Franchising’s massive contribution to global economic output

franchising survey

Did you know that South Africa franchising’s economic output as a percentage of GDP ranks in the top five worldwide? That’s correct… with its contribution to GDP at 15,3% (in 2017), South Africa’s franchise sector is up there with France, Australia, New Zealand and the Netherlands.

The success of South Africa’s franchising sector has put us squarely amongst the best performing franchising countries in the world, according to statistics compiled by the World Franchise Council’s 2017 Survey on the Economy Impact of Franchising Worldwide, created to monitor the global franchise landscape.
The phenomenon of franchising continues to grow worldwide with most global markets receptive to the business model which provides entrepreneurial-minded business people with an opportunity to run their own business.

  • Approximately 2 million franchised businesses sustain over 19 million jobs globally.
  • On average, franchising contributes 2.7% to national GDP’s to the world economy of members in the World Franchise Council.
  • Contributing over $1.75 trillion per annum, the United States leads the way, with over $650 billion of revenue generated per year.

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Get your online presence ready for the festive season

Festive season online

Does this sound familiar? You go online to buy that one-of-a-kind dress, that new juicer or presents for Christmas and spend the next few hours struggling to navigate the site, are frustrated with the slow speed and then when it comes to paying, the system crashes.

Now that South Africa has climbed onto the pre-Xmas frenzy of Black Friday, Cyber Monday and all the other incentives to buy online, every business with an online presence must make sure that their technical side is working optimally and is ready to handle any eventuality.

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Franchise industry survey, inviting you to participate


FASA is appealing to all franchisors and franchisees out there to participate in this year’s Franchise Survey sponsored by Sanlam which examines this important industry that to date contributes a healthy R721 billion equivalent to 15,7% to the country’s GDP. Given the socio-economic and political influences, will that figure drop or grow and what other factors make up an industry that continues to be a major player in South Africa’s economy? If you are a franchisor or a franchisee you have to be part of this definitive survey that tracks and celebrates one of the strongest business arms of the economy.

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Coffee is powering our world


Which nation loves coffee the most? With billions of cups of coffee consumed worldwide on a daily basis, which nation loves coffee the most?

Given that coffee is grown in tropical, hot countries you would think that countries like Brazil, which has been the largest exporter of coffee for more than 150 years or Vietnam or Colombia who come in 2nd and 3rd, would be the biggest consumers but you would be wrong. According to the International Coffee Organization (ICO) it is the Scandinavian countries that drink the most coffee. Finland tops the list drinking 12kg of coffee per capita per year, followed by Norway, Iceland and Denmark. It seems the colder the climate the more coffee is consumed.

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Women now drive the world economy


A good ten years ago, the Harvard business review noted that ‘women now drive the world economy’ although a survey by Boston Consulting Group at the time found that women felt ‘vastly underserved’. Has anything changed since then?

With women driving between 70 and 80% of all consumer purchasing, it’s time that women were taken seriously and not be subjected to the ‘make it pink for the female market’ syndrome. Today women tend to control family finances and make purchasing decisions, including for children and extended family.

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The gap closes in the battle of the supermarkets


The 2018 South African Customer Satisfaction Index (SA-csi) for Supermarkets, conducted by Consulta shows that the gap between the different brands’ service is closing with Woolworths marginally maintaining the best overall customer experience among South Africa’s big five supermarket brands that includes Pick n Pay, Spar, Checkers and Shoprite.
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Sanlam confirms its sponsorship of FASA’s Franchise Surveys

Sanlam has, for the fifth year, confirmed its sponsorship of the Franchise Association of South Africa (FASA)’s Franchise Surveys. The surveys are an important barometer that track the success of this unique business system which in the latest survey shows an estimated turnover of R721 billion equivalent to 15,7% of the total country’s GDP. Its 865 franchise systems support over 45 000 outlets operated by franchisees who in turn employ 369 573 people.

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Survey shows SA has the sixth most shopping centre space in the world


A study by MSCI on behalf of the South African Council of Shopping Centres (SACSC) shows that the current size of the South African retail market is estimated at around 23.4 million square metres of gross lettable area (GLA) across 1 959 individual shopping centres – ranking it in 8th position among the 43 countries forming part of the survey – just behind Australia and France. The top three countries in terms of shopping centre supply – the US, China & Canada – contribute a combined 77% to the overall figure.


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The future of shopping centres in the spotlight


Whilst a survey in 2017 by Visa showed that South African consumers still prefer doing their shopping in malls, and a recent study by MSCI on behalf of the South African Council of Shopping Centres (SACSC) shows South Africa as having the sixth most shopping centre space in the world, FASA’s Franchise survey does show a decrease in the number of outlets in shopping centres and malls.

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Survey Shows SA Entrepreneurs are struggling


Although FASA’s recent survey, sponsored by Sanlam, shows that entrepreneurs with new franchise concepts grew from 843 to 865 and opening 3 181 outlets in the past year, the entrepreneurial environment has become more difficult.

Seed Academy undertook the study of more than 1,000 entrepreneurs and found that the key challenges they faced included the inability to raise funds, finding customers, wearing too many hats followed by lack of guidance, slow sales, customers paying late and the unpredictability of business conditions across the country.

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