When we think of franchising, we often picture beautiful stores in an urban area, filled with support from customers in the hustle and bustle of the city. However, there’s a gap being missed in the echoing landscapes of the rural areas.
Whether you’re interested in a garage, supermarket, or becoming a franchisor, providing an in-demand solution for rural areas, there’s room for franchising growth. In this article, we’ll discuss how to unlock the potential of rural franchising.
Start with What People Actually Need
A lot of entrepreneurs fall into the trap of trying to push a product or service into a rural area without checking if there’s real demand. You’ve got to start on the ground, find out what people need that they’re not currently getting.
Is it quality groceries at decent prices? A trustworthy mechanic? A place to buy farming supplies without travelling 50 km? What are people spending their money on already, and what are they sacrificing because it’s too hard to access? You can also have a look at franchising models that serve social impact.
Do your market research properly. You can start small. Having informal conversations with locals, sending out local surveys, or partnering with someone who lives in the area can give you solid insight. It’s about identifying gaps and building a franchise solution that fits into that environment, not forcing a one-size-fits-all model.
Keep It Flexible
Rural businesses need to be built differently. You’ll face challenges like unreliable infrastructure, longer delivery routes, and slower foot traffic. So, you must plan for that.
Instead of a large retail store, start with a smaller container outlet or mobile unit. Look at multi-use spaces, for example, a fuel station that includes a fast-food franchise, basic groceries, and airtime sales all in one.
Also, think about using solar power or backup generators where electricity is unstable, and work with suppliers who are used to delivering to rural or peri-urban areas. Lastly, ensure you have water tanks as a backup.
Partner with the Right People
This part is crucial. A rural franchise model often succeeds or fails based on relationships – with your franchisees, local stakeholders, and even the broader community.
If you’re a franchisor, your rural franchisees will need more support than your urban ones. That means stronger onboarding, training that doesn’t require them to travel far, and check-ins that go beyond just financials. Invest in mentorship. Equip them to be business owners who can navigate unique challenges, from staff retention to marketing to community engagement.
And if you’re the franchisee, be choosy about the brand you partner with. Look for franchisors who understand rural markets and are willing to back you long-term, not just hand you a manual and disappear. Ensure you conduct a thorough background check. To be on the safe side, partner with brands accredited by the Franchise Association of South Africa.
Know the Local Rules (They’re Different)
Rural franchising also comes with its own legal considerations, especially when it comes to land use, trading licenses, and employment. So, ensure that you inform yourself of all the franchise laws and regulations.
Some areas operate under traditional authority or communal land rights. Others fall under municipalities with very different by-laws from the metros. You might need special permissions or to go through processes that aren’t common in cities.
Don’t skip this step. Get legal advice early. Work with local municipalities, traditional leaders, and even community organisations where necessary. And make sure your franchise model is compliant with the Consumer Protection Act and other franchising regulations that apply across South Africa.
Financing Is a Hurdle – But It’s Not Impossible
Getting funding for a rural franchise can be tough. Banks often see it as high-risk — they worry about things like foot traffic, logistics, and the time it takes to see returns.
But there are ways around that:
- Look for low-cost franchise models.
- Consider various funding models, such as grants or rural development funds that work alongside private loans.
- Start small. Prove the model in one area, then scale.
Don’t be afraid to negotiate. Many successful rural franchises start with just one determined business owner who found a way to make it work.
Use Tech and Local Infrastructure Smartly
Rural doesn’t mean offline. In fact, many small towns and villages have mobile coverage, and that’s enough to run card machines, POS systems, WhatsApp ordering, and even loyalty programmes.
If the Internet is unreliable, you can work with systems that sync when online and operate offline in the meantime.
Also, think about your supply chain. You’ll want solid agreements with suppliers who deliver reliably, or better yet, work with other local franchisees to bulk order and share transport costs.
