Franchising leads global recovery
Did you know that South Africa’s franchising economic output as a percentage of GDP ranks in the top five worldwide? That’s correct… with its contribution to GDP at 15,3% (in 2017) and slightly less at just under 15% in 2019, South Africa’s franchise sector is up there with France, Australia, New Zealand and the Netherlands. The success of South Africa’s franchising sector puts us squarely amongst the best performing franchising countries in the world, according to statistics compiled by the World Franchise Council’s 2017 Survey on the Economy Impact of Franchising Worldwide, created to monitor the global franchise landscape. As a long-standing and …
Franchises across all sectors dig deep to survive
One has to ask how businesses, entrepreneurs and investors in South Africa have any confidence in a future when confronted with constant rolling blackouts, another looming fourth wave of coronavirus infections with little to no support from the government. Well, If you are a franchise in any of the fourteen business sectors, you pick yourself up, dust yourself off and dig deep to survive. That was the overwhelming sentiment following the Franchise Association of South Africa’s key franchise conference in August that took a hard look at how Covid-19 affected the franchise sector and outlined steps to not only regain …
A practical guide to going on holiday safely
The Scientists Collective, made up of some of South Africa’s leading scientists, offer the following guidance to staying safe this festive season, as featured on Maverick Citizen. After a ‘annus horribilis’, many people are looking forward to a well-earned rest and some quality time with family and friends or perhaps going on a well-deserved holiday. But, with the coronavirus on the increase in the coastal provinces, how does one make sure to travel and stay safe this holiday season? FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus …
Minuteman Press launches free COVID-19 resource bounce back South Africa to support local business
Minuteman Press International has launched a new initiative, Bounce Back South Africa, to help give back to businesses in local communities that have been hit hard by the COVID-19 pandemic. The initiative is available right now, free to business owners at “Bounce Back South Africa™ offers two free services to help support all of our neighbouring businesses as we find a way to work together through these unprecedented times. First, we are distributing COVID-19 awareness and prevention posters at no charge to any business in our service areas. Second, we are providing free local advertising on this site to stimulate …
Sorbet appeals to open under strict hygiene conditions
The Grooming Sector (nail, hair, beauty & health services) which has a high proportion of female owners who are often the sole breadwinners of their families and support many dependants is suffering immense losses during this lockdown. Any further extension of the lockdown could see the entire industry face potential bankruptcy. The Sorbet Group of salons Experience (Pty) Ltd leads the field in maintaining the strictest hygiene standards and is ready to implement even further precautionary hygiene protocols and safety measures as their submission to government shows:- As a member of FASA, the Sorbet Group consists of a franchised network …
Navigating the covid-19 regulations
Following President Ramaphosa’s address last week indicating that most of South Africa should be at Level 3 by the end of May, the details of which sectors will open are still to be confirmed although indications are that retail, e-commerce and exercise will be lifted soon. However, parts of the country with the highest rates of infection may have to remain on Level 4. But, as we have seen, many of the rulings have been changed, challenged and it has become difficult to keep up with this ever-changing crisis. NEASA, the National Employers Association of South Africa (www.neasa.co.za/covid-19-return-to-work-toolkit/), have produced …
Paying the rent during Covid-19
The Covid-19 pandemic may bring about the long-overdue overhaul of retail rentals, according to many experts. Landlords have enjoyed good times but if there are mass cancellation of leases landlords will have no choice but to come to the party and reset the button on how they negotiate leases. As most retailers will be in survival mode for many months, if not years to come, the crisis will bring about a new commercial reality as retail outlets, both large and small, will not be able to afford the exorbitant rentals they paid pre-Covid-10. Following a directive by government that commercial …
Level 4 – Services, movement plus questions and answers during the Covid-19 pandemic
Questions from members in relations to business operations for level 4 Do all staff members have to have a permit? Yes, a person entitled to perform an essential service or permitted service allowed under Alert Level 4, requires a permit which corresponds with Form 2 of Annexure A – this is in terms of Regulations 16(2)(b) and 28(4). A template of Form 2 may be found on page 27 dealing with the said Regulations. What’s the percentage of staff allowed? Initially it was proposed that only one-third of the workforce would be entitled to return to work under Level 4. …
Letter for landlord in the Covid-19 Pandemic
About the letter for landlord template Due to the effects of COVID-19, non-essential goods/services retail tenants, a substantial number of which are franchised businesses, have been forced to cease trading during the lockdown period, resulting in their inability to pay rent. To complicate matters further, most franchise agreements contain clauses stating that a franchisor may terminate the franchise agreement in the event that the franchisee breaches any material terms of its lease agreement. Therefore, instead of breaching your lease agreement for non-payment of rentals, and in turn falling foul of your franchise agreement, it is strongly suggested that you immediately …
Lockdown to ease as of 1st May but to a few only
President Ramaphosa announced in his address that new lockdown regulations will come into effect as of 1st May. Government realises that people need to get back to work and earn a living and that businesses need to open their doors. President Ramaphosa also said that if South Africa opens its doors too quickly there is a high risk of the Covid-19 spreading. When the full nationwide lockdown ends, South Africa will transition to a system of alert levels to ensure we can ease restrictions as safely as possible. These levels will be reviewed based on the number of cases. …
Franchise sector appeals to government for urgent intervention
The franchise industry in South Africa generates approximately R734 billion to the economy, according to the Sanlam Franchise Survey conducted in 2019. Furthermore approximately 500 000 employees enjoy permanent employment nationwide in its 48 000 franchised outlets and 824 franchise companies – contributing just under 14% to the country’s GDP. Since the implementation of the COVID-19 emergency measures around 94% of the industry has not been trading, with the exception of mostly food retailers. This has had a devastating impact on the industry and it is feared that unless more financial aid is provided some 15% i.e. 75 000 jobs …
The South African Future Trust (SAFT) employer relief fund
The South African Future Trust (SAFT) was set up by Nicky and Jonathan Oppenheimer as result of the COVID-19 pandemic The aim of SAFT is to provide interest-free loans to qualifying SMMEs, exclusively for the purpose of paying a specified amount of money to their permanent employees who are at risk of losing their jobs or suffering loss of income due to COVID-19. If the loan is approved the permanent employees of the qualifying SMMEs will receive weekly payments of R750 per employee over 15 weeks (i.e. R11,250 in total per employee) and the full amount of the loan will …
Covid-19 TERS Benefit: What you need to know
One of the measures that is designed to provide relief to employers and employees is the C-19 TERS benefit. On 3 April 2020, the Minister of Employment and Labour issued a revised Directive under the Disaster Management Regulations that will regulate these benefits. In addition, the benefits are subject to the terms of the memorandum of understanding or standard terms, which have also been published. FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation. www.fasa.co.za …
The Property Industry Group announces its retail tenant assistance relief package
The Property Industry Group has announced an industry-wide assistance and relief package for retail tenants that are hardest hit by complying with South Africa’s lockdown in the face of the COVID-19 pandemic. The initiative, which focuses principally on supporting affected SMMEs, also provides relief and assistance to all other retail tenants and will be rolled out by landlords nationally. During the week of 23 March 2020, the major representative bodies for real estate in South Africa – the SA REIT Association (SA REIT), SA Property Owners Association (SAPOA) and SA Council of Shopping Centres (SACSC) – formed a collective, which …
How to apply for Covid-19 business funding
Has already reached capacity and suspended until further notice Positioned to provide widespread and sustainable support for small and medium enterprises (SMEs) that are financially impacted by COVID-19, the newly-established Sukuma Relief Programme comprises two distinct and separate relief offerings – one for formal sole proprietors and another for other business entities, namely close corporations, companies, and trusts. This is according to Ben Bierman, Managing Director at Business Partners Limited (BUSINESS/PARTNERS) – one of Africa’s leading risk finance companies for SMEs and the appointed Administrator of the fund – who explains that the financial aid and assistance will comprise grants …
COVID-19 SMME emergency funding options
Small business owners can call 0860 663 7867 or email info@dsbd.gov.za to find out what kind of government support they qualify for during the lockdown. See funding that has been made available for various sectors. FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation. www.fasa.co.za …
Tax measures to combat the covid-19 pandemic
The Minister of Finance has announced the following exceptional tax measures as part of the fiscal package outlined by President Cyril Ramaphosa on 23 March 2020 in his speech on the Escalation of Measures to Combat COVID-19. These measures are over and above the tax proposals made in the 2020 Budget on 26 February 2020. The tax adjustments are made in light of the National State of Disaster and due to the significant and potentially lasting negative impacts on the economy from the spreading of the COVID-19 virus. There is a critical need for government interventions to assist with job …
Covid-19 Government Plays its part
It seems that the franchisor sector will be hard hit during the 21 day lockdown with most sectors falling outside the designated essential services. However, help is at hand and FASA has been liaising with the Department of Small Business Development, SEDA and sefa on getting information regarding the COVID-19 SMME Emergency funding package document dated 23 March 2020 as well as the UIF Easy-Aid Guide for Employers . Information is given regarding emergency funding that small business can apply for and the National Disaster Benefit for employees where employers can apply for financial benefits from the UIF. Click here …
Employer and employee relief during the Corona virus pandemic
Temporary employee relief scheme – understanding your options and how to apply Most businesses are under server strain as a consequence of the severe measures implemented due to the COVID-19 having been declared a national disaster, wreaking havoc on their cashflow. We asked Maria Vannucci, of Marican, registered professional accountants and tax practitioners, who counts many franchises amongst her clients, to help businesses navigate the crisis. “Employees who won’t be allowed to work during the lockdown period of three weeks, are, to a large degree, at the mercy of their employers,” says Maria Vannucci. “While government has encouraged all businesses …
Covid-19 Q & A for business operations during the lockdown
This Q&A constitutes our expectations as to how the business lockdown will take effect. It is not an official document, but intended to bring some clarity to businesses in the interim. Once the official list is released, we will update this information as is necessary. We appeal to all businesses to respect the importance of the lockdown. Sacrifices will need to be made in the broader interests of the country and its people. Is there an official list of which businesses that should remain open? We are anticipating that the official list and conditions will be finalised by government today, …