FRANCHISE MARKET INQUIRY: INPUT SOUGHT ON DRAFT TERMS OF REFERENCE

FRANCHISE MARKET INQUIRY: INPUT SOUGHT ON DRAFT TERMS OF REFERENCE

• 26 June 2026
• Trade, Industry & Competition
• SA Legal Academy

The Competition Commission has announced its intention to conduct a franchise market inquiry – calling for public comments by 7 August 2026 on the draft terms of reference.

This follows widespread complaints about a range of issues perceived to be preventing franchise sector ‘entry and meaningful participation’ by aspiring entrepreneurs and people from historically disadvantaged communities.

According to the document’s preamble, these issues include:

• a ‘power imbalance between franchisors and franchisees’
• the ‘challenges franchisees face in negotiating equitable terms’
• onerous franchise funding requirements ‘imposed by … franchisors (and)/or credit financiers’
• franchise agreement terms, conditions and practices undermining franchisor-franchisee relationships, and
• overly optimistic or misleading information on success rates used to attract prospective franchisees.

The inquiry will focus on franchises in the following industries:

• fast food
• construction
• automotive
• grocery
• fuel stations, and
• health and beauty.

Please click the link below for more information:

• draft terms of reference

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