Franchising is one of the fastest ways to expand a successful business. In Zambia, where entrepreneurship is rising and urban markets like Lusaka, Kitwe, and Ndola are booming, franchising presents a powerful opportunity for growth. This guide walks local entrepreneurs through the practical steps to franchise a business legally and profitably in Zambia.
Understanding Zambia’s Franchise Environment
Market Potential
Zambia’s franchise space is growing steadily, with local and foreign players active in food, retail, hospitality, health, and education. With a rising middle class, urban expansion, and demand for proven business models, franchising is a promising route for businesses ready to scale.
Regulatory Framework
Franchising in Zambia is guided by:
- The Competition and Consumer Protection Act
- British common law principles for contracts
- Guidance from the Franchise Association of Zambia (FAZ)
Franchisees and franchisors must ensure their agreements comply with fair competition and consumer protection standards.
Step 1: Register Your Business Legally
Before franchising, your business must be registered with PACRA (Patents and Companies Registration Agency).
Registration Process:
- Name search and reservation via PACRA’s online portal
- Select a business structure:
✔️ Private Limited Company (most recommended)
✔️ Public Limited, Business Name, or Company Limited by Guarantee - Submit required documents:
✔️ Form 3
✔️ Articles of Association
✔️ Director/shareholder ID copies
✔️ Business address
Registration typically takes 3 working days.
Tax Compliance:
Once registered:
- Get your TPIN from ZRA
- Register for VAT (if applicable)
- Enroll with NAPSA for employee pensions
- Pay local business levies
Step 2: Protect Your Intellectual Property
Your brand is your biggest franchising asset. Protect it.
Trademark Registration with PACRA:
- Conduct a trademark search
- File your application
- PACRA examination and 60-day public notice
- Receive your certificate if no opposition
🕒 Takes 6–12 months
💰 Costs approx. ZMW 1,100
🔒 Valid for 10 years (renewable)
You may also register:
Step 3: Build a Scalable Franchise System
Your business must run without you at every branch. This requires systems.
Franchise Operations Manual
This is your franchise’s “rulebook” and should include:
- Brand identity and usage
- SOPs (Standard Operating Procedures)
- Customer service standards
- Health, safety, and hygiene
- Marketing and advertising policies
- Financial reporting formats
Franchisee Training Programs
Design clear training for new partners:
- How to run daily operations
- How to manage staff, stock, and clients
- How to use approved technology
- Compliance and brand standards
Consistent training protects your brand.
Step 4: Set the Financial Terms
Franchise Fees to Consider:
- Initial Franchise Fee: One-time fee to buy in (usually $10,000+ for small businesses)
- Royalty Fee: A percentage of revenue (typically 4–8%)
- Marketing Fee: Used for brand-wide advertising (1–3%)
Be competitive—your fees should reflect your brand’s value while remaining affordable.
Franchisee Funding Options:
Help franchisees access financing:
- Bank loans
- Microfinance (e.g., FINCA, VisionFund)
- CEEC grants (K6 million for tourism franchises)
- USAID/DFC SME Loan Guarantee
Your ability to guide partners through funding options boosts uptake
Step 5: Draft Legal Documents
Franchise Agreement
This is the legally binding contract and must cover:
- Rights granted (territory, exclusivity)
- Fee structure and obligations
- Brand compliance terms
- Duration and renewal
- Termination terms
- IP use and post-exit conditions
Make sure your lawyer includes local law compliance, including CCPC rules.
Franchise Disclosure Document (FDD)
Though not mandatory in Zambia, providing one builds trust. It should include:
- Your business history
- Franchisee obligations
- Expected investment
- Financial performance
- List of existing franchisees
Step 6: Marketing and Brand Standards
Your brand must feel consistent—no matter the branch.
Brand Compliance Toolkit:
- Visual identity (logos, colors, uniforms)
- Messaging guidelines
- Signage and packaging rules
- Social media standards
Local Marketing Strategy:
- Use Facebook, WhatsApp Business, and Zambian influencer partnerships
- Run co-branded promotions in local languages
- Invest in mobile-optimized ads (mobile penetration is high)
Strong local marketing = stronger ROI for franchisees.
Step 7: Launch and Support
Support Systems:
Once a franchise opens, offer:
- Regular check-ins and operational audits
- Business coaching and peer networking
- Marketing templates and campaign help
- System upgrades and tech support
Quality Assurance:
Build in feedback loops:
- Customer reviews
- Mystery shopping
- Routine inspections
- Corrective training when needed
Conclusion
Franchising your business in Zambia is not just a growth strategy—it’s a legacy move. With the right legal foundation, brand protection, systems, and support, any successful Zambian entrepreneur can build a franchise that scales beyond borders.
Whether you run a café, retail brand, salon, or training center—2025 is your year to franchise smart, legally, and profitably.
