Franchising has become the latest trend in business expansion and business acquisition and with the South African franchising market estimated at being around 12% and growing rapidly, enormous potential for future growth is indicated. Companies both local and international are seeking franchise expansion opportunities in Africa despite the higher risks. The significance of implementing franchises into Africa is the filtering down of business opportunities to the small and medium enterprise sector. It can be said that franchising promotes business growth and private ownership, while improving the quality of life of the poor through its impact on income and employment. A franchise organisation that grows too quickly might not have the necessary ‘factors’ in place to support all of the units properly. In the survey conducted, it was indicated that the franchise business practice echoed the literature reviewed. All the steps necessary to establish a franchise are important but not necessarily as equal. The more matured franchisee needed less guidance from the franchisor and relied more on the business concept and location. Potential franchisors need to take the necessary steps to establish a franchise and treat each step as an important part of the franchise process.

This treatise investigates the restaurant industry, entrepreneurship, franchising and restaurant franchising in order to develop a model that will enable a full service restaurant concept to be converted into a successful franchise system. Restaurants play a significant role in our lifestyle, and dining out is a favoured social activity. The industry plays an important role in the transfer of skills as many people start working in the restaurant industry before moving onto more formal careers. The restaurant industry offers many opportunities for entrepreneurial activity as a result of the relatively low barriers to entry. Entrepreneurship is the pursuit of opportunity regardless of the resources at hand and it requires a willingness to take calculated risks in order to build something of value from virtually nothing. The success of emerging economies such as China and India has proven that the only growth sectors in these economies are small and medium enterprises, which are driven by entrepreneurs. Franchising is considered to be a viable growth strategy for small business as it provides a means of raising capital and a method of expanding the business in a relatively low risk manner. There are many well established restaurant franchise brands that originated in South Africa, starting out as successful single outlets and then by means of the business format franchise model, developed into multi unit franchise systems. There are certain basic generic steps that must be followed when developing a franchise system. This was verified by the empirical study of this treatise which was conducted as a single unit case study on the Dulce Franchise Group. Finally, as a result of the analysis of the literature study and the findings of the case study, a restaurant franchise conversion model was developed.