Valasis, who has managed franchises for household brands Milky Lane and Juicy Lucy, said that while there were many advantages to franchising, small business owners needed to be aware of all the aspects before signing up.
There are more than 800 franchise businesses with 42000 outlets in South Africa, which contribute 15.3% to the gross domestic product.
“It is an important player in our economy but because it is so fragmented, it is often overlooked,” Valasis said. “Franchises employ 350000 to 400000 people in permanent jobs, excluding seasonal casual staff in fast food restaurants. Every franchise outlet employs between eight and 12 employees,” she said.
She said some of the advantages included the comfort of having the support of the franchisor and the benefit of being able to tap into the expertise of the rest of the team.