A warm welcome to the third edition of our newsletter for franchisors! To ensure that we give you material that is relevant to your needs, our selection of topics was influenced by questions visitors to our site posed to our resident experts.
First, we examine what the Competition Act says about franchising. The timing of this article was triggered by remarks made by a representative of the Competition Board at a recent FASA event. He expressed serious reservations regarding franchise practices which, however, are central to the viability of many franchise operations.
To cloud the issue further, the speaker went on to assure those present that the Competition Board appreciates the positive role franchising plays in growing our economy. Sounds almost schizophrenic but, given the Competition Board's awesome powers, we'd better take its utterances seriously. In this vein, we have analysed the Competition Board's latest statements and give you our take on it below.
To cheer you up after this bit of heavy reading, we bring you a typical franchise success story. Taste Holdings, owners of the Scooters Pizza and Maxi's brands, have grown into serious contender in the fast food sector in record time. They have achieved this with the help of franchising!
Other news of interest to franchisors include details on the Franchise and Business Opportunities Exhibition which takes place at Gallagher Estate, Midrand, shortly, and the FASA Awards for Excellence in Franchising, to be presented in October. We also draw your attention to a tax amnesty offered by SARS.
As usual, this newsletter closes with an invitation to you, our readers, to make use of our information service. Is there something you would like to know about franchising but don't know whom to ask? We have a panel of experts on tap that will deal with your questions speedily, professionally and without any cost or obligation. So what's stopping you from firing off an email to us?
It's no use denying it — on the face of it, the typical franchise agreement contains not just one but several clauses which the Competition Commission may consider anti-competitive. This begs the question: does this render these clauses automatically invalid, or even illegal? We would like to believe that the answer is an emphatic “no” but it's a little more complicated than that.
This company celebrates its sixth birthday this September. Of course, a sixth birthday is ordinarily not a milestone event but the company's rapid growth makes it special. According to a press release, Scooters Pizza is about to open its 100 th restaurant shortly. This is a remarkable success story, especially if one takes into account that when the first Scooters store opened its doors for business, it moved into a target market that was widely seen as overtraded.
The Franchise and Business Opportunities Expo takes place from Thursday 7 th — Sunday 10 th September 2006 at Gallagher Estate, Midrand. Admission fee is R30 and opening hours are 10h00-18h00 from Thursday to Saturday and 10h00-17h00 on the Sunday. If you do visit, be sure to call in at the whichfranchise.co.za stand , to be found next to the Absa Bank stand!
The prestigious FASA Awards for Excellence in Franchising will be presented on 12 October 2006 at the Sandton Convention Centre. Awards are offered in six categories —
Should you suspect that any one of your franchisees has been less than diligent with his or her obligations vis-à-vis SARS, now is the time to encourage these individuals to put matters right. Although tax evasion was a recognised national sport in the past, it is becoming increasingly dangerous to continue this practice.
Exciting new master franchise opportunity in retail
Plastic Box, a successful retail chain in New Zealand , has plans to expand into South Africa with the brand House Ware World and is looking for a master franchise in SA. The chain is focused on home ware and storage solutions at affordable prices. There are 35 successful Plastic Box outlets in New Zealand . The stores mostly operate from value marts and retail strip centres. With distinctive branding and a look and feel unique to the brand, the stores are highly visible and recognizable.
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