JOHANNESBURG - The Competition Commission is calling for a market inquiry into South Africa's franchise industry.
It wants to determine whether certain features of the franchise market are restricting competition, limiting new entrants and hampering transformation.
A growing concern is the concentration of ownership in some franchise sectors, unequal bargaining power and restrictive trading conditions.
The inquiry will also examine whether funding requirements and high upfront costs create barriers for small businesses and historically disadvantaged entrepreneurs.
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Major franchise brands across fast food, retail, automotive services, construction and health and beauty could fall within the scope of the probe.
The Commission has invited public comment on its draft terms of reference, with submissions due by 7 August.