Press Releases

FRANCHISEES FLOURISH WITHIN THE SUPPORT SYSTEM OF FRANCHISING

In today’s difficult trading environment starting a business or even a franchise does not guarantee success but as one franchisee put it, “I would rather be in business within a franchise system than be facing all these challenges on my own.” The Franchise Association of South Africa, in addition to conducting a survey on the franchise sector in relation to its franchisors, also surveys franchisees to find out how they are faring and what their challenges are. High on the list of priorities within the survey, which is sponsored by Sanlam, is their satisfaction levels in a number of areas ranging from satisfaction with their franchisor, their landlord, even their suppliers. Click here to view the full article

HIGHLIGHTS OF THE FRANCHISEE SURVEY

The results from this survey show that two in five (41%) of franchisees have been in business for more than ten years and 69% for more than five years. The average number of years in business has increased from 7,8 in 2016 to 10,3 in 2017 over the whole sample. Click here to view the full article

FRANCHISING GROWS IN A TIGHT ECONOMY

When the Franchise Association of South Africa (FASA), together with sponsor Sanlam commissioned Research IQ in 2014 to conduct a survey of the industry and track its growth, South Africa and the world had already been in a recession for five years. Despite trying socio-economic conditions, political uncertainty and tough trading conditions, the franchise sector has held its own over the past four years growing its contribution to the country GDP from 9.7% in 2014 to its present figure of 13,3% and its estimated turnover from R465 billion in 2014 to R587 billion in 2017.Click here to view the full article

TRANSFORMATION A TOP PRIORITY FOR FRANCHISING

The Franchise Association of South Africa (FASA) believes the franchise sector, which contributes 11.6 percent to the country’s GDP and employs close to 400 000 people through its 757 franchise systems and their 35 111 franchise outlets, can play a key role in creating new businesses to grow the economy through innovative venture creations. To this end, the Franchise Association runs an active Transformation, Stakeholders and Funding committee made up of franchisors, funders and government institutions represented by the Department of Small Business Development and its agency sefa to explore new ways to facilitate transformation, empower entrepreneurs and small businesses in bridging inequality whilst creating prosperity and employment. Click here to view the full article

NETWORKING OPPORTUNITY AT THE FRANCHISE BUSINESS FESTIVAL

They say franchising is the pebble thrown in the pond that causes the ripple effect of a successful brand. As the ripples perpetuate the popularity and demand for that brand, developers, shopping malls and leasing agents line up to include those successful retailers in their tenant mix. But it is often start-up franchise concepts or lesser-known brands that could well be tomorrow’s leading brands that struggle to get good sites and are unproven to the developer. How to get a foot in the door and convince developers and owners of shopping centres is a challenge that many franchisors have to contend with. The other side of the coin lies in a proliferation of shopping centres all offering the same well-established brands – where in fact a changing market-place and more discerning shoppers are looking for diversity in the shopping centre’s tenant mix... Click here to view the full article

THE FRANCHISE ASSOCIATION OF SOUTH AFRICA (FASA) COMMITTED TO INNOVATION AS A WAY TO TACKLE UNEMPLOYMENT AND CREATE JOBS

Reacting to the Statistician-General of Statistics SA Quarterly Labour Force Survey that shows unemployment rising to a 14-year high with 27.1% of the population without a job, the Franchise Association of South Africa (FASA) believes the franchise sector, which contributes 11.6 percent to the country’s GDP and employs over 400 000 people through its 757 franchise systems and their 35 111 franchise outlets, can play a key role in creating the necessary jobs to grow the economy through innovative venture creations. With the gap between the unemployment rate envisaged by the National Development Plan (NDP) and the current rate widening and with Government’s goal of 5 million jobs by 2020 fading fast, the only solution for real economic growth to happen, is if 90% of South Africa’s jobs come from small business... Click here to view the full article

FRANCHISE ASSOCIATION OF SA URGES MEMBERS TO SUPPORT LOCAL PROCUREMENT

With the recent entry into the South African market of a large number of new franchises, particularly in the fast food sector – think queues around the block at the openings of Burger King and Starbucks, the arrival of Domino’s Pizza and Krispy Kreme and the proliferation of so many other franchises in just about all industry segments, it is no wonder that franchising contributes almost 12.5% to South Africa’s GDP. The potential for these franchises to contribute even more lies not only in generating increased sales of their respective products and services, but in the business to business opportunities that exist between them... Click here to view the full article

FASA’S CHAIRMAN AIMS TO PUT ENTREPRENEURSHIP AND EMPLOYMENT FIRST

The appointment of Tony Da Fonseca, Managing Director of the OBC Group as Chairman of the Franchise Association of South Africa for 2017/2018 comes at a crucial time in South Africa as it faces uncertainty on so many fronts - politically, socially and economically. At FASA’s Annual General Meeting, outgoing Chairman Naas Du Preez, MD of Oasis Water, in handing over the baton to Tony Da Fonseca had this to say of the current business environment; “The past few years have not been easy to be in business – what with global political upheaval and an uncertain economic outlook. Having said that... I would rather be in business within a franchise system than be facing all these challenges on my own.”... Click here to view the full article

FRANCHISE AWARD WINNERS SUCCEED AGAINST THE ODDS

The Franchise Association of South Africa’s Franchise Awards for Excellence in Franchising, sponsored by Sanlam and held this past week-end as part of their annual Franchise Business Festival, honoured those franchise brands that have bucked the negative trends to show resilience and growth in these trying times. Commenting on the finalists and winners in the categories, Franchisor of the Year, Franchisee of the Year, Newcomer Franchisor of the Year, Franchisor: Leading Developer of Emerging Entrepreneur, Job Creator of the Year, Brand Builder of the year and Field Service Consultant of the Year - Tony Da Fonseca, FASA’s Chairman for 2017/8 and MD of the OBC Group ... Click here to view the full article

ATTEND A FRANCHISE SEMINAR TO BE YOUR OWN BOSS

In a sluggish economy, there is light shining at the end of one tunnel - that’s the success of franchising which, despite the odds, has held its own year-on-year in every respect – from showing long-term sustainability to showing a high level of optimism for the future. But the proof of the viability and appeal of franchising lies in what the 40 000 franchisees who own their own businesses think of their choice of franchising as the way to being their own boss. Research shows that franchisees ... Click here to view the full article

FRANCHISING HOLDS ITS OWN YEAR-ON-YEAR

“The past few years have not been easy years to be in business – what with global political upheaval and an uncertain economic outlook. Having said that... I would rather be in business within a franchise system than be facing all these challenges on my own.” This was how Naas Du Preez, outgoing Chairman of FASA for 2016 described the business environment when he handed over the Chairmanship baton of the Franchise Association of South Africa to Tony Da Fonseca, MD of the OBC Group. ... Click here to view the full article

FASA’S 2017 FRANCHISE MANUAL SHOWS INNOVATIVE FRANCHISING PLAYS A LEADING ROLE IN THE ECONOMY

Despite the tough economic conditions of the past eight years, the franchise industry continues to show its resilience with great entrepreneurial spirit, contributing a healthy 11.6% to South Africa’s GDP. With an increase of 132 franchise systems from 625 to 757 (21%growth), an increase of franchise outlets from 31 050 to 35 111 (13% growth) and with turnover increasing by 6% from R465,27 to R493,19 billion rand, franchising remains one of the soundest business formats, structured to withstand economic challenges... Click here to view the full article

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