The future of franchising in 2021
The franchise sector, at the end of 2019, was holding its own in what was a trying economic environment. According to FASA’s 2019 Franchise Survey, sponsored by Sanlam, the franchise sector contributed an estimated turnover of R734 billion, equivalent to 13,9% to the country’s GDP through its over 800 franchise systems, close to 48 000 franchised outlets and a workforce close to half a million.
The entire world seems to have been turned on its axis since then as many industries are now forced into unfamiliar territory and left to either fight or flight in this seemingly post-apocalyptic era. What the pandemic of 2020 did was fast track the upcoming 4th Industrial Revolution strategy and catapult us to making changes far sooner than expected and change the way we live and do business.
During a unique time such as this, entrepreneurs and employees alike are considering their next business plans, and how to best be successful in the future. Fortunately for those who are ready to take the next step, history demonstrates a positive outlook as entrepreneurs are often born after a recession or major historical event.
Whilst the picture for 2021and beyond will prove to be vastly different, one of franchising’s biggest attributes is its ability to adapt and innovate. As the world struggles to recover economically, businesses worldwide will be hard pressed to review, regroup and recover. Franchises in particular, by virtue of their ‘strength in numbers’ and their solid support mechanisms, are showing signs of recovery and the sector remains one of the most resilient. The franchise sector is leading the way in its recovery and globally, we are seeing the determination of both franchisors and franchisees to overcome the challenges and forge ahead with revival plans.
Every cloud has a silver lining, goes the saying and even in the midst of a pandemic, there are those entrepreneurs that have taken new ideas and forged a new path to business success. As we all adjust to the new normal, consumer behaviour is changing the way businesses are operating, and impacting how consumers will interact with brands in the future as businesses continue to re-open. Even though the initial forecast for the business market looks uncertain, recent predictions are that the economy will recover faster than before. This means that thousands of people, many of whom will be seeking new opportunities, will be able to choose franchising as a safer way to ‘go into business by themselves’.
If you were among the many people laid off or you believe you need a change, there are still substantial franchising opportunities to consider. These franchises are not only surviving today but projected to grow tomorrow. Franchises offer a corporate support team that will assist the franchisee throughout the entire process. Not only are you getting a turn-key blueprint business that has been tried and tested, especially vital during these unique circumstances, but you will be getting ongoing support to ensure that have the best chance for success.
By choosing a franchise, franchisees are still able to be their own boss and make their own decisions, but without the stress of starting a business from scratch. Another consideration for those looking to start a new business is what type of franchise model will flourish during the COVID-19 era, but will also offer longevity. Start your search for a new beginning…. a new career… a new business opportunity by visiting the FASA website at www.fasa.co.za and begin a new chapter.
To protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation.
