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MULTI-STORE OR MULTI-BRAND? FINDING YOUR WAY IN FRANCHISE GROWTH IN 2026
BY: TANA MALINGA
Multi unit franchising is growing fast in South Africa, and it is not only happening in restaurants. As 2026 begins, many franchise owners in different sectors. Grocery, liquor, retail, and education, are thinking about expanding. But doing well with one store does not guarantee success with more. Moving into multi store franchising needs deep thinking, careful planning, and honest reflection.
Henk Botha, a Franchise Specialist at FNB South Africa, says this shift shows a bigger change in franchising. Big brands now prefer to grow from within. Instead of bringing in new franchisees, they often give extra stores to owners they already trust. This opens real opportunities, but Botha warns that expansion should be treated like starting franchising all over again, with the same caution and seriousness.
One major decision is whether to open more stores under the same brand or move into different brands. Both options can work, but moving into other brands is much harder. Many franchise agreements limit this. Franchisors want owners who are fully focused on their brand, so they usually restrict outside business interests. Franchisees must ask for permission, and approval only comes if the new business does not compete for time or market share.
Botha explains that the safest growth comes from businesses that complement each other, not compete. For example, a grocery store adding a liquor outlet makes sense. A hardware store adding a tool-hire business also works because customers naturally overlap.
Even staying within one brand has risks. A common mistake is opening stores too close together. While it may look like growth, selling to the same customers only splits the market. This can be dangerous financially, as debt and costs rise without real revenue growth.
Problems grow when strong stores are used to support weak ones. This often happens when franchisees buy underperforming outlets at discounted prices. Even if issues like staffing or stock seem fixable, the drain on cash flow can be bigger than expected. A low purchase price does not always mean a good deal. Sometimes, walking away is the wiser choice.
Botha also says expansion changes your role. Managing more than six or seven outlets usually requires formal systems, admin teams, and managers. At that point, you are no longer just running stores, you are running a business.
“The opportunities in 2026 are real,” Botha says, “but only for franchisees who grow with discipline.” Without readiness, even a strong single store can turn into a struggling multi-unit business.
