Thirteen US-based franchise companies undertook a two-day trade mission to Johannesburg in late September during which they sought to link up 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 develop-ment and consumer goods markets as those offering the greatest opportunities for the establishment of new franchise partner-ships.

International Franchise Association US & International development senior VP Scott Lehr said at a media briefing last week 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 fran-chise 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 organisa-tions that have experience in and knowledge of the local industry,” he said.

While the majority of the US delegate com-panies 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 restaur-ant 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 localis-ation 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 sup- port the goals of BBEEE. How- ever, these companies do very little direct business with govern-ment 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 busi-ness 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.