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FASA Franchise Award Winners Succeed Against The Odds

The Franchise Association of South Africa’s Franchise Awards for Excellence in Franchising, sponsored by Sanlam and held this past week-end as part of their annual Franchise Business Festival, honoured those franchise brands that have bucked the negative trends to show resilience and growth in these trying times.

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The Franchise Association of South Africa’s Franchise Awards for Excellence in Franchising, sponsored by Sanlam and held this past week-end as part of their annual Franchise Business Festival, honoured those franchise brands that have bucked the negative trends to show resilience and growth in these trying times.

Commenting on the finalists and winners in the categories, Franchisor of the Year, Franchisee of the Year, Newcomer Franchisor of the Year, Franchisor: Leading Developer of Emerging Entrepreneur, Job Creator of the Year, Brand Builder of the year and Field Service Consultant of the Year –  Tony Da Fonseca, FASA’s Chairman for 2017/8 and MD of the OBC Group, believes that the industry’s saving grace is the fact that, by its very nature, franchising is entrepreneurial, flexible and forward-thinking. 

“Despite the on-going recession that is impacting heavily on small businesses, the franchise sector continues to be resilient and offers its franchisees a better chance of surviving the ups and downs – largely due to the strong business format and support system inherent in franchising.”

Related: Should You Purchase An Existing Franchise?

Franchising has proved, time and again to be a much lower risk investment than starting a new business, with FASA’s survey, sponsored by Sanlam, showing that whereas 93% of new small businesses fail within two years of start-up, only between 5 and 7% of franchised businesses fail.

The business model of franchising is globally one of the soundest business methods and in South Africa has grown to 757 franchise systems with a network of 31 111 franchisees, employing close to 400 000 people and contributing 11.6% to South Africa’s GDP.

Following on from sponsoring the FASA Surveys, Sanlam decided to sponsor the FASA Awards to give recognition to business owners for their efforts to grow the economy and for providing much needed jobs. Says Kobus Engelbrecht, Marketing Head, Sanlam Business Market.

“We recognise that business ownership is a very lonely road to travel and recognition very rare and as the franchising industry is very important to the South African economy and therefore to us, we are very proud to sponsor the 2017 FASA Franchise Awards”.

FASA’s Franchisee satisfaction survey also shows a high level of franchisee satisfaction (82%), an extraordinary high level of longevity in business with nearly one in two (44%) in business for more than ten years, and 62% in business for more than five years. The overall sentiment amongst franchisees surveyed is that they  would highly recommend franchising to others because of the reputation and quality of the franchise brands, the strong support they receive and, as one franchisee put it ‘I would rather be in business within a franchise system than be facing all these challenges on my own.”

The FASA Awards, according to Vera Valasis, the Franchise Association’s Executive Director are the industry’s way of acknowledging the franchisors and franchisees that are still climbing the ladder of franchise success and who aspire to reach the heights of the icons in the industry and who serve as examples to those that are still growing their brands.

“This year’s franchise entrants reflect the pockets of excellence that we find in a range of business categories – even in tough economic times”, says Vera Valasis. 

“There are always businesses that do well in tough times or are able to find a ‘niche’ that sets them apart and those who, by default, thrive on the back of challenging conditions.”

Related: Owning A Franchise – Good Idea Or Bad Idea?

This year’s FASA Franchise Awards reflect how brands can, and do rise above the challenges to be successful, as the winners in this year’s award have shown.

  • Winner of the prestigious FRANCHISOR OF THE YEAR award, Car Service City is proof that the automotive services industry has benefited from motorists repairing rather than replacing cars. The growth of their brand is reflected in their good reputation and their accountability to their customers, franchisees and employees. Runners up were Kauai and Sorbet.
  • FRANCHISEE OF THE YEAR  winner, Madelein Van Staden of Placecol Skin Care Clinic in Pretoria, believes in the classic ‘lipstick effect theory’ that, in economically challenging times, consumers (and in this case women) may tighten their belts in some areas but will still spend on beauty treatments and products to boost their morale and stay positive. Runners up were Jaco Uys of Roman’s Pizza, Groblersdal and Kalai Moodley of Perfect 10, Ballito.
  • NEWCOMER FRANCHISOR OF THE YEAR winner Body20 is testament to the growth in the Health & Body culture sector in franchising, which, according to FASA’s recent franchise survey, makes up 5% of the franchise pie. Body20 helps time-strapped people get the equivalent of 5 conventional weight-training sessions in just 20 minutes with their innovative EMS fitness system. Runners up were Sherpa Kids and Rocomamas.
  • In line with FASA’s commitment to encouraging growth in BEE franchisors and franchisees, the FRANCHISOR: LEADEING DEVELOPER OF EMERGING ENTREPRENEURS award went to Hot Dog Cafe, a pioneer in developing government funding programmes that nurture entrepreneurial ownership, skills transfer and job creation. Runners up were Choprop and Sherpa Kids.
  • Winning the JOB CREATOR OF THE YEAR award is Sorbet, the beauty salon group that employs 2 400 people in their 177 outlets – many of whom are trained through the Sorbet Empowerment Foundation, an upliftment programme committed to building skills and job creation. Runners up were  Car Service City and Hot Dog Cafe.
  • Marketing, in today’s difficult trading environment and with fast-moving social-media trends, requires lateral thinking and health food brand Kauai, winner of the BRAND BUILDER OF THE YEAR award, hit the target with stores in 93 Virgin Active Health Clubs and partnering with Discovery Vitality and Discovery Insure through rewards programmes, apps and newsletters. Runners up were Perfect 10 and Placecol.
  • Central to the success of any franchise is the control and servicing of the many franchisees that make up the franchise.  FASA recognises the role that field service consultants play in mentoring and monitoring the operations of franchisees and has an award for the best FIELD SERVICE CONSULTANT. Nanou N’sa of Hot Dog Cafe wins this award and a trip to the USA’s International Franchise Association’s Convention and Exhibition in 2018. Runners up were Navin Sawnarain of John Dory’s and Eric McDermott of Rocomamas.

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Be 1 Of 3 High Growth Scale Ups Sponsored By FNB & Vumela To Participate For FREE In 10X Accelerator Program (Value Of R650 000)

FNB and Vumela are sponsoring 3 high growth Scale Ups on the 10X Accelerator Program, kicking off in February 2018.

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The 10X Program has received amazing reviews and huge interest, because of its unique approach:

  • Focused on businesses that are Scaling Up (past the start-up / typical Accelerator phase)
  • Business Scale Up focus, not capital raising / exit focused
  • Broad company-building focus, not a narrow technology commercialisation focus
  • Addressing the gnarly and complex issues that come with growth, like hiring, firing, performance managing, management systems, Boards, etc
  • 18 months of intensive, hands on support
  • Working with seasoned Scale Up leaders

Here’s what delegates are saying:

“We’ve grown really fast, but without the 10X Program we probably wouldn’t exist anymore because things were starting to break… It’s a game changer… Unlike most other workshops like this I have experienced, 10X-e combines theoretical concepts with real world applications so that I can make immediate changes to my business. The tools are easy to execute throughout my organisation and get the needed buy in from my management team. We now have every staff member fully aligned to the company’s strategy… we’re now scaling much faster and with less resources than we would have normally required without the 10x process…. – James Wilkinson, Founder, Sonic Telecoms

Related: Expansion Funding Options For Your Growing Business

“Within 1 month I doubled sales revenue, because it became so clear I had 2 people in the wrong roles. We swapped their roles and doubled revenue immediately.” – Richard Rayne, Founder, iLearn 

“I used to feel like I was sprinting up a sand-dune. If I stopped sprinting for a moment, the business would slide downhill. But since the program, we have much more momentum and its not all up to me because the entire team is pulling together in the same direction. Things won’t grind to a halt if I am away for 2 weeks” – Andrew Cook, Founder, Smoke Customer Intelligence

‘The [10X Strategy Workshop] process gave us the framework to focus and say no to distractions … [key] part of our journey to drive relentless focus. The Workshop catalysed us working on our business and not just in it… [and] supported a period of advancement… and scale’. – Brad McGrath, co-Founder, Zoona

‘The upfront Path To Scale Boot Camp… got us all thinking the same way and on the same page about how to Scale. It is something we have carried with us and that has guided us ever since.’. – Aisha Pandor, co-Founder, SweepSouth

The Program is worth R650k. FNB & Vumela are sponsoring 3 qualifying Companies.  Seats will be awarded to businesses with the greatest Scale Up potential.

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R33 Million Boost For Job Creation And Innovation In SA

The Craft + Design Institute (CDI) has launched R33 Million in funding to boost SME growth, job creation and innovation.

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The CDI has raised the R33m to establish three funds – a Growth Fund, an Innovation Fund and a Loan Book – these funds will be managed by its investment arm, CDI Capital.

The funding will be for developing 60 growth oriented SME’s and 20 innovative technological solutions – and to create 600 permanent jobs in the process over three years.

This funding has been enabled by the National Treasury’s Jobs Fund through the Government Technical Advisory Centre (GTAC), the Technology Innovation Agency (TIA), and the Western Cape Department of Economic Development and Tourism (DEDAT).

CDI Capital was specifically incorporated as a CDI subsidiary in 2016 to catalyse funding for SMEs. A level 1 B-BBEE company, it aims to combine government grants with corporate Enterprise Development spend and private funds to de-risk investments in SME’s to stimulate growth and returns.

Related: 3 Things You Must Have In Place To Get That Start-up Bank Finance

The Growth Fund is open to businesses with turnover or assets of more than R1m with the ability to create permanent jobs. Applications open on the 27th of November and close on the 31st of December 2017. For specific criteria and more information on the grant please visit www.cdicapital.co.za/GrowthFund

The Design Innovation Seed Fund (DISF) is open to inventors who believe they have protectable innovative technological solutions that could impact on specific sectors and could create permanent jobs. This is the third round of this fund. Applications open on the 27th of November and close on the 31st of December 2017. For specific criteria and more information on the grant please visit www.cdicapital.co.za/DISF

In addition to the grant funding products, CDI Capital will also launch a R3.5m working capital and term loan facility at reduced rates for the duration of the three-year project to provide access to cash flow during the growth stage of these, and other qualifying SME’s.

 

The CDI has 16 years of experience in SME development and started supporting development in the craft and design sectors nationally in 2015. Signaling this change, the organisation changed its name in September from the Cape Craft + Design Institute to The Craft + Design Institute.

According to Erica Elk, Executive Director of the CDI, it was a landmark moment in the organisation’s history.

“Over the past few years our team has successfully taken our services across the country – we have conducted a business and product development workshop series in every single province and received incredibly positive feedback. The message clearly is ‘more please’.”

Elk said that there is a consensus in South Africa today that SMEs hold the solution to our intractable problems of a sluggish economy and high unemployment rates.

“In most countries, SMEs play a vital role as drivers of economic growth, innovation and job creation, but, in South Africa, this value is yet to be properly realised. To achieve this, the challenges experienced by SMEs need to be addressed. Namely access to markets, finance and credit, infrastructure, resources for R&D, and access to adequately skilled and work ready labour.”

She added that the CDI, through its specialised investment arm CDI Capital, is gearing up to provide solutions to some of these challenges, particularly in the craft and design sector and related sectors where design and innovation can catalyse growth.

“Our first Jobs Fund project, completed successfully in December 2015, had 45 participating companies creating 464 jobs off an investment of R14.5m. This was 105% of the target of jobs to be created. Participating SMEs grew their combined annual revenue by 73% over three years – from R60m to R104m. Funds were used to improve their products, processes and competitiveness through the acquisition of new machinery or specialist staff, and to expand local and international market reach.”

“We also completed a first round of DISF grants in 2016, and are currently working with seven innovative SMEs in round two – round one attracted private funding of over R10m in equity funding into some of the high-potential innovators. The DISF gives innovators and entrepreneurs in the Western Cape an opportunity to get the finance and support needed to get their ideas to the next stages.”

“We have put a significant amount of work into developing these offerings, not only ensuring good governance and appropriate monitoring and evaluation measures, but realising real and sustainable impact with the businesses we support. We are excited to have raised R33m to launch this new funding for SMEs, and we thank our funders and supporters – we look forward to making meaningful investments.”

Related: 6 Great Tips For A Successful Shark Tank Pitch

“Now – having led the way with investment from the public sector – we would like to partner with the private sector to support and strengthen this initiative. We believe this project – which aims to catalyse innovation, support growth orientated SME’s and create 600 jobs – would be an ideal Enterprise Development spend opportunity. CDI would gladly partner with corporate growth orientated accelerators and mentorship programmes to further strengthen the support offered to the participating SMEs.”

 

Najwah Allie-Edries, Deputy Director General: Employment Facilitation within the Jobs Fund:

“The Jobs Fund supports this initiative in recognition of the critical role that SMEs play in creating a more inclusive economy and job creation and also because it will contribute toward CDI becoming a more self-sustaining entity. The aim of this initiative is to provide appropriate financing options to SMEs in the craft and design sector in order to catalyse sustainable growth which will result in attracting further investment into a sector that has often been neglected. The introduction of a revolving loan facility will not only ensure that over time more SMEs can benefit from access to finance, the enhanced revenue streams will also contribute to the CDI’s goal of becoming a sustainable entity in its own right.”

Mr Vusi Skosana, Head: Technology Stations & IATs (TSP) at TIA, said that the Technology Innovation Agency (TIA), an agency of the Department of Science and Technology, was established with an objective to support the State in stimulating and intensifying technological innovation in order to improve economic growth and the quality of life of all South Africans by developing and exploiting technological innovations.

Solly Fourie, Head of Department, Department of Economic Development and Tourism, Western Cape Government:

“We know that there is a strong need to develop and improve the socio-economic conditions of the citizens in our region. To this end, the creation of a healthy and vibrant regional innovation system can be a catalytic driver of sustainable economic growth and development. But neither DEDAT, nor the WCG, are able to tackle this alone. The partnerships created through the Seed Fund and Jobs Fund; and initiatives like it, go a long way to creating an enabling regional innovation system in which we collectively draw on the Quad helix’s expertise and resources; promote local industry and attract and grow innovative businesses. By doing this, we are crafting the best possible conditions for businesses to develop in this region.”

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Start-ups Require A Strong Legal Foundation Webber Wentzel Ignite

Entrepreneurs, start-ups and scale-ups are a lifeline to South Africa’s economy.

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Entrepreneurs, start-ups and scale-ups are a lifeline to South Africa’s economy.  It is however a harsh environment and many entrepreneurs find themselves in a situation where they are wearing many hats and navigating potential pitfalls without the knowledge that many professionals have from years of experience.

This is especially true from a legal point of view where entrepreneurs are faced with real world regulatory challenges that could have far-reaching consequences on their fledgling business, such as financial regulatory, tax, exchange control and intellectual property.

A common example is that start-ups often forget to secure the rights and licenses they need to operate. For example, would you invest or partner with a company that:

  • doesn’t have a legal right to use their brand
  • doesn’t have proprietary technology; and/or
  • is reliant on a third party agreement that doesn’t permit commercial use?

Related: How To Raise Working Capital Finance

These avoidable shortcomings often result in failures at critical junctures. The specialist legal services needed to avoid these problems are typically not easily accessible to start-ups.

With this in mind, Webber Wentzel has launched a project called ‘Webber Wentzel Ignite’ – a legal incubation programme that will provide selected entrepreneurs and innovators from any sector with:

  • tailored legal services valued at up to ZAR 100,000;
  • bespoke mentoring and training support – focused on legal knowledge and developing key legal skills relevant to start-up businesses; and
  • targeted networking and profile-raising opportunities.

Video about Ignite

Webber Wentzel is not asking for equity or exclusivity; only an opportunity to connect and make a difference as a trusted advisor over the long-term. It is a wonderful opportunity that will set the selected entrepreneurs apart in the marketplace. Applications close on 15 January 2018

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