Franchising is recognised globally as one of the most aggressive forms of business expansion. It enjoys a high profile with some of the world’s most renowned brands as franchise leaders. In most countries franchising has fallen under the umbrella of local franchise Associations, which in turn, belong to the World Franchise Council. This allows the business format of franchising to be controlled and good ethical practices set globally. For this very reason, franchisors, franchisees and service providers are encouraged to belong to a franchise association which in turn promotes them in a variety of ways and provides many networking opportunities.
Benefits of being a Member
The most important benefit of being an accredited member of the Franchise Association of South Africa is the recognition and credibility given to companies that bind themselves to ethical business practices and being compliant with the applicable laws and regulations for business in South Africa. The association continuously markets, promotes and showcases the difference between ethical and compliant businesses and the rest of the franchise industry.
Potential franchisees, customers and clients, development funders, banks and other stakeholders prefer to do business with accredited members as it provides them with risk mitigation and peace of mind.
In addition, members enjoy benefits like membership fee discounts and many others as listed below:
Listed below are the benefits of becoming a FASA Member
- 1. Credibility
- 2. Public Relations and Marketing
- 3. Dispute Resolution
- 4. International Franchising Resources
- 5. Extensive lobbying function
- 6. Annual Franchise Surveys
- 7. Member Referral Discount
- 8. Learnships and Incubator Funding
- 9. Discounts to Attend Events
- 10. Document Assessments
- 11. Proudly SA 10% Discount Offer
- 12. Special Discount Offer from LWO Employers organisation
Franchise companies are required to provide a written undertaking when they apply for accreditation to abide by the association’s Code of Ethics. Furthermore the franchisor’s franchise agreement and disclosure document are scrutinised on application, to ensure that these documents comply with the applicable laws and regulations in South Africa with specific reference to the Consumer Protection Act’s Regulations.
Although the Consumer Protection Act’s Regulations were promulgated in 2011, the department of trade and industry through the office of the National Consumer Commissioner does not currently police compliance for franchises. Therefor compliant and ethical franchise companies are distinguished by way of accreditation by the Franchise Association of South Africa, between franchises that do not publicly declare compliancy and ethical business practices and those that do.
Accreditation of franchises is of paramount importance to:-
- Potential and existing franchisees
- Development funders and banks
- Industry stakeholders
- Potential and existing franchisees, banks and funders prefer to do business with accredited, compliant and ethical franchise companies as the association also provides free mediation services should things go wrong as they sometimes do. Mediation is a voluntary dispute resolution process usually outsourced by the association to experienced franchise mediators.
The Association offers various valuable and effective free marking platforms exclusive to members as follows:-
The Annual Franchise Manual
The manual is a publication with longevity as it is seen by the purchasing public as a valuable source of information and knowledge. It is made available at franchise expo’s managed by the Association and other franchise related events being held from time to time.
The Franchise Manual is offered for sale on the Association’s website in hard copy or as an eBook.
Additional free copies are made available to members on request if they want to hand them to potential franchisees during the interviewing process.
Members receive a FREE full colour quarter page insert in the Manual showcasing their accreditation status.
FASA Member Listing
All members’ information as provided to the Association by the member, are published at no cost, on the Association’s website under the ‘Franchise Directory’ link. A reciprocal website link to the member’s website is included in the online listing.
The franchise awards provide a highlight in the annual franchise calendar every year. Finalists and winners of the various award categories gain huge exposure in the media valued at millions of Rands (source NewsClip). Entries are offered free to members.
Despite the popularity of online marketing, exhibiting at a franchise expo is still one of the most successful marketing tools for franchises looking at securing franchisees. The Association owns the most longstanding franchise expo on the continent which is a major franchise event. All members brand logo’s are published and promoted as accredited franchises at the Association’s stand at franchise expo’s. The event generates ongoing media exposure especially on social media for exhibiting brands. Members receive negotiated discounts on the cost of an exhibition stand and receive stand location and marketing preference. The Association usually invests in franchise expos as one of its major marketing investments.
Speaking opportunities at the franchise convention and at franchise expos are offered to members on a first come first served basis. Speaking or presenting at a convention or expo is a fantastic marketing opportunity which offers credibility and authenticity to members at no cost.
FASA Newsflash Newsletter
The Association publishes a newsletter every two weeks which is sent to over 30 000 recipients. Members who submit newsworthy articles or information to the Editor of the NewsFlash (send submissions to email@example.com), if published, receive the insert free of charge.
Information published in the newsletter is also published on the Association’s social media platforms. Video’s recorded of presentations at Expo’s, with the permission of the speaker, are also published on these platforms.
Members are invited to participate as sponsors in respect of the various franchise events like expo’s, seminars, workshops, ‘win-a-franchise’ competitions, the annual golf day, awards, publications and surveys. The Association generated just over R32m AVE on behalf of its members in 2018. (source NewsClip).
One of the great benefits offered by the Association that is often underestimated is free mediation services.
Disputes and disagreements between franchisors and franchisees happen from time to time but finding a solution is not often straightforward. This is where the Association relies on some of its legal expert members who are also qualified mediators to offer a solution. Access to specialist franchise attorneys’ expertise comes at a fee but the Association carries the expenses related to mediation sessions so it costs members nothing to engage the services of mediators to find a suitable solution to disputes, apart from their own direct costs like travel expenses for example.
The Franchise Association of South Africa is a long standing member of the World Franchise Council and can provide members who want to expand to territories outside South Africa, with contact and networking information in 47 countries around the world.
The Franchise Association of South Africa is a member of the Small Business Institute (SBI) as well as South African United Business Confederation (SAUBC). Together with nominated members, it supports industry representation by serving on the relevant SAUBC committees to raise important issues, canvass opinions and comments from members and influence government structures who are law writers on matters that affect small business.
Annual studies are conducted amongst franchisors and franchisees. The studies commenced in 2012 and the annual results are available by way of a free download link on the association’s website. The information is seen as very valuable by all stakeholders and used very regularly in various marketing mediums. Members are encouraged to participate in the survey as participating franchisors may on request, receive free specific sector information if it is available from the service provider, ResearchIQ.
Members who successfully influence and encourage non-members to join the Association, can receive a 10% discount on their membership fees for the ensuring year, for every member referral signed up.
Through the ServicesSeta the Association has secured a seat on the business chamber and submitted an application for funding for 1500 learnership over three years which would be offered to interested members. It is working with SEDA to submit an application for incubator funding which once again would be offered to interested members. Participation in these projects could reduce a member’s labour costs as well as provide a tax rebate benefit.
Members receive preferential rates at events hosted by the Association.
Members who joined the Association before 2011 may submit their franchise agreement and disclosure document for a compliance assessment from time to time at no cost.
Proudly SA offers members of the Association a 10% discount on their first year’s membership fees, and a 20% discount for those signing up for a two-year membership.
Special Discount Offer from LWO Employers organisation which specialises in labour law compliance and representation at the CCMA.
FASA members recieve a 20% discount on the once-off joining fee when joinng the LWO.
Membership with LWO is vested in the legal entity, irrespective of the number of employees. The cost structure is two-fold:
- Once-off joining fee of R2 663.00 (with the 20% discount on the once-off joining fee, FASA franchisors will only pay R2 130.40 (including VAT)
- Annual membership fee (also payable monthly) according to the membership package best suited to the employer’s needs – there are five packages to choose from, with the Basic package’s annual fee being R2 868.00 (or R239.00 monthly x 12)
The LWO assists employers to comply with labour law and typical services include:
- Upon joining, every member receives a labour audit (“information and implementation session”) where a qualified legal advisor does a full analysis of your employment contracts, rules, procedures, registration, etcetera to identify any gaps or risks. All labour law documentation is provided and explained, we discuss it with you and get your input regarding your unique needs and implement it in the workplace. You also receive the 3 labour law posters that must be displayed in the workplace (Basic Conditions of Employment Act, Employment Equity Act, Health and Safety Act), as well as a disciplinary code with offences and sanctions. We ensure that your workplace complies 100% with labour law.
- Free purpose-built employment contracts and other labour law documentation.
- Making and implementing rules in the workplace.
- Enforcing discipline – consultations, warnings, disciplinary hearings.
- Representation at the CCMA, Bargaining Councils and Labour court.
- We provide assistance with: restructuring, retrenchment, trade union negotiations, strikes and Department of Labour inspections
Our number 1 service is of course the free 24/7 legal advice helpline where our members can phone at any time, as many times as needed, and speak directly to a qualified legal advisor.
If you are interested in contacting LWO about this special offer please emailAnsofie van der Walt