Starting up a business from scratch is not easy but when there is already a prototype and brand to adopt, then you can hit the ground running. Buying a business franchise gives you a quantum head start, as it saves you the trouble of building a brand from scratch and acquiring customers. It also eliminates huge marketing costs, start up mistakes, and places you right in a revenue model that works.
Franchising is an arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. For instance, an entrepreneur can buy the franchise of a leading fast food restaurant making waves in Lekki, Lagos State (IJKliser) and open the same model of business in another city like Benin (IJKliser Benin outlet). The franchiser usually expects the franchisee to uphold the same standards of the business, including same branding and recipe.
Franchising can have your business up, running and profitable within the first year, which entrepreneurs know is a difficult feat for any start up. Break even and profitability is usually projected for 2-3 years for startups. Franchising arrangement can be achieved in virtually all sectors of the economy and we have selected nine top rewarding opportunities entrepreneurs should consider.
#1: Pizza Franchise.
One of the fast moving franchise businesses is the Pizza Franchise. Pizza spots have become very popular in Nigeria in recent times, with Domino pizza leading the pack. Wherever they setup shop, people flood it like they’re sharing free money. All you have to do to get their franchise is approach the management of the company and sort out terms and conditions. It would also help to target locations where the company may not be considering immediately but where there are huge potentials like other cities or states where the company is yet to have presence. If you get accepted in Domino Pizza franchise program, find a good environment in an upscale, residential neighborhood.
#2: Quick Service Restaurant.
Another lucrative franchise business is quick service restaurant franchise. There are several top range brands in Nigeria and abroad like Kentucky Fried Chicken (KFC), Chicken Republic, Tantalizer, Sweet Sensation, McDonald’s and several others. These restaurants are experiencing high patronage from individuals and businesses who want to get a quick meal. So buying the franchise of any of these restaurants would be a smart move.
#3: Transportation.
Transportation Franchise holds another good opportunity for franchising. Road transportation is the most popular mode of movement in Nigeria where a lot of people travel inter-state daily. The most popular transport companies are the state owned transport vehicles like Akwa Ibom State Transport Company (Benue, Plateau, Cross River, and other states have their transport service which plies interstate), ABC Transport, Agofure, Ekeson and many others. These brands are very popular and reliable to transporters over the years, so getting their franchise to ply available interstate routes is a sure way to attract road commuters en mass.
#4: Small Business.
Small business franchises are also doing well in Nigeria. Several small businesses have the vision to expand but do not have the capacity and they welcome entrepreneurs who wish to setup similar business in other locations. There are opportunities in printing, pet care, supermarket, and other specialized and professional areas like public relations, accounting, hospitals, pharmaceuticals, engineering and others. Some professional firms in Nigeria use the franchise of foreign firms who are already established in the world to trade and earn more.
#5: Cinema.
Cinema business have become very popular in many parts of Nigeria and patronage cuts across all generations though younger people are more inclined to visit frequently. The popular movie halls are usually filled and tickets sold out especially during weekend views. Silverbird and Ozone are some of the popular cinemas that usually have a large traffic of students and young people. Based on the crowd these cinemas are currently pulling, getting a franchise from either of them or other popular cinemas would be a profitable venture.
#6: Logistics.
Logistics remains a very viable business and one easy way to participate is to buy franchise of reputable brands in the courier business. Brands like DHL, UPS, Tranex, and others are world renowned, and entrepreneurs can buy such franchise and participate in picking up and dropping off mails and parcels in their locality. Other types of logistics activities gaining popularity include courier activities for major ecommerce businesses like Konga, and delivery of meals and snacks for quick service restaurants and confectionary shops.
#7: Interior Design.
Interior design is catching on in Nigeria and the demand for tiles, marbles, carpets and rugs is therefore very high. Every home and office owner plan to decorate with either tiles, carpets or rugs. Some brands like Nobel Carpets and Rugs have become very popular in the market, and getting a franchise from them would aid rapid sales of such items.
#8: Petroleum Products.
Petroleum products are essential commodities in Nigeria because it is required to fuel and refuel the over one million vehicles plying our roads, and over 10 million power generating sets which we have to run due to incessant power outages.
Though there are many popular filling stations, the NNPC filling station stands out as the most reliable because it is more or less a government corporation and usually offers the lowest pricing. So NNPC franchise would help any product dealer sell out quickly. But like already noted there are other reputable brands like Oando, Total, Agip, Mobil and others.
#9: Mobile Devices.
These days almost everyone owns a mobile phone or device, and it has become a part of our way of living. We use it to stay in touch with family members, friends, business partners and generally keep in touch. Mobile devices with internet access are used to browse for news, events, entertainment and even to hang out with various groups via social media.
The fact that mobile devices are often small, delicate, and carried around make them prone to damage and theft, which means people have the need to replace devices and accessories from time to time. There are many leading brands marketing devices and accessories like Samsung, Infinix, Techno, and the iPhone.
Many entrepreneurs are already taking advantage of franchising to make money from sales and servicing of mobile devices and accessories but the market is huge given our population of over 170m people and there is still enough opportunities to exploit. A particularly interesting success in the Nigerian mobile phone retail industry is Slot.
The brand has grown over the years to become one that people lookout for when trying to purchase a mobile device. With thousands of people flocking Slot stores all around Nigeria daily, taking advantage of franchise opportunities offered by the brand is a smart way to penetrate the mobile phone market.
Post-script: Before you decide on what franchise to buy, ensure you understand the industry you want to enter. Consider a product with a large market and spend time and money to research. Also, learn about the competition in the area and set realistic targets. Get a lawyer or professional to study the franchise agreement and hit the ground running rather than face the stress and mistakes of starting a business off the ground.
