The Franchise Association of South Africa (FASA) is the oldest internationally recognised Franchise Association on the continent, responsible for the roll-out of ethical franchising in South Africa. The Association holds the distinction of being one of the first countries globally to adopt a Code of Ethics and Business Practices. With franchising globally accepted as one of the most successful business formats, FASA franchise accreditation is imperative for South African franchises. FASA’s role is to continuously promote the advantages of franchising to business entrepreneurs, prospective franchisees, and to the public at large. The Association protects, lobbies, promotes, and develops ethical franchising across all sectors in South Africa, specifically focusing on transformation.…

In the business realm, various strategies and methods are employed to expand a company’s reach and market presence. Two popular approaches for expanding a business are licensing and franchising. Franchises and licenses are both business agreements in which certain brand aspects are shared in exchange for a fee. The key difference with franchising verses licensing is that a franchising agreement pertains to a business’s entire brand and operations. A licensing agreement conversely only applies to registered trademarks. Delving more into the differences between licensing and franchising; franchise agreements involve an extensive business relationship between the franchisor and franchisee. However, license agreements are limited and relate to a singular activity, including…

It is vitally important to know how to franchise a business idea to ensure steady business and long-term customers relationships. Franchising is a type of agreement that reproduces a successful business model across multiple locations. Franchising is a contractual business model or relationship whereby an established brand, known as the ‘franchisor,’ allows an independent business owner, the ‘franchisee’, to use its branding, business model, and other intellectual property. In return, the franchisee agrees to pay an upfront franchise fee, and ongoing royalties to the franchisor. In this way the franchisee enjoys low risk and a support system, and the franchisor enjoys expanding their business idea. The franchisee is instantly propelled…

The first step to turning a business into a franchise is understanding that a franchisor is the original business, and it sells the right to use its name and concept to the franchisee. The franchisee buys this right to sell the franchisor’s goods or services under an existing business model and trademark. Turning the business into a franchise is very lucrative avenue in South Africa, as it allows for business expansion of an increased scale, better market penetration, simpler management, and decreased costs. Steps to Turn your Business into a Franchise: Like every profitable business decision, franchising and the decision to franchise your business needs to align with your long-term…

Franchising is an agreement or license between two legally independent parties; a franchisor, who establishes the brand’s trademark and business system, and a franchisee, who does business under the franchisor’s name and system. Franchising is an excellent way of expanding a business that is already successful. This business model allows businesses to branch out and grow, whilst providing entrepreneurs and smaller business owners with an opportunity to run their own operations, with the help and support of a larger organisation that possesses a proven formula for success. This is because franchises have an established brand and reputation that attracts customers and builds trust. Franchisees in this way, benefit from the marketing and…