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For us, producing this newsletter is an exciting adventure. At the beginning of every month, we tend to wonder what we will write about. Franchising is such an exciting sector, however, that come month-end, we have more material than we can accommodate. As you read on, you will see that this holds especially true for this month – the news kept coming in by the bucket load, what with the FASA awards, survey results and lots of other exciting things happening.
We also have a case study with a difference. This month's hero started out as an employee, became a franchisee and then took the ultimate leap of faith by becoming a franchisor. To find out who he is and read his exciting success story, click here.
We hope you enjoy this month's read and look forward to your comments – please keep them coming!
On 12 October, FASA announced the winners of this year's FASA Awards for Excellence in Franchising. The night – and the year that follows – belongs to King Pie who won the top accolade of Franchisor of the Year and was named Brandbuilder! Newcomer Franchisor is Vodacom 4 U, Hot Dog Caf é took the crown as Developer of Emerging Entrepreneurs and Woolworths Tzaneen was named Franchisee of the Year.
The Grapevine section of whichfranchise.co.za published a summary the very next day, and a more in-depth piece on the winners, runners up and the activities on the night followed soon after.
This article is still on whichfranchise.co.za
Anyone who attended the FASA awards evening could not help feeling that franchising in South Africa is alive and well. Figures released by Bendeta Gordon of Franchize Directions as part of an ongoing research project the Franchise Factor, make exciting reading.
There has been an increase of 24% in franchised outlets, now at 25 870 and combined sales achieved through franchised networks is R188 billion and accounts for 12% of South Africa 's economic activity.
Trade magazines the world over are providing their subscribers with tips on how to maximise sales during this period – arguably the most important in a retailer's annual calendar of activities. But retailers aren't the only ones affected. Everyone in business should take stock and map out a plan of action designed to maximise business results whilst minimising the potentially negative impact this season can have on business.
So, even if your sector does not experience the traditional Christmas rush, you need to accept that no business is immune to the effects of Christmas. This is especially so in the South African context. In reality, the holiday season stretches over a six-week period during which almost everything comes to a standstill, so you'd better be prepared!
An article in last week's Business Times suggests that South Africans take far too much sick leave. This is according to a survey conducted by health risk management company Lekana Employee Benefit Solutions. The company analysed the reasons given for taking 2 million sick days and made some disturbing findings.
Listed fast food franchise group Famous Brands reported an increase of 22% in headline earnings per share for the six months ended August 31, 2006. Management admits that interest rate hikes and increases in the petrol price have affected consumers' willingness to spend but remains confident that Famous Brands will continue to deliver above-average results.
They base this assertion on their value-for-money proposition, with average spend per head at around R30, linked to evolving social trends which place convenience and time saving above most other considerations.
As far as this newsletter is concerned, that's it for today. However, our panel of experts is standing by to answer any franchise-related questions you may have. The service is supported by some of the leading lights on the South African franchise scene including Eric Parker , Eugene Honey , Trudi van Niekerk , Anita Du Toit and Lynn Mendonça . Best of all, it is absolutely free. Write to experts@whichfranchise.co.za and we'll respond promptly, usually within 24 hours.
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