THE BIZ potential, given that franchising accounts for up to 75 % of GDP in some developed markets.
For Karen Keylock, National Retail Services Manager at Nedbank Commercial Banking, these figures highlight the model’ s resilience.“ Part of what you are investing in when you join a mature franchise system is a proven operation system, making it a recession-resistant model – especially relevant in today’ s economy,” she says.
The data backs her up: 89 % of franchisees report breaking even within their first year of operation( up from 69 % in 2019), compared to the two to three years it typically takes independent businesses to reach profitability.
“ It’ s a remarkable achievement,” Keylock adds,“ given the extreme turbulence businesses have had to endure over the past few years.”
Brand recognition vs creative freedom
Wantenaar believes that in today’ s competitive F & B and hospitality market, brand recognition and creativity aren’ t opposing forces – they’ re complementary.
“ A strong brand provides trust, credibility and customer reach,” he explains.“ It shortens the ramp-up period and helps you operate competitively from day one.”
But even within a franchise system, creativity thrives when local teams interpret the brand through their own cultural and market lens.“ Personalisation, authenticity and a sense of place increasingly define the modern guest experience,” Wantenaar notes.
Independent operators, meanwhile, start from a blank slate. That freedom allows them to experiment and evolve, but it also means they must work harder to build visibility, trust and consistency over time.
Support systems vs self-reliance
“ Franchising gives you the manual – independence makes you write one,” Wantenaar says.
Franchisees benefit from robust training programmes, established technology and brand systems that make excellence repeatable. It’ s a framework designed to help teams succeed.
Independent owners, however, thrive on autonomy. They learn by doing, adapting rapidly to challenges without a corporate safety net.“ When it works,” Wantenaar adds,“ it’ s deeply fulfilling because it reflects the character and culture of the people behind it.”
This structure-versus-freedom dynamic extends to financial support too. As Keylock explains:“ Getting a franchise up and running can involve hefty upfront costs and the need to survive on break-even books before your outlet takes off. Fortunately, financial institutions recognise that franchises are relatively safe opportunities, so financing is readily available.”
According to the FASA survey, average working capital requirements sit around R750 000 for retail franchises and R400 000 for automotive service outlets – a manageable threshold given the access to credit and brand support that franchising offers.
Finding the right franchise fit
Keylock cautions that personality fit is as important as financial readiness.“ If you’ re someone who struggles to follow someone else’ s direction, franchising may not be for you,” she says.“ But if you value being your own boss while benefiting from a proven product, it can be an excellent path.”
Keylock advises potential franchisees to look beyond the glossy brochures. Research is key – attend trade shows, read independent reviews and, most importantly, speak to several franchisees who are already in the system, she recommends.
The FASA study also paints a positive picture of the sector’ s long-term stability: 53 % of franchisees have been in business for more than a decade, and 80 % own multiple outlets. Satisfaction levels are high, with nine out of 10 franchisees expressing strong confidence in their franchisor and returns.
“ Franchising certainly offers a safer way of getting into business and becoming financially independent,” Keylock concludes.“ The value of a recognised brand and the support of an established franchisor are significant, but doing your homework thoroughly upfront is the key to long-term success.”
Guest expectations
No matter whether you decide to be a franchisee or an independent, customer expectations remain central. The difference lies in delivery.
“ In a franchise, guests expect precision: consistency, reliability and the familiar experience they trust,” Allan explains.“ In an independent, they expect discovery: originality, connection and a sense of place. Either way, you must deliver consistently.” TT
2026 / TRADE & TASTE 143