Is franchising a get-rich quick option?
Don’t assume a franchise is an easy, risk-free option – you’ll still be responsible for running your own business and making it successful through hard work.
How do I make sure I am buying a bona fide franchise?
Use professional advisers in the form of auditors and franchise lawyers to check the financials and legal documents.
What is the franchise success formula?
Success comes when franchisors and franchisees work together towards the common goal of achieving success for themselves and their brand through a concerted and well-documented business strategy.
Is it really a franchise?
Be careful that a get-rich-quick business opportunity is not passed off as a franchise. In a sound franchise, the following must be present:
- the product or service must have a respected name and an established trademark
- A franchise will charge an upfront fee and ongoing management fees.
- In return a franchise will give full training and ongoing support and control.
Where can I shop around for the best franchise?
FASA holds their annual International Franchise Expo (IFE) each year which features close to 100 franchise and business opportunities, with experts on hand to assist in answering questions and training seminars to help potential franchisees understand the business of franchising. You can also visit the FASA website where we list all our accredited members as well as other franchise opportunities in South Africa.
There is only one question you should be asking…. are you a member of FASA?
With franchising now covered by the Consumer Protection Act (CPA), being a member of FASA is becoming more relevant as FASA is committed to:
- Upholding ethical standards of practice through its Code of Ethics.
- Providing information to the public about franchising and franchise opportunities.
- Protecting the public and potential franchisees against unscrupulous operators.
- Promoting the franchise business system and its contribution to the country’s economy through entrepreneurship, skills development and job creation.
- Keeping current with international franchise developments.
Who does FASA represent?
Membership of FASA is open to:
- Practicing franchisors with a proven trading and franchise record
- Developing or new franchisors in the process of developing a franchise business.
- Professional Service Providers – these include law firms, banks, financial institutions, insurance companies, franchise consultants, brand & marketing companies and IT companies.
- Franchisees – whether their franchisors are FASA members or not.
Product suppliers who supply the broader franchise market.
What are the risks involved in buying a franchise?
Whilst there are no guarantees in business and this applies to any business – franchised or not – franchising, with just a 10% failure rate compared to a 90% failure rate in independent businesses, is a much safer option.
What financial help is available for investing in a franchise?
- Most of the commercial banks have franchise divisions equipped to assist with funding.
- Many franchisors have funding initiatives in place to assist franchisees.
- Financial institutions and venture capitalists also provide alternate funding options.
- Government agencies have established public/private partnerships to assist pdi franchisees.