Almost 500 franchised systems currently operate in South Africa, producing 12.5% of GDP and 87% of which represent local brands.
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Surprisingly, a third of SA’s franchises are non-foods systems, with the biggest growth areas being service-based and mobile or ‘man-in-a-van’ concepts.
Speaking at a First National Bank (FNB) Kaya FM Franchising seminar in Johannesburg, franchise trainer and consultant, Annie Baptiste, said the high upfront cost of buying a franchise, R840,000 on average plus a 30% minimum cash deposit, is offset by the franchisor’s marketing of the brand, superior fittings, support on-call and tested administrative systems.
‘South Africa has around 26 000 franchised outlets, providing jobs to more than 375 000 people,’ says Anita du Toit of FNB’s Franchising division.
‘There is room for many more franchise systems to be developed, especially in niche areas, such as specialised home retail concepts or personal services.’
Being able to spot opportunities to leverage the growing need for convenient products and services, which free up precious time for consumers to spend with their families, promises to be a winning recipe for success in this industry. Read more.
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