Franchising: Taking South Africa by storm in 2015


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FASA

A recent franchisee survey conducted by the Franchise Association of South Africa (FASA) has revealed some interesting results by clearly indicating why the franchising failure rate is less than the overall failure rate of independent businesses. This comes ahead of FASA’s 20th International Franchise Expo (IFE 2015) which takes place from the 16 – 18th April at the Sandton Convention Centre.

According to Vera Valasis, Executive Director of FASA, the main purpose of the survey was to serve as a benchmark on the performance of the sector but more importantly on the attitude and satisfaction levels of the over 30 000 franchisees in South Africa. The results of the survey confirmed the sustainability of the sector, even in the face of recessionary times.

Revealing statistics indicated:

  • Three out of five franchisees had been in business for more than six years.
  • 39% of franchisees surveyed were in operation for longer than 12 years.
  • 60% of the franchisees surveyed were optimistic about the future of their businesses and claimed to have made an average gross profit of 32.6% in the last financial year.
  • Slightly more than half of franchisees who participated in the survey claimed to own one other business of the same brand where as one in ten claimed to own a franchise of a different brand.
  • According to FASA’s newly elected Chairman, John Baladakis, a multi-unit ownership trend is emerging and allowing franchisees to move from being one-store owners to building their own successful business empire.
  • Evidently, the largest franchise sector was the Fast Food & Restaurant category followed by retailing.

The International Franchise Expo is a platform for both established franchise concepts and new up-and-coming business opportunities that reflect the diversity of franchised business sectors.

Some familiar and established brands will include:

  • Taste Holdings (Domino’s, Pizza, Maxi’s, Zebros and NWJ Jewellers)
  • Spar
  • Subway
  • OBC Chicken
  • Melissa’s
  • Mike’s Kitchen
  • DIY Depot
  • Cash Converters
  • Real estate brands RealNet and Rawsons

New interesting concepts featured at the expo:

  • The Wunderbar
  • Bugman Pest Control
  • Defendoor
  • Inky Shop
  • Aluminium Network
  • John Dore Flooring
  • Men’s Clinic International
  • Plastic Ideas
  • Stretch-n-Grow

In addition, a Franchise Convention for FASA stakeholders will take place on the 15th April and two accredited training courses will run at the IFE.

This fully sold-out expo proves that franchising remains one of the safest and lucrative ways to be in business by stimulating small business development in South Africa.

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