Marius Volschenk, Nedbank’s Regional Manager: Relationship Business Channel for the Free State.

South Africa’s franchise sector continues to be a robust contributor to the economy, providing around 15% (R721 billion) to the country’s gross domestic product, (GDP) according to the Franchise Association of South Africa. With more than 800 franchise systems operating more than 48 000 outlets in the country, the sector employs close to 500 000 people, which is good news in a country plagued by unemployment.

Since the start of the Covid-19 pandemic, load-shedding and supply chain challenges have been realities for all industries, but the franchise sector showed remarkable resilience and innovation to adjust to these challenges in 2022. However, increased interest rates are compelling business owners to critically review their business models and finance structures, and Nedbank, as financial experts who do good, can play a key role in supporting business owners with these decisions. For example, renewable-energy financing solutions assist businesses to minimise the impact of load-shedding and increased energy costs, with the objective of enabling a cash flow neutral funding structure.

Nedbank’s Card and Payments Acceptance Regional Manager for the Free State, Elaine Bosch.

While franchising has a significantly lower failure rate than independent businesses – reportedly up to five times less – four out of five franchises fail due to financial mismanagement. But, with Nedbank, you get a partner that is strategically aligned to your growth narrative – one that understands that you need more than just innovative, competitively priced products and can help your business reach the next level. Through our bigger-thinking approach, the members of our highly experienced, specialised franchise teams in the Free State immerse themselves in your franchise and sector so they can become an extension of your team, with a full understanding of your financial needs and business aspirations.

We leverage our own extensive business experience to offer expert guidance, financial and business inputs, and innovative payment and e-commerce solutions to help franchise businesses reposition themselves for a digitally enabled operating model in future. Research shows that contactless transactions have increased by up to 50% since the start of the Covid-19 pandemic and facilitating these through next-generation payment methods is a significant value-add we offer our franchise merchants. For example, the innovative tap-on-phone feature turns compatible smartphones into a point-of-sale device at no extra cost, and market-leading e-commerce solutions mean you can accept credit card payments directly from your own website and manage cash flow and stock levels in real time.

Karen Keylock, National Franchise Manager, Nedbank Commercial Banking.

Ultimately, our ability to see and respond to the bigger picture and unlock growth opportunities through conventional and unconventional financing approaches, combined with our advanced digital capabilities, makes us a valuable partner to any franchise business that is serious about repositioning itself to survive and thrive – whatever the future brings.

Let’s work together to get the Free State to play its rightful role in our country’s economy! Talk to one of our franchising specialists in the Free State to find out more about how we can help you grow your franchise business. Email me at MariusVo@Nedbank.co.za; our area manager for Nedbank Commercial Banking, Gloudie Boshoff on gloudieb@nedbank.co.za; or our Card and Payments Acceptance Regional Manager, Elaine Bosch on elainebos@nedbank.co.za; our national franchise manager, Karen Keylock on karenke@nedbank.co.za, or simply visit www.nedbank.co.za.

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Partner with Nedbank’s franchising specialists to accelerate Free State economy growth