Accredited Franchisor Membership

Why should you Join

Franchise companies that operate in accordance with ethical business practices and comply with the legal and regulatory requirements of the South African business landscape should be recognised for their compliant business policies in the franchise industry. Membership of the Association gives credibility to franchises that have provided the Association with a written undertaking to abide by its Code of Ethics which is derived from the Code of Ethics set down by the World Franchise Council. South Africa has been a long-standing member of this world body.

What does it mean to be a member

Membership provides a clear distinction between ethical and compliant franchise companies and the rest of the industry. Potential franchisees, funders and landlord’s prefer to deal with accredited members of the association as membership provides risk mitigation and comfort to stakeholders and potential franchisees.

Full membership accreditation is granted to established franchise companies. A thorough assessment of each applicant franchise company is conducted before accreditation. This would typically include assessment of the viability of the concept as well as the presence of the appropriate compliant documentation being:-

1. A disclosure document developed in compliance with the Consumer Protection Act’s Regulations as well as the requirements of the Franchise Association of South Africa’s Code of Ethics The disclosure document requirements can also be accessed by clicking on this link.
2. A fair and reasonable franchise agreement drafted in accordance with the requirements with the Consumer Protection Act’s Regulations as well as the requirements of the Franchise Association of South Africa’s Code of Ethics.
3. A comprehensive and well developed Operations/Training/Procedural manual. A list of contact details of professional franchise consultants’ if assistance is required in the development of manuals.
4. The applicant franchise company must have been in operation for no less than 24 months and is required to submit a copy of the company’s latest financial statements.

It is to be noted that international franchise brands that are members of their country of origin’s franchise association, do not automatically quality as members of the Franchise Association of South Africa.

List of required application documentation for franchisors applying for full membership accreditation:

1. Completed and signed membership application form for full franchisor membership.
2. Copy of the latest franchise agreement.
3. Copy of the latest disclosure document.
4. Completed and signed member’s declaration which must be printed on the company’s letterhead.
5. Completed free entry form – this information is published on the Association’s website under the Franchise Directory link as soon as the application has been approved.
6. Copy of the franchise company’s latest financial statements.
7. Comprehensive list of the contents or index of the franchise company’s operations/training/procedural manual/s.
8. Membership fees are R21,853.75 or R1,821.15 per month excluding VAT.  Kindly note however, on submission of an application for membership, the annual membership fees are payable in full upfront as well as a once-off legal assessment fee of R5,145.00 excluding VAT. The legal fee is waived if the applicant’s franchise agreement and disclosure documents were written by a franchise attorney member of the Association – click here to verify your attorney’s membership status.

Once all the membership requirements have been met, the application documents are submitted to an experienced franchise attorney member for scrutiny and to check compliance. Usually within two weeks after submitting the application documents, an evaluation letter from the relevant attorney is made available to the applicant.
Once the applicant has submitted amendments recommended by the franchise attorney (if applicable) the application is processed for final approval.

If a franchise attorney member wrote the applicant’s franchise agreement and disclosure documents the above process is waived. However, the applicant’s franchise agreement and disclosure documents are still submitted to the relevant franchise attorney member who wrote the applicant’s documents, for verification.

As soon as an application has been approved, the applicant is informed of the successful application by way of a welcome letter as well as the association’s corporate identity information.

Thereafter the applicant company’s details are published on the Association’s website under the Franchise Directory’s Accredited Franchises link, as submitted by the applicant by way of the free entry form. The member is added to the member database to receive ongoing information and communication from the Association.

Should an applicant not comply with the requirements of the membership application process as listed under “Required Application Documentation” within a maximum of 3 months of first having submitted the application, the application would be rejected and deemed unsuccessful.

Should the applicant refuse to comply with or neglect to submit the recommended amendments made by the evaluating franchise attorney to ensure the franchise agreement and disclosure documents in particular comply with the requirements of the Consumer Protection Act’s Regulations and the association’s Code of ethics, within 3 months of having submitted the evaluation letter to the applicant, the application would be rejected and deemed unsuccessful.

In the event of an unsuccessful or rejected application, the Association would refund a portion of the membership fees paid by the applicant, minus an administration fee of R4,500 excluding VAT. The once-off legal fee paid by the applicant (if applicable) is not refundable.

What happens to my money if my submission was unsuccessful?

In the event of an unsuccessful or rejected application, the Association would refund a portion of the membership fees paid by the applicant, minus an administration fee of R3,500 excluding VAT. The once-off legal fee paid by the applicant (if applicable) is not refundable.

Once the above list of documents have been thoroughly checked and are ready for submission, click on the apply for membership button and submit your application form.

An acknowledgment email will be sent to the applicant confirming receipt of the submission documents.  Fees are payable within 48 hours of having received the submission.