Code of Ethics

Upholding Ethical Franchising

FASA holds the distinction of being one of the first countries in the world to adopt a Code of Ethics and Business Practices that became amongst the most stringent in the world and which remains binding to this day. It is widely considered as being among the most stringent franchise codes in operation anywhere in the world and the South African government adopted many principles of that Code into the Consumer Protection Act which now has a section that deals with franchising. The Code of Ethics compels franchisors to provide a prospective franchisee with the three contractual pillars of franchising, namely a Disclosure Document that gives all the relevant information about the company and the franchise opportunity, a fair and equitable Franchise Agreement and an Operations Manual that sets out the company’s policies and procedures and is the blue-print to operating a successful business.

Representing Franchising on Government Level

FASA continues to engage with government to assist with their mandate to develop entrepreneurship, tackle unemployment and ultimately grow the economy.

The Franchise Association of South Africa is a member of the Small Business Institute and participates in various efforts by the SBI to lobby government about issues that concern small business.

The Association is also a member of Business Unity South Africa and it serves on the relevant committees to strengthen the voice of franchising at government level particularly concerning issues that could impact negatively on small business.

Dispute Resolution

Within franchisings’ structure of a franchisor and many franchisees, the legal intricacies within the business system can sometimes result in disputes. FASA has a proud record in playing a facilitating role between franchisors and franchisees, often assisting in resolving disputes before they reach the legal courts. The Association is in the process of applying to have it’s Code of Ethics accredited which could see FASA becoming the Dispute Resolution Arm of the Consumer Commission.