Lessons From the Franchise Networking Summit

In a business climate that is constantly shifting, the value of trusted business models and strong networks has never been more apparent. This was the underlying tone at the Standard Bank Franchise Networking Summit held in Kwa-Zulu Natal this week, where entrepreneurs, franchisees, franchisors, industry experts and the bank’s franchise sector specialists came together to unpack the realities of doing business in 2025, and to share ideas on how to grow stronger, smarter and more sustainable franchises.

The franchising sector, known for its structure and replicability, was explored not just as a business model, but as a growth tool that, if well supported, can be a major force for inclusive economic development in South Africa.

“Franchising is increasingly becoming a gateway for SMEs to scale with confidence,” said Andre Beck, Head of Franchising at Business & Commercial Banking South Africa, Standard Bank Group. “But it is also about partnership, making sure that both franchisors and franchisees share value, build resilience and contribute to something bigger than their bottom line.”

Among the big topics of the day were the external factors that franchise businesses are navigating. These include concerns around trade policy uncertainty, inflation, global interest rate movements, and the broader question of how job creation ties directly into consumer demand.

The session also made it evident that franchising works best when it works for everyone, especially when franchisors actively extend the benefits of economies of scale to their franchisees. Where this support is lacking, the model risks becoming extractive rather than enabling. This is where fairness, transparency and partnership must converge, particularly in an economy where cost pressures are real, and collaboration is key to long-term sustainability.

It was also evident that while the sector holds significant potential, particularly in reaching new and underserved markets, this growth must be paired with more inclusive ownership. If franchising is to deliver fully on its promise, representation of youth, women, and previously disadvantaged individuals in ownership structures will also need to be prioritised.

Franchising accounts for a significant portion of South Africa’s gross domestic product, yet many franchise owners still operate without access to affordable digital tools, tailored working capital solutions, or the broader ecosystem support they need to grow sustainably. This disconnect reinforces the need for continued investment in infrastructure and funding models that meet entrepreneurs where they are, particularly those operating in underserved markets or navigating tough economic conditions.

The Standard Bank Franchise Networking Summit reflects the bank’s broader role in supporting SMEs through funding, digital enablement, sector-specific guidance and market access partnerships, all part of an ongoing effort to remove the barriers that make it difficult for so many entrepreneurs to start, manage and grow sustainably.

The Summit reinforced one thing clearly, that scale is possible and shared value is essential. If South Africa is to build a resilient, inclusive SME economy, partnerships across the franchising ecosystem will need to be intentional, equitable, and aligned to the real challenges business owners face every day.