Do viability study of franchise business
Fasa promotes ethical franchising
Sowetan spoke to the Franchise Association of SA(fasa) about the work it does and tips on what to look out for when attempting to get into a franchise.
Fasa advises that the franchisee should do their own viability investigation regarding the franchise business, the location and in relation to the franchisor.
The franchisee is advised to speak to existing franchisees to ascertain if they are happy with their franchisor, are successful and make sure that they fully understand the terms of their agreement. What is the work of Fasa? Since its establishment in 1979 Fasa has been dedicated to the development and promotion of ethical franchising, as well as guiding and safeguarding the reputation of this valuable sector. Without statutory powers, Fasa can only regulate and enforce its own code of ethics and business practices on its members, who voluntarily commit themselves to operating competent and ethical business, says Fasa chairperson Pertunia Sibanyoni.
How does Fasa mediate between a member and complainants?
Franchise companies that are members of Fasa have to abide by the association’s code of ethics and business practices, their disclosure documents would have been scrutinised to be compliant as the association ensures that a franchisor’s documents are all fully in line with the regulations of the Consumer Protection Act – and if they needed help and assistance by way of a mediation session, it is offered totally free of charge to members, says Sibanyoni.
What help is available for an individual that has issues with a franchisor that is not a member of Fasa?
Fasa offers voluntary dispute solution services at a cost of R30,000, excluding valueadded tax, for complaints against non-accredited franchisors. Mediation is a voluntary dispute resolution mechanism so parties to a complaint cannot be forced to attend a mediation session. If a franchisor opts not to be part of the process, the complainant can go the legal route. Fasa, however, is not able to offer dispute solution services if either party has already instituted legal proceedings against the other, says Sibanyoni.