Bank Involvement Boosts Franchising Industry

Money Web:

With South Africa’s recent focus on entrepreneurship, franchising has gained significance in terms of attracting new business owners. South African franchisors are seeing enormous interest in the purchase of their outlets by people across the economic spectrum - from young people just starting out, to older people keen to leave their jobs in the corporate world. In addition, economic growth means that more businesses are looking to expand their businesses by franchising their concerns.

‘All in all, it’s been a great time for banks to become more involved in the industry,’ says Riaan Fouche, Head of Franchising at First National Bank (FNB). ‘In the past, the franchisor often handled the financing of a deal for a new franchisee, but now people interested in buying into a franchised business come directly to the bank. That allows the franchisor to focus on his core business and the banks to focus on theirs.’ Full article.