Bendeta Gordon There are many ways to skin a cat, they say. For SMMEs this definitely does not hold true when they need capital to grow. Though many SMME owners are willing to grow and create jobs, they aren’t spoilt for choice where the financing of growth is concerned. But all is not lost according to Bendeta Gordon, chartered accountant [CA(SA)] and founder of Franchize Directions . “There is a way to finance growth which SMMEs have under-utilised but which is proving to be a viable way for them to increase market share at low risk levels. We have been researching and tracking franchising for more than 20 years and, over the period, franchising has consistently proven itself to be a great business expansion mechanism that reduces the business risks associated with growth and which also stimulates the economy and creates jobs”. Franchisee, franchisor…what is the difference? Franchising is a way in which a company wishing to expand its reach, issues a licence to another party...

While the franchise agreement is an essential component of the franchisor/franchisee partnership, legal agreements do not guarantee mutually productive relationships. Co-operation, motivation and teamwork are the real building blocks of success in a franchise chain. Contributed by Franchize Directions To say that franchising is just a legal or commercial relationship between two parties is to provide only part of the story. To complete the picture we need to consider the quality of communication between the parties and said quality is largely dependent on the quality of relationships between the parties. Given the long term nature of the franchise relationship and the interdependence of the parties, the franchisor/franchisee relationship is often likened to a marriage and, as in every marriage, relationships can sometimes become strained. Where a franchise network has developed a system of good internal communications, pressures on one party, rather than becoming a cause for co...

So you have started on your Operations Manual, but who is going to use it? By Lindy Barbour Recruiting and selecting the right franchise partners is critical to the success of any franchise operation. Perhaps the greatest mistake a brand custodian can make in the implementation of their expansion strategy, is selecting inappropriate owner-operators. While we discussed the Operations Manual in detail in the previous issue, it must be noted that the format of the Operations Manual is heavily dependent on the profile of your operators. If you are leaning more towards a product trade name franchise you will require a more sophisticated operator as your Operations Manual will be less detailed. If your franchise system is better categorized as a business format franchise you must weigh up the depth of the materials provided with the skills and experience of the people you choose. By now you should be clear on the type of business to be franchised and similarly you should...

What you need to know about compiling an effective Operations Manual before embarking on your franchise expansion plan. By Lindy Barbour In our previous article we discussed the importance of a proven pilot and the franchise package elements as the key ingredients in the franchise expansion plan. In fact, the franchise package elements are critical to the franchisor’s ability to establish and maintain a successful and prosperous relationship with his franchisees. The franchise package should include the following: • An Operations Manual; • Legal Agreements – The Franchise Agreement; • The Disclosure Document; and • The Franchise Prospectus and Recruitment and Selection Programme. Over the next several issues we will be addressing the elements of the franchise package individually and we start off by taking a look at the Operations Manual. As franchise consultants we are often contacted by prospective franchisors labouring under the impression that they only require a ...