The franchise industry has experienced substantial growth in recent years and is poised to continue on this upward trend. Yet, while attracting potential franchisees is not a problem, the number of home-grown franchised businesses is a concern. It’s a concern acknowledged by the industry and one which the Franchising Association of Southern Africa (FASA) is tackling head-on in a new project set to be launched by mid-year.
Kobus Oosthuizen, the new chairman of FASA, explains that, while there are many innovative and interesting businesses in South Africa, there are numerous situations in which owners want to expand, but have neither access to the intellectual property 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. After all, franchising a business concept is not something to be done in a half-hearted way. The legal and tax issues are quite unique in the case of a franchise and specialist knowledge must be sought in order to ensure you have a strong and sustainable franchise.’
Read more about the Learning support.
No comments yet.