How Do Franchisors See The Future.
Planning the blueprint of how franchisors and franchisees see the future is what the franchise sector needs to spur it on to greater heights. Having learnt the hard lessons from the past five years, every franchise system needs to take on board the lessons learnt, harness the power of the collective and face the future with a new determination to show that they can turn the tide. What the franchise survey establishes without a doubt is that franchising offers proven models, brand recognition and a lower-risk investment.
Franchisors that strengthened their business systems and supply chains during the pandemic should be highlighting those strengths, elaborating on steps taken to mitigate the risks, introduce new strategies and publicise how franchisees were supported.
On the back of such a strong survey of the franchising sector, that is prepared to safeguard its position as a significant contributor to the country’s economy and is willing to play its part to keep the wheels of business and entrepreneurship turning, FASA and the franchise community must call on government to now do their part in rectifying the debilitating state of the country for the sake of the economy, its citizens and the future of South Africa.
• Franchisors continue to be optimistic about business growth continues to strengthen, and the expectation that turnover will grow in the next financial year is almost unanimous.
• The positive attitude expressed by franchisors is echoed by franchisees with 88% believing that the turnover in their businesses will grow in the following year.
• The franchisees that were especially optimistic about future growth could be found in the following categories: automotive products and services (100%), building, office and home services (98%), business-to-business services (97%), childcare, education and training (94%) and real estate (100%).
• Franchisees in dine-in restaurants (24%) and fast food and QSRs (26%) were less optimistic, believing that turnover would not change in the next financial year to a greater extent than franchisees in other categories.
• Taking the size of the franchisee into account, it was noted that small franchisees would like more support in marketing their businesses (22%), while very large franchisees requested additional support with on-the-job training (26%), more time spent training (14%) and being able to train at another franchisee’s outlet (13%)
• 56% of franchisees said they did not require any further support.
It seems that the key to future success also lies in having a strong base of existing franchisees that are well-equipped and supported to handle any future challenges, and a head office that has learn the hard lessons from this trying time and has put in place ‘intensive care’ contingency plans. Only then can a franchisor confidently welcome new franchisees into the fold, confident in the knowledge that his/her organisation has weathered the storm and can look to future growth and success.
Source: FASA – www.fasa.co.za
