Nearly half a million South Africans are employed by franchisees, indicating the importance of this type of business model.
However, Jonjon Smit, director at CIB Insurance Solutions, said that recent research indicated that many of these businesses did not have specific insurance to cover the unique risks that these types of businesses might face.
“Franchises are a rapidly developing business model and are perfectly suited to the entrepreneurial spirit in South Africa,” said Smit.
“However, while this sector is expected to continue to experience strong growth over the next few years, our research suggests that only between 20% and 30% have specific franchising insurance cover.” Read more.