SA franchise industry explores Africa potential
by TINTSWALO BALOYI
JOHANNESBURG – STAKEHOLDERS in the South African franchise sector have met in Johannesburg to discuss the potential of franchising in Africa.
First National Bank, the financial firm, organised the event under the auspices of the Franchise Leadership Summit.
The summit came on the back of South African companies are increasingly seeking growth opportunities north of the border as a hedge against lackluster domestic prospects.
According to Morne Cronje, Head of FNB Franchising, the franchise industry has evolved due to global influence and trends.
“While the industry is expanding locally and internationally, we find there is an increasing need to keep abreast with the latest trends but at the same time maintain brand presence in the market.
“With the reliable support systems and ongoing research, franchising is seen as an industry with no boundaries and if successful it could be a profitable business venture in any industry,” said Cronje.
Jason Muscat, FNB Economics Industry, said despite the abundant potential, there are many critical considerations when venturing into new markets, chief among them suitability of the offering.
“Too often, Africa is thought of a single homogenous country, where brands that have thrived in South Africa can easily be introduced to new countries, and enjoy the same success.
“Both franchisors and franchisees will also have to contend with varying levels of infrastructural development, different regulatory and tax regimes, as well as the impact of foreign exchange movements,” Muscat said.
The founder of Mugg and Bean, Ben Filmalter, was upbeat the prospects of the local franchising industry.
“The franchising industry in this country has everything to be proud of. It is a tough market but at the end of it all, the industry here is doing a splendid job,” he said.
– CAJ News
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