8 ways Africans can earn business franchising


Initial investments

According to Investopedia, business owners grant business licenses to third-party owners in the franchise industry. Most franchisors charge franchise fees in exchange for operational business rights. These one-time fees refer to the initial investment costs and are generally governed by federal law.

Africans can earn this commission from potential franchisees at the start of their business relationship. According to Small Biz Trends, you can earn between $25,000 and $50,000 from the initial investment fees. However, initial investment costs vary by franchise brand and industry segment. Most franchisors cover market costs, compensate vendors, etc. with these fees.

Royalty fee

According to The Balance Small Business, franchise royalties are ongoing payments from franchisee to franchisor for ongoing operations. Franchisors allow investors to use their brand image and claim management service fees or ongoing royalties. Royalties are five or six percent of gross sales or revenue.

Africans can earn royalties through business franchising and earn even more when turnover increases. Although the 6% average differs by industry, photo products and services have the lowest royalty at 4.9%. According to Small Biz Trends, you can earn 14% royalty on freedom tax services or 10% on business-related franchises.

Renewal fees

According to the Balance Hub, investors renew contracts at the end of their franchise agreement. This process entails administrative and legal costs with benefits for franchisors. Investors can renew the terms of the contract and renew the relationship with the franchisor for a fee. This is another way for Africans to make money through business franchising.

Most franchisors call the payment a successor fee because it is less than the initial investment. Although the payment is small compared to the initial franchise fee, it covers administrative and legal costs.

Sublease rent supplements

According to the Canadian Business Franchise, franchisors make high profits from subletting rental fees. Many franchisors earn more revenue by renting properties or subletting the premises to commercial franchisees. If you can get a property at a lower price, this franchising industry is for you.

With strong bargaining power, African franchisors can make a fortune in the franchise business. You can strike a good deal with owners and earn money from investors. Additionally, franchisors negotiate lower rents with building owners, sublet space to their franchisees, and raise the rent.

Sell ​​event tickets

According to Franchise Gator, franchisors can earn additional income by charging investors for event tickets. African franchisors can benefit by making event fees and attendance mandatory for franchisees. If you can organize product promotions or launch events, consider the business franchise industry.

You can make a decent income from this profitable market. Many franchisors cover set-up costs, but you can make a profit. Making fees mandatory is an ideal strategy for making more money. Additionally, investor payments can cover the running costs of the day.

Provide training to struggling franchises

According to What Franchise, many franchisors include initial training in the franchise payment. But they charge a fee for separate or additional staff training. In addition, the initial franchise payment covers the price of specialized equipment, territorial analysis and recruitment. Site identification, training and franchise launch are additional costs covered in the initial cost.

But if the franchisor omits formation fees, consider inquiring further as investors may pay separately. African franchisors can offer investment and training packages and earn a desirable income from training fees. Consider packages with different levels of coaching for more revenue.

Equipment and supplies

According to the Lusthaus Franchise Act, franchisors can determine the products and services for the franchisee’s business activities. As a result, franchisors ensure that investors meet the required standard of quality assurance. This approach is an effective way for African franchisors to increase their profit margins. In addition, it gives the franchisor bargaining power as it determines considerable discounts for investors.

Many franchisors make money by providing equipment for regular business operations and attract more investors with the profits. The more investors there are in a franchise business, the more supplies there are for business operations.

Market your brand

According to a report on LinkedIn, franchisors can become more successful by investing in marketing. African franchisors are building brand awareness, attracting investors and increasing revenue through effective marketing campaigns. Consider marketing your business if you want to build positive brand associations and earn more in upfront payments and royalties.

You can make your brand known to customers, letting them know about the products and services offered for the growth of the business. Consider multi-channel marketing and leverage social media for brand recognition.


Africans can derive a desirable income from commercial franchising through initial investments, royalties or renewal fees. You can also make money by selling tickets to events, subletting rent supplements, and selling equipment. The business franchise industry is lucrative and earning an income is one step closer to living your dream life. Now is the time to explore the industry and earn a desirable income through effective strategies.

Olayinka Sodiq is a skilled copywriter with technical, analytical and writing experience gained over 5 years of in-house and freelance gigs. He is versed in finance, investments, technology, blockchain, mergers and acquisitions, bankruptcy, etc.

*Views expressed in this article are those of a Business Insider Africa contributor. It does not represent the views of the Business Insider Africa organization.


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