As the franchise sector suffers more debilitating losses as a result of the load-shedding crisis, The Franchise Association of South Africa (FASA) adds its voice to other representative business associations calling on government to take urgent action to resolve the energy crisis and bring national security under control to prevent an explosion of unrest and civil disobedience. Franchising, which contributes around 14% to the country’s GDP represents businesses across fourteen different sectors, and FASA has done everything to ensure that its members comply with government’s guidelines and co ..read more

  In 2011, the Consumer Protection Act, 68 of 2008 was introduced, granting prospective franchisees the right to contact existing franchisees or visit current outlets to assess the franchisor’s information and opportunity. As a franchisor, it is important to consider whether you are meeting the needs of your franchisees. Are you providing sufficient ongoing training and support to adapt to their evolving needs? Is your marketing strategy exciting customer interest and providing an edge in the market? Do you have systems in place to hear and address their ideas, questions, and concerns ..read more

Becoming a business coach in South Africa can be as easy as buying a coaching franchise. These franchises claim to assist business owners struggling with things like sales and growth. Although some franchisors require franchisees have past managerial experience, others are happy if you’re a generally sound person with good sales skills. This is a very different approach compared to the many complex business coaching courses available at respected tertiary institutions in South Africa. If you like the idea of calling yourself a business coach and working under a franchise model, you can do so ..read more

Starting a franchise business is an excellent way to enter the market and become your own boss without the additional challenges of creating a business from scratch. Like with any other business, it is better to be prepared for all aspects of running a successful franchise. There is no doubt that franchising is an easier path into the business world. However, do not rush and consider all key factors before acquiring a franchise. It is a serious decision that needs to be made carefully. Factors to Consider Before Buying a Franchise Look at the following factors that should be considered before ..read more

Many franchise agreements include operational rights within an exclusive territory. But what happens if there’s territory overlap, or one franchisee encroaches on the territory of another? Whether you’re a franchisee or a franchisor, there are ways to deal with territory border disputes. Dealing with disputes effectively is crucial regardless of your job. For franchisees, maintaining a good working relationship enables insights to continue to be shared. For the franchisor, finding solutions that appease both parties is key to the healthy maintenance of the franchisor-franchisee relationship ..read more

                        Motorists spend R37 billion on car parts and services each year, much of which passes through established automotive franchises. There are dozens of options available, many of which don’t require technical knowledge about cars. Here’s how much it costs to open a brand name panel beater, workshop, car tyre or battery fitment centre, used car dealership, or aftermarket parts franchise in South Africa. South Africans spend a staggering amount on fixing up their vehicles each year. Some reports suggest it ..read more

  Working capital is often neglected when potential franchisees are researching possible franchise opportunities and when franchisors present their franchise offering to potential franchisees. Simply put, working capital is the money you must have available to meet your ongoing expense obligations. When you buy a franchise, you immediately start to incur costs like, rent deposit and monthly rental, water, electricity, salaries, wages, telephone, internet connectivity, data and the list goes on. These obligations must be met for the franchise to establish itself and begin to make a profit ..read more

  It’s easy to get caught up in the day-to-day tasks involved in running a business. But how can you make sure you get the most out of your franchising journey as a happy franchisee? Here are our eight top tips for job satisfaction in the franchise world. Take pride in your training The best franchise opportunities offer quality training programmes for all franchisees, whether they’re seasoned professionals or completely new to the industry. Most will also offer ongoing support and regular development courses for franchisees to boost their skills and knowledge. This should not only giv ..read more

Although franchisees are regarded as being in business for themselves, they are part of a broader network and have bought into and must abide by someone else’s business model. This is a franchising agreement According to Tanya Woker, Professor of Law and author of ‘The Franchise Relationship under South African Law”, there is a need to ensure the right balance between the rights of franchisors to protect their networks and the rights of franchisees to benefit from the investment they have made. More than just a legal contract On the face of it, the legal relationship between a franchisor ..read more

A franchisor’s marketing fund is to fund national branding to get customers to Know, Like and Trust their brand, products, and services. The marketing fund is funded by its franchisees and is usually a monthly payment to the franchisor commonly calculated as a percentage of turnover, a flat fee, or a combination of the two. This is beneficial to both the franchisor and its network of franchisees to win new customers and retain their existing customer base. But is this enough for franchisees to be successful? Over and above the monthly marketing fund contribution to the franchisor, franchisees ..read more