Franchisees optimistic about SA's future

Johannesburg- About 72% of franchisees in South Africa reported an optimistic outlook about the future in the face of economic challenges, according to a 2015 survey by the Franchise Association of South Africa (Fasa).

According to Fasa, the franchise industry now contributes 12.5% to South Africa's gross domestic product (GDP) to GDP is now at 12.5%. In monetary terms the franchise market is worth an estimated R456bn.

There are 17 business sectors through which franchising contributes to GDP. The largest contributing sectors are quick service restaurants and restaurants (24%), retail (12%) and building, home and office services (11%).

Automotive products and services, childcare, education and training and business to business occupy 24% of the franchise market (9%, 8% and 7% respectively).

According to Fasa, there are currently 627 franchise systems or franchisors in South Africa. There are 39 119 franchise stores and most of these are operated by the franchisees, who form the backbone of the franchise industry. The majority of these outlets are located in Gauteng, the Western Cape and KwaZulu-Natal.

The total number of employees in the franchise industry is estimated at 329 245, with 34% being employed in retailing, 27% in fast foods and restaurants, 12% in real estate and 10% in the automotive  sector.

From a satisfaction perspective, 80% of franchisees reported good relations with franchisors and 73% indicated they are satisfied with their suppliers.

"The franchise sector is still setting the pace, even in challenging economic times," said Brienne van der Walt, head: customer segments and sectors at Absa.


ZAR/USD
16.70
(+0.49)
ZAR/GBP
21.16
(+0.25)
ZAR/EUR
18.94
(+0.33)
ZAR/AUD
11.66
(+0.11)
ZAR/JPY
0.16
(+0.52)
Gold
1807.13
(+0.40)
Silver
19.01
(+1.29)
Platinum
831.98
(+1.03)
Brent Crude
43.03
(0.00)
Palladium
1981.99
(+1.58)
All Share
55417.89
(-0.66)
Top 40
51154.08
(-0.74)
Financial 15
10472.31
(+1.28)
Industrial 25
76134.69
(-1.67)
Resource 10
52483.78
(-0.20)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1969 votes
I am taking a hit, but should be able to recover in the next year
23% - 2580 votes
My finances have been devastated
34% - 3832 votes
It's still too early to know what the full effect will be
25% - 2760 votes
Vote