The year in review – why franchising still matters
Looking back over the past year can be fraught with frustration as we see the hurdles that business has had to overcome just to keep ahead of the curve. Despite and in spite of all the challenges, one needs to acknowledge that franchising has afforded tens of thousands of entrepreneurs the opportunity of operating thriving businesses – thanks to its adherence to strict principles and to tried and tested formulas has stood the test of time, that include:
Franchising as an employment solution is important to our economy as it is the perfect mechanism for skills transfer and job creation. With an education system that prepares students for employment by government or large companies and ahead of a future of disruption that is changing the status quo, being an employee is not only limiting in terms of self-expression and earnings power, but it also lacks true security.
Franchising as an entrepreneurial wealth creator means that, if implemented correctly, franchising is a great business mechanism to create wealth for ‘unnatural’ entrepreneurs. Compared to a startup independent business which has only a 10% chance of success at its start, franchising’s success rate of 90% is one of the highest worldwide, affording people from all walks of life, who never thought they could be business owners, the chance to become successful entrepreneurs – to a lesser or larger degree.
Franchising can unlock untested concepts in growth categories and help grow the economy in a myriad of different business sectors. Representing around only fourteen different categories, franchising, with the correct implementation by those setting up the franchise concept, has the potential to open up new avenues for business growth and contribute to the stability and growth of the country.
Franchisor/Franchisee balance is the key to a successful franchise and franchising will succeed if there is a win-win formula for both parties. Selectivity, consistency and engagement are essential for finding great franchisees and growing relationships with them. The most important thing isn’t necessarily finding new franchisees; it is managing and nurturing existing franchise relationships.
Communication and culture the key to successful franchising worldwide as it is all about values that mean something. When a franchisor recruits franchisees, the culture needs to resonate and be instilled in franchisees’ daily operations to ensure that standards are maintained for the long-term success of the brand.
To protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation.
