How to spot fly-by night franchises

Man’s trusting and often gullible nature is at the core of why prospective business people are often scammed by fly-by-night franchises. Judging by reports in the media of numerous scams 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 unwittingly fall for these schemes. 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.

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Guide on the taxation of franchisors and franchisees

A comprehensive guide on the Taxation of Franchisors and Franchisees issued by SARS considers the income tax implications of specified income received and specified expenditure incurred by franchisors and franchisees.

It is not an “official publication” as defined in section 1 of the Tax Administration Act 28 of 2011 and accordingly does not create a practice generally prevailing under section 5 of that Act. It is also not a binding general ruling under section 89 of Chapter 7 of the Tax Administration Act. Should an advance tax ruling be required, visit the SARS website for details of the application procedure.

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What SA entrepreneurs must know to succeed in franchising

succeed in franchising

Despite volatility and uncertainty in South Africa’s economy at present, franchising remains a viable option for South African entrepreneurs wanting to generate a good income and create job opportunities. In fact, franchising is considered to be a highly feasible area for potential growth in the South African economic sphere.

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Assigning the right people to the right positions within your franchise business

business training

The transition from being an independent, family or corporate business to a franchise business or just venturing into franchising needs some thorough planning and preparation. When it comes to the ‘people’ aspect of the business, we take a deeper dive into the right way to identify, select and recruit them.

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The importance of trade secrets in business: Some things are better left unsaid


A key component in a good economy is the existence of competitive marketplaces. The success of a business is largely determined by its strategies and many businesses have ideas which give them a competitive edge but do not fall within the popular categories of intellectual property law comprising of copyright, trade marks, patents and designs. These ideas could potentially qualify as trade secrets, an often-overlooked category of intellectual property law which provides a unique form of protection.

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Why belong to the Franchise Association of South Africa

Every cloud has a silver lining, goes the saying and even in the midst of a pandemic, there are those entrepreneurs that have taken a new idea and forged a new path to business success. The FASA office has been fielding many calls from entrepreneurs asking how they can transform their bright idea into a viable franchise business.

Maybe you’ve started that small business and it’s going well and you think the time is right to take it a step further by maybe franchising it? You’ve made some enquiries and find out that, according to the Regulations of the Consumer Protection Act’s reference to franchise companies, you will need to have a franchise agreement, operations/procedures manual and disclosure document in place before you start franchising. But all this costs a lot of money if you use bona-fide lawyers and accredited franchise consultants and you’re tempted into cutting corners by using someone at a much lower fee who makes themselves out to be a franchise specialist, because they claim to have worked for one or other franchise companies in the industry and thus see themselves as franchise consultants.

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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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Franchising adjusting to the new normal


With seemingly no end to the ravages of the corona virus, franchising and businesses across the globe are fighting for their survival and are shifting operations to accommodate an unknown landscape.  Reflecting our own scenario, the Franchise Association in the USA reports that virtually, in every industry, the businesses that survive will have to change the way they operate and interact with consumers.

They say necessity is the mother of invention, and Corona virus has undoubtedly forced many businesses around the world to rethink operations. For franchise brands in particular, success will require franchisors to support franchisees and customers by pivoting their business models to better suit the changing marketplace.

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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