Category: Franchisor & Franchisee Relationship

Elana Koral, founder of Franchise Coaches and a co-sponsor of FASA’s Franchising in Africa conference held in August shared interesting insights into the franchisor/franchisee dynamic. “The franchisor/franchisee relationship is like a tug of war,” says Elana “with a power struggle between the franchisor and the franchisee in achieving their respective goals. It’s because one party has naturally more power and more control than the other – with the franchisor holding the intellectual property and the goodwill so naturally they are in a stronger position within the relationship.” Elana KoralElana Koral has been involved in the franchise industry for over 25 …

In response to the article, Are Franchisors undermining their franchisees with unreasonable demands? that focused on the challenges that face franchisees in these trying times when their franchisors impose unreasonable expenses such as store re-vamps in accordance with their contracts, Tony Da Fonseca, MD of the OBC Group and immediate past chairman of FASA sets the record straight and shows how revamps, done the right way, can have positive results for all. “As a franchisor who takes his role seriously, I was slightly taken aback when reading an article that appeared in a recent edition of the FASA newsletter. Flighted …

In this tight economy where franchisees are having to contend with a myriad of challenges, the demands of franchisors on their franchisees in relation to contractual clauses such as upgrades and revamps are causing concern. The Franchise Association of South Africa receives calls from existing franchisees sometimes that really seems quite concerning once one hears how they have apparently been treated by their franchisors. A typical example of such a call the Association receives frequently is made by a franchisee that refused to disclose their details especially the franchisor in question – many quite openly say they fear intimidation and …