SA Franchise Warehouse

FASA appoints its first franchisee as chairman

John Baladakis

For the first time in its 36-year history, the Franchise Association of South Africa (FASA) has appointed one of its franchisee members as Chairman for 2015. John Baladakis is a Pick n Pay Franchisee. 

His appointment comes at a time when the country needs to grow its economic base on every front, particularly in the small business sector. FASA was established as the franchising sector in South Africa was finding its feet. Today the GDP contribution of the franchising industry is estimated at almost 10%, with an excess of 620 franchised systems operating and over 31 000 franchised businesses countrywide who, in turn employ about 323 500 people in the sector.

In his address at the FASA AGM, John Baladakis said he intended to build on the work done by the association over the 36 years of its existence.  “As a franchisee that benefited from the opportunities that franchising afforded me in the field of entrepreneurship and job creation, I look forward to bringing a different perspective to FASA and being the voice of not only those entrepreneurs who start new concepts but to the over 30 000 franchisees who play such an important role in franchising and who contribute to our economy.”
Says John Baladakis of the need to see franchising grow even further; ‘When one considers that franchising internationally, in countries like the USA, Canada, Australia etc.,  is involved in up to 75 business sectors - then South Africa, where franchising is found in only 17 business sectors - has barely scratched the surface. On the other hand, consider franchising’s contribution to South Africa’s GDP; it surpasses that of mining & quarrying (4.9%), and agriculture, foresting & fishing at 4.9% - therefore the influence of franchising on the South African economy can’t be underestimated. 

South Africa can be proud to hold the torch for franchising not only in South Africa but for Africa as a whole. FASA, as the oldest internationally recognised franchise association on the continent, has been responsible for the roll-out of ethical franchising in South Africa since 1979. Political isolation in the 80’s encouraged home-grown concepts – the result is a buoyant local franchise industry  – many of whom have successfully been “exported” abroad. 

In his role as Chairman of FASA, John hopes to be a beacon for entrepreneurship, franchising and small business development which needs to be nurtured and grown to become a driving force in our future economy. Says Baladakis, “The establishment of a Small Business Ministry is a welcome government initiative but, with the high failure rate of independent businesses (around 90% in the first few years), we know the Ministry is looking at successful franchise models as a sound way to get the masses involved in business.  “Easing the red tape around setting up and running a small business and giving incentives to entrepreneurs to start new concepts that will ensure skills transfer and job creation will go a long way to ensuring that the small business sector thrives.”

FASA‘s projects for the year include some ground-breaking initiatives, amongst them:

• FASA has applied to the Minister of the DTI to have its code accredited under Part B, Section 82 of the Consumer Protection Act 68 of 2008 as an accredited industry ombud. The Association has therefore also moved to establish the Franchise Industry Ombud as a company not for gain.
• Accreditation of FASA as a professional body through SAQA;
• An allocation from the Jobs Fund initiative for the promotion of business development and job creation;
• Investigating the viability of introducing Social Franchising as a viable option for the African economy – where the not-for-profit public/private partnership can solve some of the country’s service delivery challenges whilst assisting in skills transfer, entrepreneurship and job creation.
• Establishing the Pan African Franchise Federation in 2013 with the aim of furthering the cause of franchising on the African continent and assist countries to establish franchise associations in their own respective industries/countries.
• Conducting annual surveys of the franchise sector;
• Promoting franchising through its many events such as the International Franchise & Entrepreneurial Expo (IFE) which takes place from the 16 – 18 April 2015, their annual Franchise Convention (15th April 2015), FASA’s Awards for Excellence in Franchising, monthly networking breakfasts and the publication of its Franchise & Supplier manuals.

BACKGROUND TO JOHN BALADAKIS
John’s fascination with his father’s decision to leave the comfort of his professional corporate career for the tough world of ‘Corner Shop Supermarkets’ impressed on him an entrepreneurial culture. Once he had graduated with a bachelor’s degree, his longing to be the one determining his destiny created a ‘franchisee’ of him in his early twenties. As the son of Greek immigrants who made good against all the odds, John Baladakis remembers the exact moment that the penny dropped that he wanted to be an entrepreneur.  At his first job interview where he was told that if he performed well and if the company could afford it, he might get a small increase at the end of his first year; the words of his father came flooding back. ‘My boy - always be in a position to write your own salary cheque’.  Having seen his parents, like many other immigrants, arrive in South Africa without a penny, not speaking the language but through sheer hard work and determination succeed as small business operators, he understood the power of the small business revolution.