Franchise probe could mean ‘big shift’ 04.07.2026

The Competition Commission is launching a significant market inquiry into South Africa's R1-trillion franchise industry, investigating potential dominance abuse by franchisors and the exclusion of historically disadvantaged entrepreneurs. This probe, announced in the Government Gazette, will scrutinize structural features, funding requirements, agreement terms, and information asymmetries that may distort competition and hinder transformation, impacting approximately 500,000 jobs. The inquiry focuses on concerns that powerful franchisors exploit franchisees through rigid contracts, mandatory procurement, and unfair pricing strategies, while industry data shows a significant disparity in ownership, with white entrepreneurs holding 57% of outlets. Legal experts suggest this investigation could lead to a major shift in the franchising landscape, with potential for far-reaching remedies.













