By Zuko Komisa
What you need to know about buying into a franchise.
A franchise is a kind of license that enables a franchisee to use the franchisor’s brand name to sell goods and services by having access to the franchisor’s secret business techniques, procedures, and trademarks.
In South Africa, franchising has long been a well-liked path to entrepreneurship success, with over 800 franchise systems running over 48 000 shops there.
Kaya Biz with Gugulethu Mfuphi spoke to Freddy Makgato, CEO of the Franchise Association of South Africa (FASA) about the operating environment franchises find themselves in.
LISTEN TO THE FULL CONVERSATION HERE:
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You are a business
Being a franchisee entails many of the same duties as owning your own independent company, including managing workers and taking care of the logistical needs of running a company.
“When you buy into a franchise you don’t necessarily become a branch of that franchise, you are a business on your own with the necessary skill and expertise to run a franchise. What the owners of the franchise do is mentor you with regard to their brand.” says Makgato,
Make sure you do your research
“We see a lot of entrepreneurs buying into a business they don’t understand.” says Makgato,
Participate in virtual networking sessions
“We [Franchise Association of South Africa (FASA)] have multiple events, this is where you can do your shopping, we have virtual networking sessions on a monthly basis where on our website, you register, join and attend these events, its around R50. There will also be an expo in August.” says Makgato,
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