THE domestic franchise sector showed signs of growth in 2015, but has begun to take some strain in the challenging economic environment. Franchise Association of SA (") chairman Naas du Preez said while the industry had grown, it had not been at the same pace as in previous years. The fourth survey by Fasa, sponsored by Sanlam, showed franchise turnover grew 6% in 2015 to R493bn. Franchise outlets increased 13% to 31,050. "The marked increase in the number of franchise systems and outlets could well be attributed to the inordinate number of new and international brands that have established themselves in SA in the past two years. This has not come with a concomitant increase in turnover, however, which could be attributed to the lack of growth in the South African economy," he said. Burger King launched in SA in 2013. Krispy Kreme, Dunkin Donuts and Starbucks are other franchise concepts that opened in SA in the past two years. Du Preez said the hiccups in the economy had led to bus...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.