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Franchise industry continues to drive value through mergers and acquisitions

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Dumisani Bengu, Head of Franchising at Absa Mergers and acquisitions (M&A) have become an important driver of value in the South African franchise industry sector, which continues to grow in both volume and value for investors in this low risk high return sector of the economy. This is despite the recent trend of slow growth in the South African economy. Our own data shows strong year-on-year growth in the franchise assets book between 2016 and 2017, which ran in excess of 20% and was primarily driven by M&A in the multiple store franchise groups. Most of this M&A activity was experienced in retail, restaurant and fast foods, and fuel franchise sub-sectors of the South African franchise landscape. M&A generally refer to the transactions in which the ownership of companies, business organisations, operating units or assets are transferred or combined. In a merger, two organisations join forces to become one new business, usually with a new name whereas in an acqu...

Franchising sector takes the lead in driving economic growth

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Sector to come under the spotlight at the 2018 FASA Franchise Convention With the economy showing a positive growth for the coming year and public and business sentiment more positive, the Franchise Association of South Africa (FASA) is poised to spearhead initiatives and events that will nurture entrepreneurship, encourage small business development, add to skills growth and ultimately add much needed jobs to the economy. The franchise sector has continued its growth trajectory despite the tough economic conditions of the past eight years, adding around 88 new franchise systems and 2 789 new outlets in 2017 – proving that franchising remains one of the soundest business formats, structured to withstand economic challenges. With a contribution of 13,3% to the country’s GDP through its 845 franchise systems, over 40 000 franchise outlets are giving direct employment to close to 400 000 people. According to Vera Valasis, Executive Director of FASA, “the continued growth of new fr...

20 Years of dedicated service as team member Tiny Mamabolo retires

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Tiny Mamabolo (3rd from left) with Ken, Ian, and Warwick Corder. 2018 is a year of milestones for Minuteman Press in Strijdom Park, South Africa. Not only is the business celebrating its 21st anniversary but Tiny Mamabolo, who joined the business shortly after it opened its doors, has retired after 20 years of loyal and dedicated service. Tiny, with a wealth of experience having been in the printing industry for over a decade, joined Minuteman Press Strijdom Park in February 1998 to take charge of the finishing and bindery department. Along with her production responsibilities, Tiny took care of just about everything else in the shop. Loyal customers will remember Tiny’s friendly voice at the end of the phone as she was invariably the first to pick up. Whilst keeping an eye on the finishing and bindery operation, Tiny has for the past several years operated the guillotine, her care and precision ensuring that wastage has been kept to an absolute minimum. Tiny with Li...

Important Strategic Partnerships for The Tax Shop

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Regardless of the industry in which any business operates, having an ally in the form of a strategic partner will benefit a business.  Strategic partnerships provide competitive advantage and opportunities to access a broader range of resources and expertise.  Such partnerships can often provide distinctive skill sets and product lines that are different from the competition.  Such distinctions are of even greater significance in a franchised operation where the benefits from strategic alliances can be leveraged across the entire franchise group.  The main objective of such alliances is the true synergy of one plus one equals five instead of two. We have always regarded our strategic partnerships with great importance and are proud to have formalised partnerships with top professional organisations and software providers, allowing us to offer unique and customised services to our clients.  We currently have alliances with the following: Prominent accountin...

Sanondaf: a work from home franchise opportunity

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If you are looking for a simple business opportunity or to include Sanondaf System in your existing Cleaning or pest Control services with a low risk and a high profit margin then SANONDAF franchise opportunities tick every box. Sanondaf offer franchisees a proven and tested concept, fully protected intellectual property and a system that has generated continuous positive results and a consistent return on investment. The latest generation of Sanondaf touchless disinfection solutions combine the effect of both their spraying devices and disinfectants solutions, allowing for the air and surface areas in a room to be disinfected automatically. Sanondaf’s patented disinfectant is a highly effective oxidizing disinfectant that kills 99.99% of all hazardous germs and bacteria without posing any threat to humans, animals or plants. Sanofog – Sandondaf’s fogging device was developed around a heating and ionizing turbine that transforms the disinfectant liquid into a dry fog. Sanostatic ...