Tag: franchise

In September 2022, the Copyright Amendment Bill was passed by the National Assembly – giving South African artists, creators and entrepreneurs more benefits and rights, including receiving adequate remuneration.

South Africa’s franchise sector has shown tremendous resilience, first withstanding the heaviest effects from economic lens of the COVID-19 pandemic, secondly, looking at how global economies, suffered from the knock-on effect of the Russian war in the Ukraine.

Franchising worldwide continues having a 90% success rate as opposed to 10% for those starting a business on their own and whilst the sector in South Africa contributes around R721 billion to the country’s GDP. Yet there are still many businesses masquerading as franchises when in fact their business models are far from that of a franchise. 

Abigail Makhubele Absa Business Banking and Dr Ivor Blumenthal ArkKonsult discuss how the establishment of informal businesses has been driven by necessity for economic survival.

During the first quarter of 2018, South Africa’s gross domestic product (GDP) decreased by 2,2% according to Stats SA. This low growth trap followed a period of cautious optimism and highlights the need for creative thinking from all role players in the economy.

A franchise with a proven track record will probably have a lower risk and should therefore be an attractive investment. When investors are considering a franchise in the restaurant industry they should, however, evaluate the following pointers that could influence their decision:

With the economy seeing consecutive negative growth that has placed it in the grips of a technical - but very real - recession. It will...