FASA’S government and stakeholder engagements

A major part of FASA’s work is to liaise with government and expand on the important role that the franchise sector plays in entrepreneurship, skills transfer and job creation. Fred Makgato, FASA’s CEO’s primary mandate is to manage the relationships with the various entities in government for the mutual benefit of both and outlines his engagements and FASA’s ultimate vision for future growth.

“FASA took the decision to identify the relevant departments that could drive franchising as a preferred business model for economic development and recovery. The Department of Small Business Development was chosen as its mandate is to develop small businesses. FASA realised that the majority of franchisees are indeed small businesses and other upcoming franchises also fall within this category.”

Great efforts were made to connect with the Department through the Minister’s office and an introductory meeting was held in December 2022. A working committee comprising of departmental officials and representatives and from FASA was formed to engage the nature of the structure and processes to be put in place in establishing a collaborative framework. The committee was meeting on monthly basis and the MOU was finally concluded in September 2023. This MOU is now being reviewed by the Department internally as the Minister’s office prefers the memorandum of Agreement.

FASA is currently engaging the Department of Trade, Industry and Competitions with regard to accreditation of the Franchise Industry Code and establishment of the Franchise Industry Ombud office. The purpose of this engagement is to create a reliable and independent structure for complaints administration. This step will bring much credibility to the reputation of the industry by eradicating unethical practices within the industry.

Services SETA

The engagement is ongoing and the MOU is now in the final stages to be signed by both FASA and the Services SETA. The purpose of the MOU is to ensure that the parties clearly outline their intention and responsibilities of providing training and support to aspirant entrepreneurs and businesses. Capacitation of the upcoming business is crucial to the development and growth of the franchise industry in that new franchise systems will be identified and developed as well as new product innovations which will contribute to improvement of new product offerings. It is important to note that we are still waiting for the South African Qualifications Authority to accredit the Franchise Manager Occupational Training Module that will enhance training of managers and aspirant entrepreneurs about the mechanics of operating a franchise business.

ProudlySA

FASA participates in ProudlySA’s annual Localisation Summit and in 2023 was awarded a Pledger Certificate. Presented by the Deputy President of the Country, Honourable Paul Mashatile, this was in recognition of the contribution by the franchise industry to the economy. FASA also attended the Local Wine Expo organised by ProudlySA in July 2023 wherein FASA was on the panel to discuss the opportunities in the supply chain within the franchise industry in so far as winery is concerned.

FASA’s Vision for 2024

FASA identified the following critical areas for 2023/2024 so as to guide its focus and those are:

Serious Commitment to Private / Public Collaboration in relation to Access to Market;
Affordable and Responsive Funding approach; and
Training and Developmental focus on entrepreneurship

It is undeniable that our economy, as affected by various geopolitical events, is restricted. The above stated areas are intentional in that FASA and the industry are committing to make a sound contribution to the recovery of our economy. To this end, FASA embarks on the journey of meeting different stakeholders thereby organising and attending industry events.

In order for us to activate Access to Market through Private / Public Collaborations, we have to attain various entrepreneurial events where entrepreneurs discuss market opportunities to understand their challenges. Events like the Local Wine Expo organised by ProudlySA, Kasi Entrepreneurial Summit in Palm Springs organised by Youth of Evaton, Franchise Entrepreneurial Competition organised by Tshwane North TVET College. From these activities, we are able to put in plans to drive the focus going into 2024.

Regarding the Affordable and Responsive Funding approach and together with Training and Development, we engage the Department of Small Business Development and INANI Talent and Business Incubator Accelerator robustly and have established a working committee to drive the engagement process. We have concluded the Memorandums of Understanding with these parties . However, the Memorandum with the Department is held in abeyance as the Department is investigating the possibility of concluding a Memorandum of Agreement instead of a MOU.

It is acknowledged that one of the major issues affecting the industry is the continued and unabated threat of scammers targeting potential investors/franchisees. FASA engaged with the Consumer Goods Service Ombud (CGSO) with a view to collaboration in the administration of the Franchise Industry Code (FIC). The CGSO advised that they are currently not in a position to add the Franchise workload on their system. We are engaging with the Department of Trade, Industry and Competitions for the FIC to be accredited in terms of section 82 of the Consumer Protection Act. This step will help in the establishment of a Franchise Industry Ombud that will be empowered to investigate complaints and issue recommendations. It is so disturbing to engage with entrepreneurs who were scammed by fraudsters claiming to be franchisors. The envisaged accreditation will ensure that FASA continues to serve its members and the industry the best possible way and complaints be handled by a dedicated team with speed and accuracy.

The resuscitation of the culture of events attendance will continue into 2024 on the back of a successful 2023 with the organisation of four Breakfasts sponsored by Absa in different provinces (Mpumalanga, North West, Limpopo and Gauteng), the FASA Golf Day and the ‘Road to Recovery’ Conference. We are delighted to see the kind of response and interest in the Franchise Events.

For 2024, we are looking at strengthening our engagement with other Government Departments and Agencies in driving franchising to be the centre of economic growth in the country. We are also looking at engaging Women and Youth business groupings so that we tighten our collaborative efforts towards the upliftment of previously excluded entrepreneurs. We are also excited to be hosting the International Franchise Entrepreneurial Expo in 2024 at Gallagher Estate, Midrand on 20 – 21 July 2024.

LET US MEET AND DO BUSINESS IN 2024!!!