The FASA stamp of approval

How do you benefit if your franchised real estate agent is a member of the Franchise Association of South Africa?

By Jan Davel

Some franchisors include ‘accreditation’ and ‘award’ symbols in their advertising material, relying on the consumers’ and prospective franchisees’ lack of knowledge with regard to the significance or importance of such symbols. Some of these commonly used symbols offer no benefit to consumers and often its relevance to the franchisor’s industry is dubious. Whether intentional or otherwise, the use of such symbols may also be misleading.

It pays for prospective franchisees to be informed about the value such ‘accreditation’ and ‘award’ symbols actually afford a franchisor. In other words, don’t take everything at face value and be sure about the accreditations your future business partner actually enjoys.

Take the real estate industry as an example. With the transformation of this highly lucrative, but potentially risky industry into a highly regulated and professional fraternity, the spotlight will hopefully move in the right direction, with customers and participants probing for the right type of accreditation.

Since the board of the Estate Agency Affairs Board (EAAB) was dissolved and the organization placed under administration by Human Settlements Minister Tokyo Sexwale, many people are unsure of the current status of the industry regulator. While the EAAB’s quality and trust issues are being addressed, there is concern over the road ahead for the real estate industry.

There is, however, another accreditation that poses a significant benefit to consumers and prospective real estate franchisees and this is where the Franchise Association of South Africa (FASA) divides the playing field. FASA is a non-industry specific association that has been the watchdog of ethical franchising in South Africa for the past 34 years. Accreditation to this voluntary organisation, known to attract franchisor members who choose to run their businesses in adherence to acceptable international standards of practice, offers peace-of-mind to prospective franchisees as well as consumers who choose to do business with franchised real estate agencies, as it does with other franchised businesses.

When dealing with an accredited member of FASA, consumers and prospective franchisees are assured that the franchisor complies with good business practices, FASA’s code of ethics and the provisions of the Consumer Protection Act (CPA).

In terms of the CPA and the FASA code, FASA members are obliged to provide certain minimum information and reasonable value to its franchisees. In addition, the FASA accredited franchisor’s franchise agreement and disclosure document complies with the minimum requirements and transparency as required in terms of the CPA.

FASA assists franchisees, and indirectly also general consumers, by insisting that franchisors submit an updated disclosure document every year. FASA offers free alternative dispute resolution procedures to member franchisors and franchisees, whilst it also has a formal disciplinary committee. In the event of severe transgressions, the offending franchisor’s membership will not be renewed, leaving such a franchisor without the FASA stamp of approval.

Regardless of the industry a prospective franchisee is considering, it is always advisable to look for the FASA logo as a relevant and significant symbol of approval.

Through its “Recognition of Prior Learning” process the real estate industry now offers excellent long term career opportunities, an extra-ordinary income potential and a flexible lifestyle to people from all walks of life. At RealNet Properties we are extremely proud to be one of only four FASA accredited real estate agency groups in South Africa.

As the administrators of the EAAB are busy getting the Regulator back into a fighting fit condition, we anticipate that the barriers to entry into the franchised real estate industry will continue to rise.

RealNet Properties
www.realnet.co.za
jan@realnet.co.za
+27 12 348 9511