FRANCHISE SURVEY RESULTS SHOW FRANCHISING LEADING THE WAY

The Standard Bank Franchise Factor – 2008 survey, sponsored by Standard Bank and undertaken by Franchize Directions, looked at the status and growth of the franchise sector in South Africa over a two-year period and measured turnover from March 2007 to end February 2008.

Some of the positive results include:

• A 37% increase in turnover to R256.46 billion.
• Number of franchise systems = 531 systems,
  • an increase of 15% from 470 in 2006
• Net growth in business units = 3 567 new units,
  • an increase of over 14% to 28 620
• 32% of those units are PDI (previously disadvantaged) owned.
• Franchising employs 461 218 people,
  • a growth of 70 769 between 2006 and 2008.
• Franchising enjoys a sustainability rate of almost 96%.
• The sector’s contribution to GDP was 12.57 percent.

Failure rate of franchisees is at a low 3%

SURVEY HIGHLIGHTS GROWTH IN KEY FRANCHISE SECTORS

According to the Standard Bank Franchise Factor – 2008 survey, the “champions” in the various sectors in terms of growth were:

• Retail with 22 new franchises
• Automotive with 14 new franchises
• Restaurant with 14 new franchises
• Real Estate, Health & Beauty, Education & Training with 11 new franchises
• Building, Office & Home services sector with 26 new franchises.

Freddie Oosterhuis

Founding Director & CEO – Walco Enterprises
NLP|NS|ACMC Certified Meta-Coach™