dedicated suppliers at predetermined pricing levels. This eliminates the need to hunt for suppliers or negotiate prices and payment terms.


A franchise company succeeds when its franchises succeed. Because of that, a franchise company supports its franchises with national and, in some cases, international marketing campaigns. Your business will be part of marketing programs that you might never have been able to afford if you had started your business from scratch.

2) Benefits For the Franchisor

For a small business owner looking to expand, one option to consider is the selling of franchises. In a franchise arrangement, the business owner sells the rights to open a new unit to another party, who agrees to follow the franchisor’s successful business model as well as pay the franchisor a percentage of the sales. Franchising offers several advantages for the business owner.

Rapid Expansion

If you’re looking to expand quickly, franchising can be an effective way to achieve rapid growth. When you franchise, you don’t have to go through the process of obtaining financing like you would with a typical expansion. Instead, the franchisee supplies the capital and assumes the bulk of the risk that comes with any new business venture.

Passive Income

Franchises create passive income for you, which is income that requires little effort on your part. Typical franchise agreements require that the franchisee pay royalties to the franchisor, which usually ranges from 5 percent to 15 percent of gross sales.

Motivated Operators

Because your franchisee is assuming the risks and rewards that come with business ownership, she is likely to be highly motivated to make her franchise a success. This means more income in the form of royalties for you. In contrast, if you opened a new unit on your own and hired a manager to operate it, motivation may not be as high because the manager may not have a financial stake in the outcome.

Low Failure Rate

The three-year failure rate of franchises is 2 percent to 4 percent, which is much lower than the 65 percent rate for typical new businesses. This is because the franchisee is required to follow your successful business model, which eliminates many of the mistakes often made by new businesses. A high success rate means more royalties for you, the franchisor.

Little Operating Expense

A franchisee is an independent contractor and not your employee. This means that the franchisee bears the responsibility of common operating expenses, including payroll, marketing, taxes and the cost of renting or leasing a building and equipment. In some cases, the franchisor will help the franchisee obtain the necessary financing to get the business started but does not actually co-sign for any loan.


This where the Franchise Association of Zimbabwe comes in, we want to safeguard and regulate the industry to minimize and manage the risks that are associated with this terrain. Any one who is seriously considering buying a Franchise locally or abroad must make use of FAZ and the mechanism it provides.


There are opportunities in the clothing sector, food and allied services, hospitality, services sector, there are a wide range of retail and home based franchise opportunities also available. New opportunities come up on a daily basis.


Mr. Matiza on this one I suggest we get the full program outline from Busi and Sebenzile. I think we may just get ourselves in trouble with the two ladies, but of cause there is my part which are the various workshops, there are the ministers who are presenting papers on the day, then others like Mr. Govere who have offered to contribute, we will also have presentations from a banker and Insurance person and then the big one which the official launch of the Association.

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