Buying a franchise is an investment in your future, but as with any major decision, you should thoroughly research the industry, the model and the pros and cons of owning a franchise. In this day and age of volatility and uncertainty, more and more South Africans are looking to invest their time, money and efforts in a tried-and-tested business model that works. According to the Franchise Association of South Africa, the franchising sector’s turnover has reached R300-billion, and it contributes signicantly to the country’s gross domestic product (GDP). The sector’s good performance is reflected in the industry’s 627 different franchising systems.
South Africa has more than 31 000 franchising outlets, which service 17 business sectors, including fast food and retail. Franchising contributes nearly 10% to the country’s GDP, and employs more than 323 500 people throughout the country. John Baladakis, chairman of the Franchise Association of South Africa, says: “Franchising is a much lower risk investment with only a 10% failure rate, as opposed to up to 90% in independent businesses.”