A Royalty Free Franchise is an innovative concept and Max Box is proving that the model can be very successfully implemented in South Africa.
What Sparked this Innovative Idea?
Max Box was formed in 2006 when the fish and chips franchise industry first started in South Africa. The owners were part of a fish and chips franchise and soon realised that the formula didn’t work for them: things had to change. So they developed their very own brand, always having the owner and store profitability at heart. To have the business succeed, it had to be innovative and it was important to them to be on speaking terms and work closely together with his franchisees to develop new ideas and solve existing problems. The Max Box Franchise knew that being passionate about Max Box would see their concept through and that’s how they gave birth to the First Royalty Free Franchise in the fish and chips franchise sector.
At the end of the day it really comes down to teamwork, says one of the owners.
Why Royalty Free?
Monthly royalties have become the biggest burden for franchisees and have put great financial strain on owners in the fish and chips franchise industry in South Africa. With their research and knowledge the Max Box franchisors have noticed that owners can’t reinvest into their business if they can’t save extra money. It restricts franchisees from upgrade equipment and keeping the look and feel of the shop up to a reputable standard, said the Max Box owners. Most fish and chips franchisees find themselves in a downward spiral with ever-increasing operating costs and several new fish and chips shops opening every week.
The royalty free franchise concept now brings hope to shop owners that previously couldn’t survive the high monthly royalties and were almost forced to close their doors. With owners now being in a financially better position, they realised that it boosted working moral and cooperation with their brand.
Why still be part of a Franchise?
The franchise model has proven itself, and it is still very important in today’s time to be part of a franchise in order to survive in the ever-changing competitive market conditions and to keep up with new designs, print, trends, store value, advertising, product testing, etc. If not done properly it will undoubtedly result in the downfall of most fish and chips stores.
An Opportunity for No-Name and Independent Traders?
Ma Box can now offer no-name or independent shop owners the opportunity to join the franchise should they meet the basic conversion requirements. There are a lot of competent fast food owners out there that have great potential but lack the franchise brand behind them to take their business the next level.