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The International Franchise & Entrepreneurs Expo, which takes place from the 8 – 10th May 2008 at the Sandton Convention Centre has, over the past 15 years, developed into the biggest franchise exhibition on the African continent and the most dedicated to developing not only franchising but encouraging small business development and entrepreneurship. With 12% of business activity going through the franchise route at present, the potential for increased franchise growth is high and shows like IFE are the ideal platform for prospective franchisees to find out more about this business format that allows you to get into business for yourself but not by yourself. The success of the IFE Expo over the past 15 years is an indication that South African entrepreneurs are going all out to develop business opportunities that will help grow the economy, put people into business for themselves, develop skills and create jobs. Whilst FASA welcomes all entrepreneurs who develop new business opportunities, it does encourage those business developers to consider the franchise method of distribution and to become FASA members which would ensure that they franchise according to highly ethical and universally accepted principles. For the prospective buyer, the IFE show is an excellent opportunity
to see franchisors face to face, so as to take a measure of the
style and substance of the operation and find the one that is the
right fit. Whilst at the show, the visitor can also take advantage
of all the free advice and information on offer from professional
advisors such as lawyers, bankers, consultants, etc - or attend
the talks and seminars which take place during the course of Franchise
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| GLOBAL TRENDS IN FRANCHISING Global trends in franchising for the coming year include an increase in three major areas – retail, food and service businesses. With more dual-income families having greater disposal income, busier lifestyles and riding the wave of “must haves”, franchising, with its strong branding and fast duplication, will be their first choice. Food franchises, whether fast food, sit down or home replacement meals will thrive in our fast-paced society. Specialist services, such as home and garden maintenance, automotive services and repair services are in great demand as are business-to-business services such as computer, print and personnel services. When it comes to personal growth, expect to see childcare, education and training franchises a top priority as people recognize the importance of getting quality skills training and making sure their children get the very best in the way of education and development. And not forgetting the lighter side of life, with entertainment and health, fitness and beauty franchises catering to everyone’s desire to look and feel good and ultimately to enjoy life. :: top :: |
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Man’s trusting and often gullible nature is at the core of why prospective business operators are taken in by the fly-by-night operators. Judging by the host of scams that appear in our e-mail inboxes offering get-rich-quick schemes and the many reports of unscrupulous operators, there are a whole lot of people out there who are corrupt enough to take advantage of others and enough gullible people who will fall for the chance to make a quick buck. The bottom line; rarely does a get-rich-quick-scheme work and franchising, perhaps because of its high profile and strong reputation and the relative ease with which it can be duplicated, is one of the business sectors that is often open to fly-by-night franchisors. Mention the word franchising and you will get a range of reactions from it being the “miracle cure” for all business ills to those who believe it to be “the greatest con of all time.” According to franchise consultant Eric Parker, of Franchising Plus, the reputation of franchising is poor worldwide and ignorance on franchising opens people up to being taken for a ride. “Franchising has great potential, nowhere more so than in South Africa,” says Eric “where entrepreneurship development and job creation are national imperatives. The realization of franchising’s potential depends not only on correct implementation by those setting up franchising but also by educating those buying into a franchise concept.” Statistics often claim, quite rightly so, that when purchasing a franchise, you are more likely to find greater success than going into business as an independent. Whereas independent business have an 80% chance of failure in the first five years, franchise failure is under 20%. However, the buyer must always remember that there are risks involved, and that they can reduce them if proper homework is done. Kobus Oosthuizen, FASA’s current Chairman and franchise consultant who, in his time has been both a franchisee and franchisor, believes that with the increasing public awareness that franchising enjoys throughout Southern Africa, a number of charlatans have entered the industry over the years, their sole intention being to take advantage of the uninformed business person wishing to invest in a franchise. “Fly-by-nights are clever and often operate under the radar” says Oosthuizen. “As a prospective franchisee, you need to be able to pick up the subtle signs that give out warning signals, such as the fact that these franchisors are often eager to collect deposits before proper interview and profile testing of franchisees is done. Incomplete or non-existent disclosure documents, specifically regarding details of terminated agreements should be a warning sign, as is a franchisor not being able to supply comprehensive details on performance (turnover and viability) of its first stores.” According to Lindy Barbour, Managing Director of Franchize Directions, one of the leading franchise consultancies in South Africa, prospective franchise buyers should keep the adage, “if it sounds too good to be true – generally it is” in mind when investigating franchise opportunities. “Guaranteed promises of unreasonably high profits should be a warning sign and a franchisor with no pilot operation on the ground does not fit the franchise shoe of a “proven business system”. A long list of promised ongoing support initiatives without the franchisor infrastructure to match is also a red light” Although the Franchise Association of Southern Africa (FASA) does not have legislative powers, it strives to commit its members to very high ethical standards of business practice. Vera Valasis, the Executive Director of FASA, believes that franchisors who take the trouble to join the association voluntarily and are prepared to go through the rigorous scrutiny of their franchise package of Disclosure Document, Operations Manual and Franchise Agreement, have, at the very least, proved that they have taken the trouble to research and set up their franchises according to internationally accepted guidelines. Says Vera, “Our insistence that our members have a pilot store operating for at least a year before being able to join the association and with strict rules on disclosure, we believe we can offer the public some degree of protection which has resulted in FASA having a negligible record of fly-by-night members. Our advice to prospective franchisees is to make FASA their first port-of-call when shopping around for a franchise. At the very least they will know that FASA members subscribe to a stringent Code of Ethics that promotes ethical business format franchising practices.” TELL-TALE SIGNS OF “FLY-BY-NIGHT” FRANCHISORS
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FASA WELCOMES SIMPLY ASIA AS A FRANCHISE MEMBER If you have ever wanted to bask in the glory of owning a restaurant and be the talk of the town then your opportunity is here with a unique Thai-style eatery franchise concept called Simply Asia. Simply Asia stores in Gauteng are creating a revolution in the food industry with the offering of Authentic Thai cuisine in an über-trendy and contemporary setting. Don’t waste any time and miss out. Get in on the action now! Simply Asia, the multiple award-winning Thai restaurant chain, is giving entrepreneurs the opportunity to come on board and become part of the exclusive and highly successful range of Thai Food and Noodle Bar eateries in the Gauteng region. The Simply Asia Thai restaurant chain has had great success in the Western Cape and has recently opened a brand new store in Randburg, Johannesburg, to the delight of many consumers wanting healthy, hearty and flavoursome food in a flash. In 2006 the Cape Thai Restaurant Holdings Director, Chaiphorn Lekcharoensuk (better known as Mr. Chai), teamed up with Philip Smith to establish a franchising roll-out concept for the Simply Asia restaurant Chain in Gauteng. Simply Asia Gauteng is a subsidiary company of Cape Thai Restaurant Holdings. This opportunity has realised the dreams of many an entrepreneur to own a successful restaurant which the public loves and enjoys. Simply Asia has a proud history and a loyal customer following based on its belief in authenticity, unparalleled service and quality. The Simply Asia concept and design follows the Thai values of health, freshness and purity – guaranteeing that every meal at Simply Asia is fresh, tasty and healthy. Says Philip Smith, shareholder and the man heading up the franchise
office in Johannesburg: “Simply Asia is something quite special,
which taps into the trend of people who are cash rich but time poor,
looking for a different, tastier and healthier food experience.” Owners can choose between the two store styles, “Simply Asia Sit-down” or “Simply Asia Express” (for take-out). All of the eateries have a similar floor plan, with all outlets incorporating an open (exhibition style) kitchen. Also included in the contracts are specially trained Thai chefs. According to Smith, the provision of specially trained chefs by the franchisor is something quite unique in the market and assists franchisees in setting up the restaurant with much more ease and less worries, making any of the Simply Asia franchising opportunities a winning one. Set up costs for a Simply Asia sit down or Express restaurant are in the region of R800 000 and R600 000 respectively. “The set-up cost is quite low in comparison to other restaurants in the franchise sector. And from a return on investment (ROI) perspective, Simply Asia has a low initial capital investment, low operating costs and with the simplicity of operating such a franchise, owners’ ROI can be realised from early onset,” Smith adds. For those looking for a fantastic business opportunity, wanting to buy into the fast growing Simply Asia business chain the time to respond is right now. For more information on franchising opportunities visit www.simplyasia.co.za or for further enquiries regarding Simply Asia franchising in Gauteng please contact: Philip Smith Simply Asia’s award-winning nature: Simply Asia has recently been the recipient of a few prestigious awards, confirming its reputation of high standards and quality.
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