The franchise industry in South Africa generates approximately R734 billion to the economy, according to the Sanlam Franchise Survey conducted in 2019. Furthermore approximately 500 000 employees enjoy permanent employment nationwide in its 48 000 franchised outlets and 824 franchise companies – contributing just under 14% to the country’s GDP.
Since the implementation of the COVID-19 emergency measures around 94% of the industry has not been trading, with the exception of mostly food retailers. This has had a devastating impact on the industry and it is feared that unless more financial aid is provided some 15% i.e. 75 000 jobs could be lost in the industry.
The association has informed its members of the government gazette published on 24 March 2020 regarding the measures taken by government to assist businesses financially through the exemptions for the retail property sector, the UIF emergency funding application, the SMME funding through sefa as well as other emergency relief measures as and when they are announced.
However, the following matters are of grave concern and the association, on behalf of its members, has sent an urgent letter to government through Minister of Trade & Industry, Ebrahim Patel, to consider the following:-