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In the fast growing South African industry, entrepreneurial opportunities are abundant and the franchising of these businesses is becoming ever more important as it is creating employment and stimulating economic growth.
Absa hosts a comprehensive infrastructure that is able to offer Franchisors and Franchisees more than just financial assistance. Based in all the major centres around the country, dedicated franchise experts offer advice, guidelines and other supporting services to prospective and existing business owners.
The value in this relationship lies in the after service care and maintenance available, and in realising a business opportunity, and not just a lending transaction.
Franchising
The following summaries are taken from Absa's Franchising Guide (PDF - 110kb)
Absa has compiled the Franchising Guide as a tool for Small Business owners to use to their advantage. This guide will help distinguish the differences between franchises and other business systems while providing guidelines on how to evaluate individual Franchisors.
The guide was written with input and insight gained from organisations and business owners alike. In addition to this guide, business owners may want to read some of these additional, complementary guides:
The guide looks at the legal and operating nature of a franchise. We establish the rights forwarded by the franchise in terms of trademark, business concept and operating strategy. We also look at other business principles that may appear to be franchises, but in reality are not. We uncover the disciplines involved in franchising and find out if you are suited to a franchise business. The guide looks at the advantages as well as the disadvantages of running a franchise operation. We look at a variety of different types of franchise operations and find the one that is most suited to you. We observe the benefits in consulting with specialists before purchasing any franchise. This is from a franchise management and future projection point of concern. Once the decision to move ahead is made, we list the process of approaching the franchiser to begin the process. We look at the screening and assessment process from a franchiser as well as from a franchisee perspective. We then look at the legal disclosure document that will be provided to the franchisee and the kind of information it will and should reveal. Based upon this, we identify important questions for potential franchisees to have answered by other franchise owners. The guide then identifies the feasibility and assists in outlining the costs involved in setting up the franchise. We also project expenses such as salaries, operating costs and the franchise license. Once the franchiser and you, as the franchisee, have met all requirements and the deal may move forward, we look at the Franchise Agreement, which will identify all the rights and regulations of the franchiser and the franchisee. We address the complexity of this document and the value in having it professionally assessed before sign-off. The Franchise Association of South Africa was established to provide a code of ethics and a support base for all franchises, franchisors and potential franchisees to consult with from a legal perspective. The association also adds great value to all members with regards to yearly Exposé’s and new rules to protect all parties involved. Once the deal is signed and sealed we look at the right protocol involved in launching your new franchise outlet. From the guest-list to the timing of your launch, the guide takes you through the steps.
We address potential pitfalls and assist in identifying warning signs before it's too late. Franchising is a complex business transaction and requires close monitoring throughout the process. Absa's Franchising Guide, together with the New Enterprise Bankers will assist you in making the right choice.
Useful Links
For more information of starting and managing your business.
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