The Franchise Association of South Africa with ABSA run a project to conduct a survey with the purpose of getting a clear indication of the challenges franchisors and franchisees faced and more importantly what lies ahead for the future of this important sector, after four years of difficult times.
The result shown that most franchisors were optimistic about the success of their businesses (at 98%) and franchisees floating about the future of their businesses: 88% expecting to see growth in this year and it was interesting to see the levels of support given by the franchisor.
The survey also showed that very large franchisees benefit from more training in marketing (92% T2B), medium franchisees from new product development (87% T2B) and on-the-job training (85% T2B), training at another franchisee’s outlet (87% T2B) and time spent training (87%); while 94% (T2B) of small franchisees benefit from a significant time spent training.
Effective communication emerged as the primary factor contributing to a positive rating for the relationship with the franchisor. It garnered above-average recognition among franchisees in specific sectors, including automotive products and services (67%), building, office, and home services (65%), and retail (58%).
Quality training and workshops were perceived as a valuable advantage provided by franchisors, especially in the sectors of building, office, and home services (52%), fast food and QSRs (43%), as well as retail (49%), surpassing other categories. Notably, small, and medium-sized franchisees were more inclined to appreciate the training provided by their franchisors (44% and 46%, respectively), while large franchisees emphasized the significance of their franchisor's communication (56%).
In relation to the franchisee's size, the survey revealed that smaller franchisees expressed a desire for increased support in marketing their businesses (22%). In opposition, very large franchisees sought additional assistance with on-the-job training (26%), requested more time dedicated to training (14%), and expressed interest in the ability to train at another franchisee's outlet (13%). Most franchisees (56%) indicated that they did not perceive a need for any additional support.
Source: Franchise Association of South Africa (FASA).