Aim to boost SA franchises

The project aims to address concerns that the number of home-grown franchised businesses is low, albeit that the demand from franchisees is thriving.

Kobus Oosthuizen, the new chairperson of Fasa, says there are many innovative and interesting businesses in SA ripe for expansion, but owners don't have either access to the know-how needed to franchise a business or the capital to get them going.

"The risk is that the business' potential growth is stultified or that the business owner embarks on a franchise route that may turn out to be seriously flawed," said Oosthuizen in a statement.

From single business to franchise

Eleven Fasa members, including First National Bank (FNB), will be actively involved in the project. Also, the association will approach the Department of Trade and Industry (DTI) to match the industry funding rand for rand.

The money will be used to fund the learning initiatives and specialist advice that will be provided to the new franchisors.

"Bearing in mind the pressing need for more jobs in our country and the fact that franchising is a good source of secure new jobs, we are sure that government will recognise the value of the Fasa project and support us in this initiative," says Oosthuizen.

"We will be identifying businesses that have a franchisable concept, but in which the owner needs assistance and support to get the franchise going," says FNB's head of franchising, Riaan Fouche.

Five businesses will be selected each quarter, with the project providing learning support and a franchising consultant who will help the business owner through the process of becoming a franchisor.

Once the viability and "franchisability" of a concept have been investigated and researched, only then will the franchise development work commence. This includes the disclosure document, franchise agreement and franchisee operations manual.

Benefits for economy

While stimulating economic growth through the establishment of bigger businesses, the project will also create opportunities for emerging business people who would otherwise struggle to expand their businesses.

Fasa also aims to bring more businesses into the organisation as members, since this will improve the integrity of the industry.

Membership entails meeting certain minimum standards regarding the running of the franchised business. This applies to both new franchisors and existing ones who can improve the way in which their businesses are structured.