Franchising… safety net behind economy
Theo Garrun
15 April 2009 at 06h00
The Franchise Association of South Africa presented its annual awards for excellence in franchising at the International Franchise Expo and Franchise Convention in Sandton last week.
Franchising has become one of the most important business sectors contributing 12,57 percent to GDP in 2008, with close to 30 000 franchised outlets in over 17 business sectors employing over half a million people.
"Despite the economic downturn franchising continues to be a dominant business format as far as SME development is concerned," said Fasa chairman Tumi Sengoara at the awards function.
"Across the globe small business is recognised as the safety net of any economy and franchising is proving to be quite resilient even in this economic climate."
Franchisor of the Year for 2009, Fasa's most prestigious award, went to Pick n Pay whose franchise division has been a proud example of how franchising can be both ethical and profitable.
The success story of Pick n Pay is legendary, especially the equitable way in which they have managed to operate a successful corporate business and grow a strong and profitable franchise division.
A successful Franchise Academy trains, develops and empowers previously disadvantaged people with the objective of developing franchisees.
Pick n Pay leads the field in entrepreneurial empowerment with its family stores targeted at growing black entrepreneurs.
The runners-up in the Franchisor of the Year category were: NWJ Quality Jewellers, Postnet and Maxi's Restaurant.
The Franchisee of the Year is Captain Dorego's, Bloemfontein.
Johnny da Silva and Carlos Nunes have successfully developed eight outlets in the Bloemfontein area, serving around 102 000 people a month.
According to Da Silva, adhering to the franchise methods of operation is crucial to success.
"Adding value through training is also important. We realise that our staff are crucial to the business and therefore equip them with the skills necessary to not only add value to the brand, but for their own personal growth. After all, if a person feels successful, they will have the confidence to excel in life," he says.
The runners-up in the Franchisee of the Year category were:
Western and Northern Cape - Captain Dorego's, Kimberley; Eastern and Southern Cape - Vodacare, George; Gauteng Woolworths, Summit Road, Bryanston.
The award for the franchisor who does most to develop emerging entrepreneurs went to Captain Dorego's, which, with its 36 new-look stores situated in high-traffic areas, is fast becoming the fast-food of choice for the thousands of mostly black customers.
As the black community strongly associates with the brand, it is attracting emerging entrepreneurs as franchisees who are well known and respected in their communities.
The runners-up in this category were: Hot Dog Cafe and Butterfield.
The Newcomer Franchisee of the Year is Placécol.
Placécol is unique in that it offers potential franchisees a beauty centre franchise in the very lucrative health and beauty market segment.
The Brand Builder of the Year is Vodacom 4U.
The runners-up in this category were Postnet and Maxi's.