Franchise sector opens up the heart of any economy

Muzi Shinga, 41, is the owner of three Debonairs Pizza franchises in uMlazi Mega City, Kwa-Mnyandu Mall and Philani Valley Mall, all in uMlazi.

Muzi Shinga, 41, is the owner of three Debonairs Pizza franchises in uMlazi Mega City, Kwa-Mnyandu Mall and Philani Valley Mall, all in uMlazi.

Published Jan 31, 2019

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DURBAN - Despite a struggling economy, the franchise sector has grown steadily and continues to make a strong contribution to the South African GDP across sectors, this is according to the Franchise Association of South Africa’s (Fasa) 2018 survey.

With an estimated turnover of R721 billion, the sector contributes 15.7% to the total South African GDP, has over 850 franchised brands and about 41000 outlets.

“The franchise system has weathered the economic downturn better than other business models,” said Vera Valasis, Fasa executive director.

“The continued growth of new franchise concepts proves that franchising is the entrepreneurial heart of any economy.”

Valasis believes that on a global front, our changing world is opening up opportunities on the franchise horizon. “As spending patterns change, entrepreneurs will be looking at business sectors where there is an appetite for franchising and flourishing new industries will start to see the light.”

- THE MERCURY 

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