FASA’s role in the franchise sector

The growth of franchising in South Africa has been phenomenal over the past 46 years and this business format continues to play a leading role in fostering entrepreneurship, in small business development and in job creation. FASA recognises the need to constantly evaluate the franchise system within South Africa, and to monitor the perception of members within the markets where they operate. Information gathered is crucial in assisting the association in completing the picture franchising’s continued success in South Africa.

Four reasons for remaining a member of FASA were, in order: to support franchising (37%), for networking/ professional relationships (31%), having access to member benefits (27%) and staying current on franchising information (25%).
For small to medium franchisors, supporting franchising was the key reason (39% each), while for large franchisors networking/ professional relationships was the main reason (33%). Large franchisors were also more likely than the smaller franchisor to having access to suppliers/ new products (21%). For medium-sized franchisors staying current on franchising information was an important reason for remaining a member (36%).
When it comes to activities in which FASA members participated in the year before, workshops/ networking events were, by far the most popular event (38%), especially among small franchisors (44%). The golf day attracted 23% of members, with attendance peaking among the large franchisors (46%).
One in five members attended the AGM. This number rose to one in four among medium franchisors.
The monthly virtual networking sessions and the Inani/ Services SETA initiative achieved 16% and 15% interest respectively. Large franchisors expressed a greater interest in the Inani/ Services SETA initiative than their fellow franchisors (21%).
Participation in the annual Franchise Manual and in ads/ web/ newsletters/ directory was at 14% and 11% respectively.
One in seven members (14%) attended the franchise convention and one in ten the IFE. The IFE was more popular among large franchisors (17%).
Franchisors were asked what role they would like to see FASA playing in the franchise industry in the future. The two most frequently mentioned roles were promoting franchise opportunities (32%) and protecting and growing the franchisee industry (29%). Two more relatively important roles were promoting the benefits of franchising (20%) and promoting collaboration within the franchise industry (17%).
FASA’s role varied by size of franchise system. Small franchisors’ opinions were close to the norm. Medium franchisors placed more emphasis on protecting and growing the franchisee industry (33%) and promoting collaboration within the franchise industry (25%). Large franchisors, on the other hand, wanted FASA promoting the benefits of franchising (33%) and creating a seamless communication platform (17% compared with 9% in the total sample).
FASA members were extremely positive about recommending membership of FASA to colleagues, friends or acquaintances, with 71% offering a rating of 5 out of 5 and a further 26% allocating 4 out of 5.