Franchise Association of South Africa’s Post

A new post "Navigating Risk and Resolving Conflicts in Franchising" has been published on https://lnkd.in/g9E5tGmp

Franchising is under the media lens at the moment but there are many examples of where franchising can be a great model with life changing economic benefits or it can be quite the opposite and devastate people and families. Whilst the measures of success or lack of can be attributed to many factors including the transparency and solidity of the franchisor and the business acumen and skills of the franchisee there are too many elements and circumstances to both of these outcomes to list them. I would suggest some simple steps and thoughts to start on your journey into becoming a franchisee : There is a Franchising Code of Conduct | ACCC read it There is a Franchising Council of Australia - the site has some free resources read them. Just because you like coffee,food,dogs,realestate,gyms doesn't guarantee success because the key to business is you knowing how to run the business. You can be a great salesperson/barrista/dog walker ,for example,but running your own business requires a whole lot of other skills.If you do not have them you can always take in a business partner who does and complement each other.The franchisor supplies the tools but you need to know how to use them. Take time to act and do not become emotionally attached as the grass can always look greener on the other side.Don't believe everything you are told - think long and hard Research by picking random current franchisees and talk to them.If they are willing to allow you to shadow them for a couple of weeks even better. That way you may see the good,the bad and the ugly ( not the farnchisee or franchisor ) At the outset get good legal advice and by that I mean a lawyer/firm who has vast experience in that area and listen to their advice. Make sure you understand the numbers and seek financial advice from an accountant/firm who once gain has vast experience in franchising and listen to it. Have a financial amount as a backup in the background for the tough/unexpected times. The legal and financial will all cost you money but in the end will be far less than than the amount you lose if it does not work out and you will have set a path of success if you go ahead. Keep communication open with the Franchisor in a businesslike and transparent manner - they cannot help if they do not know. Know when it isn't working and extricate youself. Unfortunately when this happens you are usually at rock bottom both mentally and financially and do not have capacity to fight. If the issues need to be resolved the most cost effective and least mentally debilitating is to enter into mediation /alternative dispute resolution with the Franchisor to try to work together on a solution that works for both parties.Do it sooner than later. Remember Franchisors want successful Franchisees - Franchisees want successful Franchisors - the aim is common.

Franchisees and franchisors in Canada will not want to miss this article by Avneet N. and Craig Zawada, K.C. of the Procido LLP IPT Group which provides a comprehensive analysis of franchising laws, focusing on Saskatchewan, Alberta, Manitoba, British Columbia, and Ontario, shedding light on the distinct regulatory landscapes that shape the franchising sector in Canada and financing programs available to franchisees. https://lnkd.in/gaKsaXvW

Franchisees and franchisors in Canada will not want to miss this new article by Avneet N. and Craig Zawada, K.C. of the Procido LLP IPT Group which provides a comprehensive analysis of franchising laws, focusing on Saskatchewan, Alberta, Manitoba, British Columbia, and Ontario, shedding light on the distinct regulatory landscapes that shape the franchising sector in Canada and financing programs available to franchisees. https://lnkd.in/gpgKNHcg

New Zealand franchising enters 2024 more optimistic than 2023 despite some economic headwinds and challenges. For the 13th year running, Franchize Consultants’ annual Franchising Confidence Index has measured the mood of the sector, revealing predictions and insight from franchisors and specialist service providers. https://lnkd.in/gXpEJKAN

NZ franchise sector - some optimistic insights in this data. Franchising continues to go from strength to strength in NZ #nzfranchiselawyer #retaillawyer #wynnwilliams #franchisenz #franchising #retail

Franchising in Australia operates under the strict governance of the Competition and Consumer (Industry Codes – Franchising) Regulation 2014 (Cth). A failure of franchisors to comply with relevant disclosure obligations can result in civil penalties or even render franchise agreements unenforceable. Gain valuable insights from Roberto Randazzo, Lawyer at Bennett & Philp Lawyers, on navigating the crucial requirements of proper disclosure to franchisees. #franchising

Thinking about franchising in Ontario? Here's a key point to remember: The Arthur Wishart Act protects franchisees by ensuring transparency and fair dealing. This law requires franchisors to provide a detailed disclosure document outlining the franchise opportunity. The document must include all important information, and franchisees can form their own associations. https://ow.ly/VYGL50S6Tbz #corporatecommerciallitigation #contractdispute

Great to see the report released on the Franchise Sector. As someone who has played a role in the sector for many years the one item I am most pleased to see in the recomendations is something we had hoped for over many years. A compulsory licensing regime which would require franchisors to secure a license to enter the sector. This will no doubt strengthen the confidence franchisees will have as they look to enter systems in the future. This is only a suggestion to the minister - however I look forward to it being adopted and a body approved to bring the Franchise Sector into the current day and the future. The review document is large - however the vast majority of it is a steady as she goes approach - apart from this one. More detail to be highlighted as move through it in detail. https://lnkd.in/gnXfTaSM

The Government yesterday released an exposure draft of the proposed new Franchising Code of Conduct, which is slated to take effect from 1 April 2025. The exposure draft contains significant changes to compliance requirements in some areas, notably in relation to compensation for termination, franchisee return on investment, capital expenditure requirements, restraints of trade and termination. Although some proposed changes will slightly reduce compliance costs (such as the removal of the Key Facts Sheet), the ability for franchisees to opt out of disclosure/cooling off and other efforts to simplify the Code are unlikely to provide meaningful benefits. The Government has invited stakeholders to make submissions by 29 October 2024, so there is a short window to influence the final drafting of the Code. The franchise sector will need to proactively engage during the consultation period to avoid unintended consequences, and to attempt to secure genuine reductions in franchisor and franchisee compliance cost. To discuss the proposed changes and your options for contributing to the consultation process, please contact any member of the NRF national franchising team. View the materials here: https://lnkd.in/gZUmnTxF #franchising #franchisingcode #franchisingreforms #newfranchisingcode