On 26 June 2026, the Competition Commission published draft Terms of Reference for a proposed market inquiry into South Africa’s franchising sector. The market inquiry is initiated because the Commission believes that features in the industry may impede, distort or restrict competition in the South African franchise industry.
The proposed inquiry matters because franchising is a significant part of the South African economy, contributing an estimated 15% of South Africa’s GDP. With 800 franchisor brands, 30,000 franchise outlets, and an estimated 500,000 employees, the impact of the inquiry cannot be overstated.
At the heart of the inquiry is whether franchising is fulfilling its potential as a route into the formal economy for small and medium-sized enterprises and historically disadvantaged persons.
