JANUARY 2016 NEWSLETTER

FASA.CO.ZA
0861-2 FRANCHISE

     

FRANCHISE SECTOR BRACING TO SUSTAIN OPTIMISM IN THE FACE OF TOUGH CHALLENGES


 
 

The franchise sector ended 2015 on a positive note with a survey by FASA and Sanlam of both franchisors and franchisees which showed an extraordinarily high level of optimism in the sector and for the future. Contributing 12.5% to the country’s GDP through 17 business sectors, the franchising sector has held its own year-on-year in every respect – from showing long-term sustainability to showing a high level of optimism for the future.

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FRANCHISE SECTOR IN THE USA TO OUT-PERFORM THE OVERALL ECONOMY IN 2016


 
 

A report, commissioned by the US International Franchise Association, compiled by IHS Economics, a well-known forecasting firm, projects that the franchise sector will outperform the overall economy next year by 5.1% gain against a projected US gross domestic product increase of 3.1%.

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SORBET HOLDINGS SIGNS LICENCE AGREEMENT WITH CLICKS TO HOLD TRADEMARKS


 
 

Government’s Portfolio Committee on Small Business Development has recommended for the regulation of small-scale businesses in townships, tuck shops, spaza shops, street vendors and general dealers.

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FASA PUTS THE SPOTLIGHT ON FRANCHISING WITH ITS UPCOMING EVENTS


 
 

The first quarter of 2016 is a busy time for FASA and franchising as they prepare to host Franchise Week at the beginning of April – putting the spotlight on the FASA Awards for Excellence in Franchising, the annual FASA Convention and culminating in the 3-day International Franchise showcasing franchise and business opportunities and hosting a number of educational workshops.


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JOINT-EMPLOYER RULING IN THE USA – A BLACK CLOUD IMPEDING GROWTH


 
 

The projected growth in the franchise sector in the USA in 2016, as per the IFA’s report, bodes well for franchising except if the whole sector comes crashing down due to an unprecedented federal ruling on the joint-employer issue that makes both franchisor and franchisee jointly liable for a franchisee’s employees.

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