The Franchise Association of South Africa (FASA) is championing franchising as a proven engine for entrepreneurship — especially in township and rural economies.
Ahead of the FASA National Conference & Expo 2026, scheduled for 19 February 2026 in Boksburg, CEO Freddy Makgato highlighted how franchising systems, structured support, and partnerships are making entrepreneurship more accessible to first-time business owners.
“Franchising is visible all around you,from new diners to buildings under construction,” Makgato told Vutivi Business News.
“You don’t need to start a business from scratch, the system is already there. That’s the whole idea of a business system that is proven, structured, and replicable.”
By providing a ready-made framework, franchising helps entrepreneurs avoid many of the pitfalls common to start-ups, including lack of experience, unclear operational processes, and limited access to funding.
According to FASA, the sector is supporting nearly 500,000 direct jobs and accounting for approximately 5% of national employment. Makgato said the 2026 conference will provide a critical platform for tackling South Africa’s unemployment crisis.
“Franchising is far more than a business model; it is a catalyst for large-scale job creation,” he said.
Makgato added that franchising’s structured approach offers stability and scalability, with more than 70% of employees drawn from previously disadvantaged groups, contributing to economic transformation.
“By systemising success, we are building sustainable businesses that deliver real impact through long-term employment,” he said.
A central focus of the 2026 conference is inclusive entrepreneurship, with strong emphasis on women, youth, and SME participation. With 88% of franchise systems locally owned, franchising continues to offer a uniquely South African pathway into business ownership.
“Franchising provides a ‘business-in-a-box’ solution,” Makgato explained.
“It combines proven systems with intensive education, skills development and ongoing support that’s particularly for entrepreneurs who may not have had prior ownership experience.”
To make franchising more accessible, FASA is championing social franchising and micro-franchising initiatives, particularly in township communities. These programs provide affordable entry points for small entrepreneurs, enabling them to operate viable businesses without prohibitive costs.
Makgato pointed to examples such as tutoring services, food outlets, and poultry franchises that have thrived in lower-income areas.
“These models are small and practical, but they are designed to grow into long-term, sustainable businesses,” he noted.
Among those exploring franchising are Thabo Mokoena, a recent Accounting graduate from Soweto looking to start a food outlet, and Naledi Kgosi, a teacher from Tembisa interested in launching a tutoring franchise.
“I want to provide jobs and create something for my community. Learning about franchising will give me the guidance I need and I don’t have to figure everything out on my own”, Mokoena remarked.
Kgosi added that she had interests in franchising too. “With the mentorship and training from a franchise, I feel I can actually do it.”
During the full-day program at the FASA Conference & Expo 2026, sessions will focus on key areas affecting franchise growth, including policy and finance, digital innovation and technology, operational excellence, sustainability, and labour compliance.
Structured mentorship is a hallmark of franchising, Makgato stressed.
“Most small businesses fail because owners lack experience or guidance. In a franchise, entrepreneurs receive training and mentorship from the start,” he said.
FASA support franchisees in operational procedures, compliance, and management, helping them run profitable and legally compliant businesses.
By partnering with local municipalities, banks, and sector education authorities, the conference aims to provide entrepreneurs with access to funding, training, and regulatory support.
