SUNDAY TIMES, Hard times but industry resilient
SUNDAY TIMES, Business Times Page 17
New brands find market entry difficult as economic downturn affects the sector in SA ALL STORIES BY ANDREW GILLINGHAM THE recent tough economic conditions in South Africa have proved challenging for the local franchising industry, for both franchisers and franchisees. Vera Valasis, executive director of the Franchise Association of South Africa (Fasa), said that established, well-known and reputable franchise brands had managed to maintain their performance. “However, newer and less well-known brands are finding it difficult to attract new -franchisees, and these franchisees are finding conditions more difficult than those with more established brands,” Valasis said. She added that funding was also an issue, as lenders were still risk-averse and, while banks may claim otherwise, Fasa's experience suggested that few loans were being granted to franchisees.
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