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Overview of franchising in South Africa
- Franchising composes around 12,5% of South Africa's GDP and is a substantial contributor to South Africa's economy. It grows annually by approximately 25%.1
- The history of South African franchising goes back to the mid-1960s when George Halamandaris established Steers and a number of other brands.
- South African franchising is unique due to the fact that around 90% of franchises are based on locally developed ideas.
- Among the most iconic franchises in South Africa that are household names are: Steers, Spur, Nando's, Pick 'n Pay, Mugg & Bean, Chicken Licken and Debonairs.
- Franchising has a positive spin-off for neighbouring countries as well. Pick 'n Pay for example has opened in Swaziland and Botswana.
- Shoprite, a South African retail franchise, has operations in 15 African countries outside of South Africa.
- Presently there are around 550 franchises in South Africa.2
Sources:
- GEP 2009
- Franchise Directions 2008
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