Where South Africa’s Franchises Are

South Africa’s franchise industry has remained stable from 2013 to 2014, despite the drop in the overall number of concepts.


Where South Africa’s Franchises Are

There has been negligible change in spread and density across the South African landscape with just the Western Cape and Northern Cape increasing by 1%. Gauteng, Western Cape and KwaZulu-Natal remain popular hubs for franchising as the urbanised middle class increases.

In 2004 the black middle class comprised 1,7 million individuals and has since grown to 4,2 million in 2013 with a spend of R400 billion annually.

 

Related: Who’s The Best of the Best?

Consequently, 60% of franchises are based in shopping centres and malls, 52% in high streets, 28% are home-based, and 10% are in industrial areas.

1 433 –The net gain of franchises in 2014, with 90% of the 31 050 franchised outlets being franchisee owned (a drop of 4% from 2013)

  • 60% –Shopping centres / malls
  • 52% –High streets
  • 28% –Home-based
  • 24% –Industrial
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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