Franchising continues to grow despite challenging economic conditions

The results of the Franchise Association of South Africa’s fourth independent survey sponsored by Sanlam undertaken among franchisors has been released. This survey was conducted to assess the contribution by the franchise sector to the South African economy in terms of GDP.

The most notable results to come from the survey are:

  • Franchising contributes 11,6% to South Africa’s GDP.
  • The number of franchise systems grew by 21%, an increase of 132, from 625 to 757 in 17 franchise business sectors.
  • The number of franchise outlets grew by 13%, an increase of 4 061 from 31 050 to 35 111. The majority are found in Gauteng, followed by the Western Cape and KwaZulu-Natal.
  • Turnover increased by 6%, an increase of R 27,92 billion from R 465, 27 to R 493, 19 billion.
  • 92% of franchisors are optimistic about future growth in their businesses.
  • One in two franchisors plan to expand their franchises outside of the borders of South African, mostly to neighbouring countries.
  • The largest franchise business system is the Fast Foods and Restaurant category at 27%, followed by the Retail sector at 15%.
  • Previously Disadvantaged Individuals business ownership is 18% mainly in the Fast Food and Restaurant, Retailing and Personal Services sectors.
  • Women business ownership is 26% mainly in the Childcare, Education and Training sectors.

The franchise industry continues to grow despite challenging economic conditions, proving once again that franchising is a business format capable of long-term sustainability.

For more in depth information, please refer to the article headed – FASA’s Franchise Survey confirms the tenacity of the sector – in the Trending On SA Franchise Brands column.

Source: Franchise Association of South Africa


kevKevin Antonie


SA Franchise Brands

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