The Franchise Association of South Africa (FASA) says expanding finance access and supporting entrepreneurs are key to growing the sector. The Franchise Association of South Africa (FASA) is taking its push to expand business ownership to Gauteng, seeking to unlock growth in a sector worth nearly R1 trillion.
According to FASA, the franchise sector’s contribution to GDP increased from 10% to 15% over the past decade, while annual turnover grew to R1 trillion a year.
The 2023/24 survey recorded 727 franchise systems and 68,463 franchisees, employing 500,000 people.
The industry is largely locally developed, with 88% of franchise concepts originating in South Africa, presenting opportunities for home-grown brands to expand and entrepreneurs to participate.
FASA estimates that every 14 direct jobs support seven indirect jobs through supplier networks, highlighting franchising’s potential to stimulate economic activity broadly today.
The Gauteng FASA In partnership with Absa recently hosted a breakfast session at the Indaba Hotel in Fourways, bringing together entrepreneurs, SMEs, franchisors, investors and funders to explore how franchising can grow.
The Gauteng gathering forms part of a provincial initiative visiting the Free State in August, and Limpopo in September.
FASA sessions are aimed to introduce entrepreneurs to franchising opportunities, financial requirements and responsibilities of owning or expanding a franchise business.
Freddy Makgato, FASA chief executive and president of the Africa Franchise Association, said the initiative connects franchisors, franchisees, funders and owners.
However, expanding the sector’s contribution will require overcoming barriers that prevent more entrepreneurs from participating meaningfully.
For aspiring franchise owners, understanding financial requirements is an important first step. Franchisees must consider operational expenses, staffing, stock, and ongoing costs associated with running their businesses successfully.
FASA wants to broaden franchising access by connecting entrepreneurs with funders and explaining practical franchise ownership requirements thoroughly.
Makgato said expanding the sector would depend on reaching more entrepreneurs, financiers, and policymakers.
‘’If we want franchising to grow while creating job opportunities, it must reach more entrepreneurs, funders and policymakers in every province. That is why we are taking these conversations to the region,” Makgato said.
He added that access to finance and a supportive policy environment remain central to the growth agenda.
The breakfast sessions therefore provide a platform to discuss financing opportunities, business expansion, and the conditions required to establish and maintain sustainable franchise operations.
