In a significant moment for global entrepreneurship, the World Franchise Council (WFC) has officially declared June 11th as World Franchise Day—a date that will annually recognise the impact of franchising in fostering economic growth and employment worldwide. South Africa’s own Franchise Association of South Africa (FASA), a proud member of the WFC, is celebrating this inaugural day by honouring the success of the local franchise sector and setting a vision for its future.
To mark the occasion, FASA will host a celebratory event on June 11, 2025, sponsored by Old Mutual, bringing together franchisors, franchisees, and industry partners to acknowledge the remarkable resilience and entrepreneurial energy within South Africa’s franchise ecosystem.
The Power of Franchising in South Africa
“Franchising has emerged as a powerful engine of growth and economic development worldwide—and South Africa is no exception,” says Fred Makgato, CEO of FASA. “We salute the 727 franchise systems operating across 14 sectors and over 68,000 franchisees contributing an estimated 15% (R999 billion) to the country’s GDP while employing approximately 500,000 people.”
Franchising continues to be a beacon of opportunity in a country grappling with high unemployment, inequality, and a need for sustainable entrepreneurship. With Micro, Small and Medium Enterprises (MSMEs) comprising 90% of businesses globally and more than 50% of employment, South Africa’s 2.6 million entrepreneurs—running 3.2 million MSMEs—play a critical role in formal job creation and GDP contribution.
According to Eric Parker, founding member of FASA and franchise industry expert at Franchising Plus, franchising offers a tested business format that enables innovation, decentralisation, skills transfer, and long-term growth. “In the face of economic challenges, South Africa must prioritise business models that deliver tangible impact. Franchising aligns perfectly with national goals of inclusive economic development,” he explains.
Government Collaboration: A Game Changer for Franchise Growth
A key highlight of this year’s celebration is the formalised collaboration between FASA and the Department of Small Business Development (DSBD) and its new entity, the Small Enterprise Development and Finance Agency (SEFDA). This partnership is set to unlock real opportunities through:
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Fast-tracking funding applications for FASA members
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Cutting through red tape to improve access to finance
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Providing training and development for MSMEs with franchise potential
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Offering structured, ongoing support for new and emerging franchisees
“This agreement is an important step in recognising franchising not just as a commercial opportunity, but as a vehicle for transformation, youth development, and service delivery,” adds Makgato.
Celebrating Local Success Stories
South Africa’s franchise journey has been marked by entrepreneurial resilience and innovation. From its early pioneers in the 1960s and 70s—such as Steers, Spur, and Pick n Pay—to the diverse franchising concepts of today, the industry has become a strong contributor to the nation’s socio-economic fabric.
FASA is proud to spotlight several franchise success stories:
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Cash Converters, which recently celebrated 30 years in business, has maintained its reputation for ethical service and adaptability across changing markets.
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OBC Better Butchery, a staple supermarket franchise for over 30 years, supports township and peri-urban economies. Franchisee Conway Mulaudzi of OBC Namakgale exemplifies success through local community service and consistent growth.
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Monkeynastix, a leading children’s movement education programme, has helped thousands of children through franchisees like Koos & Lynette Smith in Pretoria North, who’ve nurtured young minds and bodies for over three decades.
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Multiserv, with a 57-year track record, remains a trusted brand in shoe repairs and key cutting. Anthony Mameila, operating five stores in KwaZulu-Natal, has emerged as a top-performing franchisee through dedication and excellent service.
The Road Ahead
FASA Chairman Ayabulela Njingolo (OBC Group) believes that the future of franchising will depend on adaptability, innovation, and strong partnerships. “The franchising model offers a robust path to economic inclusion and job creation—especially for youth and emerging entrepreneurs. With public and private collaboration, we can scale impact even further.”
As FASA and its partners look to the future, World Franchise Day serves not only as a celebration, but as a call to action—to expand access, inspire a new generation of entrepreneurs, and harness franchising as a driver of inclusive economic transformation.
