Franchise brands have real buying power, and when they commit to procuring from small businesses, that commitment can guarantee an SME’s sustainability for years. Akhona Qengqe, a former chair of the Franchise Association of South Africa and Transformation and Diversity Director for KFC Africa, made SME procurement a central focus during her tenure and set out how it actually works in practice.
Why franchise brands procuring from SMEs matters
Franchise brands can guarantee sustainability for small suppliers by committing to procure from them over extended periods, made possible by their buying power and their influence over where their franchisees purchase from. Since SMEs remain the biggest driver of job creation, every procurement relationship a franchise brand commits to has a multiplier effect on employment.
What SMEs can actually supply to franchise brands
Demand within the franchise sector ranges widely, from professional services like legal and auditing work, to logistics, distribution and packaging. What an SME can realistically offer depends on its specific specialty, and identifying the right franchisor to approach starts with that clarity.
The township procurement gap, and how to close it
Franchise systems often standardise their offer through a centrally approved group of suppliers with the geographical reach and scale to serve the whole network, which can shut out smaller, localised township-based businesses. Categories that can be localised within a franchise system do exist, though, and township businesses stand a better chance of being heard when they organise collectively, presenting themselves as a credible, coordinated group of suppliers rather than individual approaches.
The bigger economic picture
Every new franchise outlet that opens creates new employment. That growth depends on how readily banks approve funding for new franchise businesses, how quickly franchise brands themselves expand, and ultimately on the broader economy’s growth, since a growing economy increases both investment appetite and consumer spending.
Frequently asked questions
Why would a franchise brand commit to procuring specifically from SMEs?
Because their buying power and influence over franchisee purchasing decisions let them guarantee a small supplier’s sustainability over an extended period, while also supporting broader job creation through the SME sector.
Can a township-based small business realistically supply a national franchise brand?
It is harder, since many franchise systems standardise around centrally approved suppliers with wide geographical reach, but organising collectively as a group of credible, coordinated suppliers improves the odds significantly.
What kinds of goods and services do franchise brands typically procure from SMEs?
It varies widely by brand, spanning professional services like legal and auditing work through to logistics, distribution and packaging, depending on what a specific SME specialises in.
Procurement, not just funding, drives SME sustainability
A guaranteed procurement relationship with a franchise brand can do more for a small supplier’s long-term sustainability than a single funding round ever could.
Further reading: 8 Reasons Why Your Website Is Not Ranking | Department of Trade, Industry and Competition for official small business support information
Originally published in April 2019. Updated September 2026 to reframe Akhona Qengqe’s tenure as former FASA chair, since the role has since changed hands. The underlying SME-procurement advice remains relevant.
