Franchisees on the Frontline

Inside the minds of South African franchisees, FASA’s franchisee survey reveals top challenges and insights that will help you navigate your decision to invest in a franchise, as well as top advice for getting the most information from your due diligence.


Franchisees on the Frontline

Franchisee’s top sector picks

Not surprisingly, the densest concentrations of franchisees in South Africa are in the country’s biggest franchise sectors. The fast food and restaurants sector generates revenues of R8,5 billion per annum, with retail close behind with R8,01 billion in revenue.

  • R8,01 bn – Revenue generated by the retail sector
  • R8,5 bn – Revenue generated by fast food and restaurants.

Top sector picks in south africa

 

With increasing urbanisation and the rise of the middle class, the majority of franchisees can be found in shopping centres in Johannesburg. The average size of their leased spaces are 358m2 at an average cost of R140/m2, with an average annual escalation of 8,5%.

The South African franchisee survey published in November 2014 forms part of The Franchise Association of South Africa’s independent surveys of the franchise industry. For the past two years the focus has been on franchisors, with 2014 being the first year FASA has supplemented the survey with a franchisee questionnaire.

  • The survey was conducted by Research IQ on behalf of FASA and sponsored by Sanlam.
  • Interviewing began in May 2014 and concluded in November 2014.
  • Franchisees interviewed were all listed on the FASA database.
  • Of 11 000 FASA franchisee members, 378 responded with varying levels of questionnaire completion.

With increasing urbanisation and the rise of the middle class, the majority of franchisees can be found in shopping centres in Johannesburg. The average size of their leased spaces are 358m2 at an average cost of R140/m2, with an average annual escalation of 8,5%.   The South African franchisee survey published in November 2014 forms part of The Franchise Association of South Africa’s independent surveys of the franchise industry. For the past two years the focus has been on franchisors, with 2014 being the first year FASA has supplemented the survey with a franchisee questionnaire.  •	The survey was conducted by Research IQ on behalf of FASA and sponsored by Sanlam. •	Interviewing began in May 2014 and concluded in November 2014. •	Franchisees interviewed were all listed on the FASA database. •	Of 11 000 FASA franchisee members, 378 responded with varying levels of questionnaire completion.

 

Tracy Lee Nicol
About the Author
Tracy-Lee Nicol is the managing editor of Franchise Zone Magazine and deputy editor of Entrepreneur Magazine. She studied her Masters degree in Art History and Visual Culture at Rhodes University and spent the next two years working and travelling in Asia. Her love of people, business and teaching is reflected in telling the stories of entrepreneurs, franchisees and franchisors, inspiring others to take the leap to being their own boss and bringing about positive change in South Africa.

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