Durban - The franchise sector is booming. In the past two years, revenue from 25 879 outlets soared 48 percent to R188 billion from R127 billion in the previous period.
This has contributed 12 percent to gross domestic product and creating an additional 180 000 jobs.
This is according to Standard Bank’s Franchise Factor, a survey compiled by Franchize Directions, which said this week the number of jobs in the franchise sector soared 77 percent to 412 428 in the two years to February.
Frank Orchard, Standard Bank’s head of franchising and strategic alliances, said: “The establishment of more than 6 000 sustainable small and medium-sized enterprises [SMEs] over two years Â… augurs well for the economy given the fundamental contributions made by SMEs to thriving economies worldwide.”
Of those employed in the sector, about 24 000 people are owner/operators of franchise outlets, 372 518 are employees and the balance are employees of franchisors.
Colen Garrow, a Brait economist, said: “This is exactly where we should be creating jobs.
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