The franchising industry contributed 13.4% to the country’s gross domestic product (GDP) in 2017, Franchise Junction CEO Thys van Zyl said on Thursday.
Addressing delegates at the 12J Marketplace conference, in Johannesburg, he pointed out that the franchising industry not only contributed to GDP, but also created jobs.
“Two years ago, the franchising industry contributed 11% to GDP and last year about 13.4%. The franchise industry is growing at a fast pace in South Africa, and is a major contributor to the country’s economy,” he noted.
He said the average South African consumer spend within this market was easy to understand, pointing out that, typically, 56% of consumer spend per month goes into the franchising industry.
He pointed out that, last year, the turnover for the franchising industry in South Africa was R587-billion.
“These statistics only come from people who contributed to the survey, so the actual amount could be much higher,” he stated.
He added that two out of four new franchises break even in the first year of investment, noting that the franchising market was risky, and it that it needed to be managed correctly to make it successful.