How to franchise
your business in South Africa
Unlike other countries, South Africa doesn't
have specific laws that regulate the Franchise industry.
The control lies mostly with the Franchise Association of
South Africa (FASA) and it is advisable to become a member
when you wish to franchise your business.
When can you franchise your business?
You need to develop a concept and manage
it or the business for at least a year before you franchise
your business, although three years are better. The
potential franchisee will want to see proof that the concept
is working and the longer you are in business, the better
proof you have.
This stage is called the development phase
and the business is known as the pilot project. It is a
crucial phase since it helps you as franchisor to identify
and correct potential problems, create a workable system
and manuals and to bring your image, product and service
in line with the market. Apart from this, you will be able
to experience the business from the franchisee's perspective
and thus be able to provide better support and training
when you franchise your business.
The following manuals and agreements
need to be developed:
Each of the above manuals and agreements
should be developed before you franchise your business concept.
Since the legalities can become extremely complicated, you
should consult with a lawyer who specializes in franchises.
The length of the whole process depends on the type of business
or concept, finances available and correct planning.
Why franchise your business?
To franchise or not to franchise your
business?
Before you start the process, evaluate the
viability of the concept or business: