MAY 2016 NEWSLETTER

FASA.CO.ZA
0861-2 FRANCHISE

 

FASA’S FRANCHISE WEEK SETS THE TONE FOR THE YEAR

Franchise Week - a dedicated week, sponsored by Absa, where the Franchise Association of South Africa (FASA) puts the spotlight on franchising by holding its Awards for Excellence in Franchising, a Franchise Convention, the Pan-African Franchise Federation meeting and the International Franchise Expo– took place in April cementing the ongoing success of the franchise business format.  With so many international franchise brands entering the South Africa market – from Domino’s Pizza to Burger King; from Krispy Kreme to Dunin’Donuts; from Baskin-Robbins ice cream to Starbucks – franchising is on everyone’s lips and, despite continued tough trading conditions, franchising continues to hold its own and show continued growth.  In this newsletter we give you some feedback from the events and begin a series highlighting all our award winners. In this issue we honour OBC Chicken & Meat – the Franchisor of the Year.  We also launch a new section in the newsletter giving best practice notes on legal and operational issues that affect franchising.

The Editor

     

 
FRANCHISE CONVENTION CELEBRATES LOCAL INNOVATION
 


 
 

If there is one thing that South Africa can be unreservedly proud of, it’s the strength of its franchise industry which is almost 90% home-grown. The FASA Convention was opened by sponsor Roy Ross, Chief Executive, RBB Rest of Africa, Barclays Africa Group Ltd, who reiterated that Africa’s market opportunities remain strong – given that 52 cities have populations over 1 million; a growing middle class and a growing urban population that is expected to reach 50% by 2030.
 
 
 

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FRANCHISOR OF THE YEAR FINALIST: CAR SERVICE CITY


 
 

Car Service City is a reputable network of over 60 workshops countrywide specialising in affordable service and repairs of all makes of cars and bakkies and is fast becoming one of South Africa’s leading car servicing groups. In an industry fraught with unreliability and unscrupulous operators, Car Service City presents an honest service with dedicated and talented franchisees who all maintain a culture of integrity and strong business principles.

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FRANCHISE BEST PRACTICE NOTES
 


 
 

It is common practice, during the course of discussions between a franchisor and a prospective franchisee, with a view to concluding a franchise agreement, for the franchisor to require the franchisee to make payment of a deposit. In such cases, the franchise agreement, or another document that the franchisor requires the franchisee to sign, in anticipation of the conclusion of a franchise agreement, often states that the deposit is "non refundable" in the event that a franchise agreement is not signed, or, having been signed, is cancelled shortly thereafter. There remains a significant amount of misunderstanding around the question as to whether, and when, money paid by a franchisee as a deposit may be retained by the franchisor.

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HOW TO OPTIMISE ELECTRONIC PAYMENTS AND COLLECTIONS IN YOUR BUSINESS


 
 

Every business would like to only make cash sales. But sometimes you as the owner might choose to extend credit to your customers to boost sales. But extending credit means you might have to run after some customers before they actually pay you.

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OBC CHICKEN & MEAT WINS FRANCHISOR OF THE YEAR FOR THE SECOND YEAR WITH OUTSTANDING GROWTH


 
 

FASA’s most prestigious award, sponsored by Absa, celebrates the success of the franchisor who has made a significant impact in the marketplace and who has, through effective business management and marketing, achieved outstanding financial results and a significant growth in his sector. The winner of Franchisor of the Year also won a Sanlam Business Excellence Index programme to the value of R14 000; a five-day Franchise Management Programme from Franchize Directions (accredited by Da Vinci) valued at R12 000 as well as a full page, full colour FREE advertisement in FASA’s 2017 Franchise Manual.

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FRANCHISOR OF THE YEAR FINALIST: CASH CONVERTERS


 
 

As the world’s largest and trusted specialist in the buying and selling of second-hand goods, Cash Converters has been represented in South Africa since 1994 and has over 75 stores employing 1 208 people – adding to an international network of over 775 stores in 21 countries across the globe.
 
 
 

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TSHWANE SMALL BUSINESS & FRANCHISE EXPO


 
 

At the end of April, Pretoria-based events organiser Ding Dong Media presented the Tshwane Small Business and Franchise Expo 2016. That the event took place at all is remarkable because the organisers had to contend with a series of roadblocks that forced them to postpone the event – twice! When it finally happened, about 290 young people, mostly students, were introduced to various aspects of small business and franchising. At the end of the day, feedback received from delegates confirmed that the organiser’s persistency had paid off. Kurt Illetschko was there and compiled this report.
 
 
 

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