Leadership lessons learnt in a crisis


Franchise leaders around the world have been sharing their experiences in trying to confront and manage the challenges they face with Covid-19. All agree that the very nature of franchising as a business format calls for not only continual innovation but relies on the combined efforts of both franchisor and franchisee. This, it seems, could be franchising’s saving grace, according to Tony da Fonseca, MD of the OBC Group and immediate past chairman of FASA.

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Get your business ready for the peak season

Festive season

The festive season around the corner is a business’ only hope to end off the year on a high note, giving business owners an opportunity to see all the pistons of their business firing and the harvest rolling in. Or, it can turn into a nightmare rather easily if not enough preparation has been done in the run-up to the season. Arnold February, regional investment manager at Business Partners Limited gives us the following tips on getting ready for the peak season. Read More

Can a franchise company invoice its own marketing fund for fund loans?

Law firm working

Can a franchise company invoice its own marketing fund for funds loaned to address a financial shortfall that could hamper marketing activities?

This interesting query came through FASA’s online help-desk and we asked Ian Jacobsberg, Director, Corporate & Commercial, Tabacks for his expert opinion.

In general, the marketing fund is simply a sum of money accumulated by the franchisor from marketing contributions paid by franchisees in terms of their franchise agreements, often augmented by contributions by the franchisor itself.

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Ten financial tips for business owners in hard times

falling on hard times

Financial management naturally tends to slip down the list of priorities for business owners when the economy is booming, finance is cheap and clients are plentiful. But when the tide turns, your ability to control your finances, especially your cash flow, becomes probably the most important survival tool available to the entrepreneur. Veroshen Naidoo, area manager at Business Partners Limited, one of FASA’s members, suggests ten ways for business owners to improve their finances during a downturn:

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Ensure fair play between brands and consumers

Brands and businesses shouldn’t fear the Consumer Protection Act. Instead, they should welcome its drive to promote fairness, openness and good business practices among suppliers of goods and services. Should your brand or business be faced with a consumer complaint, the Consumer Goods and Services Ombud (CGSO) can assist by providing an alternative dispute resolution service.

The Consumer Goods and Services Ombud (CGSO) is established and accredited in terms of section 82(6) of the Consumer Protection Act. This Act empowers the Minister of Trade and Industry to approve and promulgate an Industry Code of Conduct, which allows industry to manage its own disputes instead of allowing each complaint to be investigated by the National Consumer Commission. The Consumer Goods and Services Industry Code of Conduct was promulgated by the Minister of Trade and Industry on 29 April 2015. As a result, it is compulsory for all qualifying businesses to comply with the Code through signing up to the CGSO, paying the participation fees and complying with the dispute resolution process outlined in the Code and the CPA.

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Understanding the business format of franchising

understanding the business

Franchising is a universally accepted and successful business format that has revolutionized the way small business is run and has contributed extensively to entrepreneurship, skills transfer and job creation. The two most universally accepted forms of franchising are:

  • Business format franchising

    This is defined as a distribution network operating under a shared trademark or trade name with franchisees paying the franchisor for the right to do business under that name for a specified period of time. In exchange, the franchisee is able to use the franchisor’s entire business system or format, including the name, goodwill, product and services, operating manuals and standards, marketing procedures, systems and support facilities. The franchisor, in turn, is obliged to give initial and ongoing services and support.

  • Product and trade name franchising

    Characterised as a sales relationship between a supplier and a dealer, product and trade name franchises can be found most commonly in car dealerships, petrol service stations and cold drink bottles. The dealer is granted the right to sell its products in exchange for fees and royalties and has an obligation to sell only the franchisor’s products.

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Should you reinvest your business profits, or save them elsewhere?

Invest your profits

Once a business is better established from its start-up days and starts producing profits, the business owner is faced with a not-altogether unpleasant dilemma – is it better to reinvest the surplus back into the business, or take it out and save it elsewhere? FASA member Business Partners’ Jeremy Lang gives his advice.

“Just because it is a nice problem to have, does not make it unimportant”, says Jeremy Lang, regional general manager of Business Partners Limited. The answer to the question can make a huge difference to the wealth and future security that a business owner manages to achieve.


It is important to realize that there is no rule of thumb like “take out 20% and reinvest the rest” to guide a business owner in answering the question, says Jeremy. Every business is unique, and the right answer also depends on the risk appetite and investment strategy of the business owner.

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Don’t approach the Franchise Association of South Africa after you have lost your money

Losing Money

One thing the Franchise Association of South Africa fails to understand is why some franchisees approach the Association to complain against a franchisor after they’ve lost all their money?

The Association was established in 1979 to promote ethical franchising and to arm potential franchisees with all the relevant information and issues for careful consideration BEFORE they invest in a franchise – yet it seems the advice is not being heeded by some.

It seems some franchisees blindly buy a franchised outlet without ensuring that the company is an accredited member of the Association. Unfortunately, frequently things go wrong and the franchisee’s investment turns sour for various reasons. Then when they are in financial difficulties they start doing research – which they should have done before buying the franchise, find the Association’s website and then lodge complaints thinking the Association will be able to help them recover their investment.

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Five key services every SME can afford to outsource


In recognition of this MiWay Business Insurance introduced MiBusinessAssist to help their clients free themselves from admin and focus on growing their business.

Here are five of those services that MiWay Business Insurance clients can access today:

1. Financial advice

Few small businesses can afford to keep a financial advisor on their payroll to help with the more complex aspects of staying profitable. With MiBusinessAssist, clients have access to highly skilled financial advisors who are able to provide guidance on a host of business-critical financial matters.

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The importance of doing your homework before buying a franchise

The importance of doing your homework before buying a franchise

An exposé on eNCA’s Check Point last week put the spotlight on the plight of franchisees who bought into a franchise that was not accredited by the Franchise Association of South Africa. Irregularities in the franchise contract, lack of support and unhappiness amongst franchisees were highlighted – giving franchising a bad rap.

Often, when FASA deals with enquiries and complaints from unsuspecting franchisees who apparently have been done in by a franchisor that appears to be a fly-by-night, one wonders why or how did it happen that they decided to buy a franchise from a franchise company that is not an accredited member for the Association. Despite the many warnings from the Franchise Association and others in the industry, it is a sad fact that many franchisees blindly buy into franchises without doing a thorough due diligence and fail to have considered the following:-

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