South Africa’s economy showed signs of improvement in 2025, but for most businesses the environment remains tight. Consumers are under pressure, growth is uneven, and even established retailers are reassessing their competitive strategies.
Karen Keylock, Head of Retail Services at Nedbank Commercial Banking. Image supplied
Yet in the midst of this cautious recovery, one model continues to demonstrate resilience: franchising.
Franchising is often discussed as a business format. I would argue it is something far more powerful. Done correctly, it is a system that converts entrepreneurial ambition into scalable, job-creating enterprises — and that makes it a meaningful lever for national growth.
Structure turns ambition into scale
South Africa does not lack entrepreneurial energy. What it often lacks is structure. Independent start-ups frequently struggle under the weight of rising costs, compliance complexity, and inconsistent consumer demand.
Franchising addresses this gap. It provides a proven operating model, brand equity, established systems, and ongoing support. But more importantly, it gives entrepreneurs a framework within which they can focus on execution rather than experimentation.
Through Nedbank’s franchiser mentorship sessions — hosted in partnership with franchise coaches and industry experts — one message consistently emerges: franchising works, provided it is done right.
The difference between average and exceptional franchise systems rarely lies in the product. It lies in the people.
People are the real multiplier
Strong franchise systems are built on aligned operators. Over time, a clear pattern has emerged: resilience, integrity, and passion for the brand are far more predictive of success than technical expertise alone.
The advice often shared in mentorship forums is simple but powerful: hire the values, then teach the skills.
Franchisees who believe in the brand stay longer, deliver consistent customer experiences, and often grow into multi-unit operators. That is where real economic impact begins to compound. A stable store in a small town creates jobs. A multi-unit owner creates many more.
When operators are aligned and committed, franchising does more than replicate stores — it replicates opportunity.
AI as an enabler, not a replacement
However, people alone are not enough. The modern franchise network also needs the right tools.
Artificial intelligence is becoming an increasingly important enabler across franchise systems — not as a substitute for leadership or judgment, but as a way to strengthen decision-making. From demand forecasting and compliance management to reducing manual administration and improving financial clarity, AI allows franchisees to focus on growth rather than firefighting.
In a pressured economy, clarity is power. Operators who understand their numbers make better decisions. Systems that anticipate demand perform more consistently. And consistent performance builds resilience.
Partnership drives performance
The most successful franchise networks share another common trait: strong partnerships.
Thriving systems are built on regular engagement, open communication, clear expectations, ongoing training, and recognition of strong performance. Franchisees who feel supported are more likely to reinvest, expand, and create stable employment.
Financial institutions also have a role that extends beyond funding. Franchisers repeatedly emphasise that what they value most is not simply capital, but a financial partner who understands their operating model, recognises their pressures, and backs their long-term ambition.
Alignment between franchiser, franchisee, and financial partner creates momentum. Without it, growth stalls.
A national growth engine
In uncertain economic cycles, many independent businesses struggle to survive. Well-structured franchise systems, by contrast, are designed to withstand pressure. They combine brand equity, operational discipline, trained operators, and increasingly, intelligent tools.
This is franchising’s broader contribution to South Africa. It builds businesses that stay open through volatility. It creates employment across metros and smaller towns. It keeps money circulating in local communities.
If we are serious about unlocking South Africa’s entrepreneurial potential, we must recognise franchising not as a niche sector, but as a scalable growth engine.
When strong operators, disciplined systems, enabling technology, and supportive financial partners align, franchising does more than grow brands. It builds resilience. It builds jobs. And ultimately, it helps build South Africa.
