Thirteen US-based franchise companies on Friday ended a two-day trade mission to Johannesburg during which the firms had looked to connect with appropriate local candidates that could develop franchises in the South African market.

The mission, organised collaboratively by the US Embassy’s Commercial Service and the International Franchise Association, which represents 1 300 US franchise companies, identified the energy, infrastructure development and consumer goods markets as those offering the greatest opportunities for the establishment of new franchise partnerships.

International Franchise Association US & international development senior VP Scott Lehr said at a media briefing on Friday afternoon that the organisation’s role was to assist US companies in their expansion drive into foreign markets.

“The motive for this mission is to connect US brand representatives with potential franchise candidates and to enable existing US companies that are active in the market to share their experiences,” he said.

Lehr clarified that the targeted “franchise candidates” were established corporate, high-net-worth individuals, and master franchise contenders, rather than smaller organisations offering single-unit opportunities.

“We are looking for people and organisations that have experience in and knowledge of the local industry,” he said.

While the bulk of the US delegate companies present at the trade mission were those active in the food and beverage industry, two were involved in the car rental and sales industry, while one was looking to penetrate the local education services market.

These companies were the Hardees restaurant chain; Dairy Queen; Schlotzsky’s Deli; Auntie Anne’s Pretzels; Moe’s Southwest Grill; Great American Cookies; Pretzelmaker; Marble Slab; Johnny Rocket’s restaurant chain; the Wing Zone; Hertz Equipment Rental; Hertz Cinelease; and Tutor Doctor Systems.

Responding to questions around localisation and broad-based black economic-empowerment (BBEEE) considerations, US Embassy Commercial Service deputy senior commercial officer Brent Amdahl emphasised that franchise partnerships would also play a developmental role in the South African economy.

“Our companies understand the implications of operating in sub-Saharan Africa and support the goals of BBEEE.  However, these companies do very little direct business with government and would, therefore, not be [constrained] by State supply chain [regulations],” he commented.

Amdahl added that there were currently some 600 US companies of various sizes active in the South African market.

Following the trade mission’s visit to South Africa from September 26 to 28, it would continue on to Nairobi, Kenya, after which it would end its business development drive in Lagos, Nigeria, on October 4.

“Clearly, US franchises are keen to tap into Africa’s growing hunger for recognisable consumer brands,” he concluded.