FNB highlights role of franchisors in SA’s franchise growth
Franchising is widely recognised as a key engine of economic activity in South Africa, but attention is typically placed on franchisees rather than the franchisors who design and scale the underlying business systems.
According to Morné Cronjé, head of franchising at FNB Business South Africa, franchisors carry the earliest and often most significant risk in the franchise value chain.
“Franchisors are the original risk takers in the franchise value chain,” said Cronjé. “Long before a network is scaled, they absorb early-stage risk, refine business models, develop systems and create the structures that reduce failure rates for franchisees.”
He added that their role extends well beyond brand ownership, with franchisors effectively acting as architects of entire business ecosystems.
FNB said franchisors play a multiplier role in the economy through job creation, skills transfer and supplier development, while also enabling entrepreneurship through established brands and systems.
Cronjé said this is why the bank treats franchisors as strategic partners rather than just commercial brand owners.
“At FNB, we recognise that the strength of any franchisee is closely linked to the strength of the franchisor behind them,” he said. “That’s why we focus on understanding the franchisor’s business model, operating processes, supply chain and long-term sustainability.”
The bank works closely with franchisors to understand how franchise networks operate, how franchisees are supported, and how growth can be enabled in a structured and sustainable way. This includes aligning funding models to specific franchise systems and ensuring clarity across the franchisor-franchisee-bank relationship.
Cronjé said the goal is to simplify the banking and funding layer so franchisors can focus on building and scaling their brands.
“Our role is to help simplify the banking side so franchisors can focus on building their brands and supporting their networks,” he said. “We work to create a single point of entry, provide funding structures suited to each brand’s realities and support both franchisors and franchisees as they expand.”
He added that the model only works effectively when all three parties in the ecosystem are aligned.
A strong franchisor provides structure and consistency, franchisees bring execution and local market delivery, and banks provide tailored funding and transactional support that reflects how franchise systems operate in practice.
Cronjé said this alignment also helps identify opportunities for more efficient expansion models and improved financial structures that franchisors may not always see from within their own systems.
Importantly, FNB said support for franchising must extend beyond established brands to include emerging franchise systems, which are critical to developing the next generation of successful networks in South Africa.
Cronjé said the long-term success of the sector will increasingly depend on the strength of franchisors.
“These are the businesses that build the model, protect the brand and put the systems in place for franchisees to grow on a sustainable footing,” he said. “That is why supporting franchisors is key to stronger networks, more resilient businesses and continued economic contribution.”