Franchising is recognized globally as one of the most aggressive forms of business expansion. It enjoys a high profile with some of the world’s most renowned brands as franchise leaders. In most countries franchising has fallen under the umbrella of local franchise associations, which in turn, belong to the World Franchise Council. This allows the business format of franchising to be controlled and good ethical practices set globally. For this very reason, franchisors, franchisees and service providers are encouraged to get accredited to a franchise association which in turn promotes them in a variety of ways including:
- The most important benefit is that membership of FASA provides credibility to member companies.
- The member may use the FASA logo and all relevant collateral confirming that the member has undertaken to manage the company according to FASA’s Code of Ethics and that franchisor companies’ documents
- By complying with FASA’s strict membership criteria, you establish yourself as an ethical franchise operator building credibility whilst growing your business.
- Offers a three hour mediation service FREE of charge in a franchise related dispute between franchisor and franchisee.
- FASA acts as a watchdog on all new and planned regulations and / or legislation and amendments and evaluates its impact on its members in particular and the industry in general.
WHY BEING ACCREDITED BY FASA MATTERS?
In franchising there are always unscrupulous entrepreneurs who, under the guise of franchising, will make empty promises and sell unethical businesses to unsuspecting business operators. One of the first questions you need to ask is “Is the franchise I am considering joining accredited by the Franchise Association of South Africa? And if not…why not?”
- FASA members voluntarily align themselves and their brands to an internationally recognized body that adheres not only to international best practices but to sound business ethics established through the Consumer Protection Bill, the Franchise Industry Code and in turn the soon-to-be-appointed Ombud for the sector.
- The fact that a franchisor that is a FASA member voluntarily opens himself, his company and his operations to scrutiny shows his commitment to running his operation ethically and along sound business principles.
- FASA members are viewed as credible operators and quality companies within the franchise community and usually accredited by the major banks and lending institutions.
FASA makes a thorough assessment of each applicant company before membership is granted. This would typically include a look at the viability of the concept as well as the presence of appropriate documentation, with the minimum requirements being:-
- The viability of the concept and that the company has a pilot operation operating for at least a year;
- Has a disclosure document that complies with FASA’s stringent specifications and complies with the Consumer Protection Act.
- Has a fair and reasonable franchise agreement that clearly reflects the spirit of FASA’s Code of Ethics and Business Practices
Has a comprehensive operations and procedures manual.
USE THESE GUIDELINES WHEN INVESTING IN A FRANCHISE AND REMEMBER FASA MEMBERS HAVE COMMITTED TO ETHICAL FRANCHISING! Visit www.fasa.co.za to apply for membership