South Africa's economic landscape improved in 2025, but it remains challenging. Consumers are stretched, growth is still slow, and retailers – even well-established ones – are rethinking how they compete.

Against this testing backdrop, 1 sector continues to show its strength: franchising. It offers entrepreneurs and business-minded individuals a clear path to owning a business, with the likelihood of success supported by proven models and strong backing that enable resilience when it matters most.

Speaking at the FASA Conference — of which Nedbank is a proud sponsor — Karen Keylock, Head of Retail Services at Nedbank Commercial Banking, said that this resilience is not just theory; it has been reinforced through Nedbank's franchiser mentorship sessions, a highlight in the franchising calendar for several years. These events, shaped with franchise coaches and industry experts, create a space for franchisers to learn from each other, ask candid questions, and gain practical insights they can apply immediately.

According to Keylock, 1 theme has consistently emerged from these sessions: Franchising works, provided it is done right. 'South Africa has endless entrepreneurial energy,' Keylock explains, 'and franchising gives that energy a structure that allows people to harness it and turn it into something real, sustainable, and scalable.'

She stresses that this 'structure' is of utmost importance when it comes to doing franchising right. 'Strong franchising systems are not built on products or processes; they are built on the right people,' she says. 'Over and over, leaders who speak at our sessions emphasise that the true multiplier effect comes from choosing operators who align with the brand's values, want to be hands-on, and have the hunger to grow. These are the people who keep stores stable, deliver the same experience whether you are in a big metro or a small town, and create jobs as their businesses grow.'

Keylock says that attributes like resilience, integrity, and passion for the brand are far more predictive of success than technical experience. She encourages franchisers to follow the advice shared at 1 mentorship session: hire the values and then teach the skills.

This people excellence mindset does not just make life easier for franchisers; it strengthens the entire sector. Operators who believe in the brand stay longer, perform better, and often become multi-unit owners. That is where real momentum builds, with consistent franchisees running stable businesses that keep money circulating in their communities.

However, Keylock emphasises that building South Africa's economy through franchising will not happen purely because of people, no matter how good they are at what they do. It also needs the right tools. That's why AI is becoming a meaningful enabler for franchises of all sizes – not as a replacement for human judgment, but as a tool that brings clarity to key success areas like forecasting demand, improving compliance, reducing manual tasks, and helping operators understand their numbers with more confidence.

When strong operators, clear systems, and practical tools come together, the result is businesses that stay open through economic cycles, employ more people, and expand even when the broader economy slows. ‘That is the real contribution franchising makes to South Africa – building businesses that withstand pressure and continue to grow in conditions that shut many independents out,’ says Keylock.

Importantly, the franchise networks that truly thrive are those where franchisers create an environment of partnership and support. Regular engagement, openness, effective communication, clear expectations, recognition of superior performance, and ongoing training all make a significant difference. The result is motivated franchisees who stay in the system, invest more, open additional stores, and create opportunities and futures for their employees.

Keylock points out that financial partners also play a vital role – not just financially. 'Franchisers repeatedly tell us that what they value most is not the money; it is a financial partner who understands how their models work, recognises the pressures they and their franchisees face, and is willing to do whatever it takes to support their growth plans and back their ambition.'

While the end goal is stronger franchise systems, more resilient franchisees, and stronger communities, the only way to achieve this is for franchisers, franchisees, and financial partners to pull in the same direction. 'At Nedbank, we understand the importance of helping franchisers grow, and we recognise that by doing so, we are not just supporting businesses – we are helping to build South Africa,' Keylock says.

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