FASA’s annual Franchise Survey, sponsored by Sanlam Business, surveyed franchisors’ financial planning habits to establish how they ensure sustainable businesses and how business owners can prepare themselves for the future.
Jannie Rossouw, Head of Sanlam Business Market, says “successful business ownership is critical to the South African economy and franchising is a massive contributor. As sponsor of the annual FASA Franchise Survey, we are passionate about helping business people succeed on every level and we believe the knowledge gleaned from successful franchisors and franchisees offers valuable insights into the mix of factors that make up successful business ownership.”
Some of the key findings on Financial Planning from the survey include:
- The number of franchise owners claiming to have some form of continuity planning remains consistent with 2017 findings at 28%, with surety protection, the financing of buy and sell agreements and financing for the replacement of key people.
- The number of respondents who have made provisions for ill health/frailty has reverted to 2016 levels with life insurance policies being the main provision, followed by having someone who knows the business take over, key man protection policies, income protection policies and retirement annuities.
- Two thirds of franchise management have a will in place that has been reviewed within the last two years.
- A similar number are not expecting a cash shortfall in their deceased estates.
- Most franchise management (71%) claim to have an investment portfolio, largely comprising retirement annuities (94%) and property (66%).
- A personal retirement is in place among two thirds of franchise management.
- Selling intentions within the next 12 months are negligible.