Franchising continues to show its resilience despite four years of recessionary restraints. According to Vera Valasis, executive director of FASA, "The continued growth of new franchise concepts proves that franchising is the entrepreneurial heart of any economy - its growth might be temporarily curbed due to the recent economic recession but it remains the one business sector that is always innovating and has the highest success rate."
Jan Davel, FASA's new chairman and MD of RealNet, is upbeat about the future of franchising. "There is no question that franchising can and is making a marked difference in driving the South African economy. If we consider that in two of the toughest economic years (2008 - 2010), according Bendeta Gordon of Franchize Directions and her Franchise Factor, franchising added more than 2 200 new franchised business outlets, is performing well above the norm and will continue to do so."
Davel believes that on a global front, our changing world is opening up opportunities on the franchise horizon. "As spending patterns change, entrepreneurs will be looking at business sectors where there is an appetite for franchising and flourishing new industries will start to see the light. Niche markets are also offering one-of-a-kind franchises that give one the opportunity to get in on the ground floor of a new franchise trend."
New concepts that have joined FASA include:
One of the driving factors of the increased interest in membership is the Consumer Protection Act, which became law in 2011 where companies must comply with the franchise requirements of the Act and its Regulations. FASA hence plays a crucial role in ensuring, through the membership vetting process, that members comply with not only the CPA but with all other legal requirements applicable in South Africa as well as conforming to international franchise standards.
For those considering taking the leap, by either starting a franchise or buying into a franchise, the association runs franchise workshops. For more information, go to www.fasa.co.za.
