Tag: franchising

While COVID-19 put the brakes on the economy, the post-pandemic recovery has almost been stymied by the ongoing Russian war on Ukraine and the impending fears of a US recession, contributing negatively to economies around the world. Through the most challenging hurdles, however, the franchise sector in South Africa has remained steadfast in its goals to grow the economy and create jobs.

The advent of COVID-19 has led to people losing their jobs and seeking ways of securing their financial future against the current disruptions. Rather than wait for employment opportunities, people are taking matters into their own hands.

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. 

Almost every entrepreneur - at some point in their journey - considers going into franchising as a guaranteed route to attaining business success. Despite the sector having a higher success rate compared to its counterparts, franchising has its pros and cons and will not necessarily be suitable for every entrepreneur.