Morne Cronje The franchising industry has steadily shown adaptability to the tough economy by growing the sector 3,6% over the past four years – from contributing an estimated 9,7% to the country’s GDP in 2014 to its recent figure of 13,3%. This trend is expected to continue in the same trajectory in the short-term and could possibly improve should SA see better economic growth. According to a survey conducted by the Franchise Association of South Africa (FASA) , 78% of most franchisors are optimistic about future growth in their businesses. Although this translates to positive sentiments, the franchising is still, like other businesses, also vulnerable to the economic headwinds. As a result, franchisors need to keep abreast of their operating environment. Morne Cronje, Head of Franchising at FNB Business says, “2017 has been a very tough year for businesses and consumers. However, the sector continues to perform well gradually year in and year out. This is testament that franc...

Jeremy Lang Trends in the franchising industry for SMEs to take heed of The resilience and vitality of the franchising industry in South Africa is more apparent than ever, and increasingly becoming a notable asset to the country. Jeremy Lang, regional general manager at Business Partners Limited (BUSINESS/PARTNERS), says that the franchising sector continues to grow on all fronts, and is increasingly offering business opportunities for local entrepreneurs and enabling the creation of jobs – something that the country desperately requires as the economy continues to shed jobs. He points to recent Franchise Association of South Africa’s (FASA’s) statistics which show that, in a year of low overall economic growth, the franchising sector's share of the country's GDP in 2017 is reported at R587-million and accounts for 13.3% - an increase from the 11.6% of GDP recorded in 2016. The number of outlets (franchisees) reportedly increased from 31 111 to 40 528, and the numbe...