Michael Vacy-Lyle, CEO FNB Business The franchising sector has shown steady growth over the past four years, in a tough economy from contributing an estimated 9.7% to the country’s GDP in 2014 to its recent figure of more than 15%, according to the Franchising Association South Africa (“FASA”) 2018 survey. This trend is expected to continue. The survey further highlights that 78% of franchisors are optimistic about future growth in their businesses. Around 30% of franchises are now owned by previously disadvantaged South Africans, with one in three franchises turning over more than R20m per annum. This together with the fact that on average a franchise employs 18 staff members (the sector employs more than 370 000 people), makes it clear that as a business model, franchising remains critical to the future of South Africa. Given the FNB Franchise Leadership Summit theme this year – “the future of the franchising sector”- I thought it would be good to reflect on some of the key ...

Morne Cronje FNB is hosting the 7th Franchise Leadership Summit at Montecasino on Tuesday, 13 November 2018. The summit is a well-attended industry discussion amongst high calibre franchisors and industry stakeholders. The Summit is aptly themed “Equipping you to future proof your franchise”. The discussions will include exploring the impact of technology on the franchising industry. To this end, Morne Cronje, Head of Franchising at FNB Business explains that “the rise in online applications in franchising means we need to find innovative ways on how to continue to grow and improve this new dimension to this already robust industry.” The South African Fast Food Landscape Report of 2018 backs the position that Cronje speaks to as it revealed that a growing number of consumers are opting for the convenience of online delivery services when purchasing fast food, this has a far reaching impact that the Summit will begin to talk to in this year’s leg. The speaker line-up include...

Over the past four years the franchising sector has displayed resilience, consistently growing its contribution to the country’s Gross Domestic Product (GDP) from 9.7% in 2014 to its present contribution of 13.3% - an upward trend that is most likely to continue despite the lackluster economy. The current growth of 13.3% is broken down by the Franchise Association of South Africa (FASA) as follows: The largest franchise system is the Fast Foods and Restaurant category (25%). The Retail sector at 15% is the next biggest, followed by the Building, Office, and Home Services sector at 13%. Similar in size are Childcare, Education and Training and Automotive Products and Services (9% each), and Health, Beauty and Body Culture at 8%. The other categories are 5% and smaller. Morne Cronje, Head of Franchising at FNB Business holds the view that the growth in this sector has a great deal to do with the provision of impeccable quality service, he says “business owners cannot control wh...

Planning for the Future Sizwe Nxedlana Aptly themed, ‘Planning for the Future’, FNB hosted the fourth consecutive FNB Franchise Leadership Summit where South Africa’s franchising leaders and stakeholders met to discuss and debate the Franchising landscape. Morné Cronjé, Head of FNB Franchising says, “In South Africa, the franchise industry has remained solid despite challenging economic conditions and the country remains attractive to local and international franchise brands. The industry’s contribution to GDP is estimated at almost 12.5% with more than 600 franchised systems operating and over 31 000 franchised businesses and employing just over 320 000 people countrywide. However the shift in the franchising landscape is changing and businesses need to start looking and planning for the future.” FNB’s chief economist, Sizwe Nxedlana adds, “South Africa’s economic growth has been exceptionally weak in recent years. GDP growth has averaged at 3.1% since 1994, but we have b...

Morné Cronjé FNB will host the fourth consecutive FNB Franchise Leadership 2015 Summit where South Africa’s franchising leaders and stakeholders will meet to discuss and debate the Franchising Landscape. Aptly themed, ‘Planning for the Future’, the event will take place in Johannesburg on Thursday, 12 November 2015. Morné Cronjé, Head of FNB Franchising says, “In South Africa, the franchise industry has remained solid despite challenging economic conditions and the country remains attractive to local and international franchise brands however the shift in the franchising landscape is changing and businesses  need to start looking and planning for the future. South Africa will need to continuously improve the operating environment for franchisees because competitors are increasingly positioning themselves.” The global franchise environment is growing at a fast pace. Looking at the South African franchising landscape, South African franchises are still confident about their...