Messages from FASA's chairman 2025/2026

Ayabulela Njingolo – Accountant & Business Developer – OBC Group

Franchising has long been recognized as a gateway to entrepreneurship, providing a unique opportunity for individuals from diverse backgrounds to venture into business ownership with a structured support system. In this day and age, where economic inclusion and transformation has become a mandate proposed by the South African government, franchising offers a proven model for success, enabling industry participants and interested investors to take their first steps with confidence and guidance, in becoming entrepreneurs.

Unlike starting an independent business from scratch, franchising presents a comprehensive blueprint that minimizes the risks typically associated with starting a business. The franchisor, as a partner in the journey, provides established operational systems, proven products or services, and ongoing support, ensuring the franchisee is equipped to overcome challenges. This collaborative approach empowers individuals with limited business experience or resources to build thriving enterprises while contributing to economic growth.

In an industry that has spanned over fifty years, franchising has expanded into a multitude of different industries and sectors ranging from automotive to property, from fast food & restaurants to retailing; from health & beauty to education – providing a vast landscape of entrepreneurial opportunities, giving any interested persons the chance to get into a business best suitable to their interests and possible areas of expertise.

2025 holds immense potential for driving innovation, stimulating job creation, and fostering sustainable development across the country. With the right support from key stakeholders, particularly government and private institutions, the franchising model can unlock growth, especially for youth and emerging entrepreneurs.

Youth unemployment remains a pressing challenge in South Africa and other parts of the world. However, I believe that franchising offers a viable solution by equipping young people with entrepreneurial skills, industry training, and access to finance. More than simply running a business, youth franchisees are given the tools to contribute meaningfully to their communities through job creation and localized economic activity.

Together with relevant stakeholders, there are great opportunities to spread awareness to a generation that carries the potential future of the country by facilitating an accessible and empowering career path, thus inspiring the next generation of innovators and leaders. Participating in franchising and building the relevant relationships within the sector allows for a positive impact on the country from the fertile stage of youth which in the long-term addresses unemployment across the country.

To achieve this, increased collaboration with existing franchisors, government institutions and financial partners is crucial. By providing incentives such as funding support, mentorship programs, and incubation hubs, government can create an environment that encourages entrepreneurial participation, particularly among historically disadvantaged individuals. These initiatives would not only stimulate business ownership but also drive local economic growth, supporting goals of sustainability and equity.

Franchising also has the potential to foster innovation, particularly in sectors such as retail, services, logistics, and green technologies. As industry evolves, emerging franchise concepts aligned with modern consumer demand such as tech-driven solutions and environmentally conscious businesses will further enhance its appeal. Innovation within the franchising model ensures that franchisees remain competitive while adapting to the needs of a changing economy and market participants, specifically the youth. Thus, prompting the importance of skills transfer and access to industry knowledge is vital to the sustainability and growth of participants.

Looking ahead, 2025 must be seen as a year of growth and inclusiveness in franchising. The industry’s ability to bridge gaps for aspiring entrepreneurs, particularly women and youth, cannot be overstated. By supporting and nurturing talent through education, funding, and mentorship, franchising can become a catalyst for meaningful economic development and transformation.

I believe that franchising stands as a beacon of opportunity for those seeking a structured and supportive path into entrepreneurship. By prioritizing youth engagement, innovation, and collaboration with government, the industry can unlock untapped potential, creating prosperity for individuals, communities, and the nation at large whilst simultaneously attacking the dark cloud of poverty and unemployment that plagues our country. The road ahead is promising, and with collective effort, franchising can play a transformative role in building a brighter and more sustainable future especially in the context of South Africa.