FNB Franchise & Leadership Summit: How does franchising work and how to choose a franchise
Presenters: Anita Du Toit and Eric Parker, Franchise Consultants: Franchising Plus CC
Anita Du Toit is involved with franchising since 1998. Her experience includes work in the telecommunications, automotive and retail industries. She obtained a Master’s Degree in Marketing (cum laude) from the University of Pretoria in 2000 and had several papers published in academic journals including the Journal of Marketing Channels and Franchising Law and Policy Review. She is a partner in Franchising Plus.
Eric Parker has extensive experience in entrepreneurship and franchising. He is a past chairman of the Franchise Association of South Africa which, under his stewardship, reached new heights, and served on its Board of Directors for many years. He is widely recognised as a strategic thinker and is the author or co-author of several books on entrepreneurships which included two bestsellers in their genre. Eric is the senior partner in Franchising Plus CC.
Being an employee is for sissies
Eric started off by making the point that while our educational system continues to prepare us for employment by government or a large company, this does not take into account that the world has changed. Being an employee is not only limiting in terms of self-expression and earnings power, it also lacks true security. With companies forever rationalising or merging, job security no longer exists. However, entrepreneurship is a hard taskmaster and not everyone is cut out for it. However, sound franchise opportunities offer the best of both worlds.
- The franchisor provides a trademark, a proven system, initial and ongoing training and assistance.
- The franchisee is in business for himself but not by himself. As long as she represents the brand with pride and follows the system, the business should be successful.
- Franchisees of solid concepts will typically earn 2.5 times more than an employee and at the end of their working lives, they can sell their businesses and collect a substantial capital profit.
An in-depth self-examination followed by careful selection of the franchised brand are essential success factors for becoming a happy franchisee.
How franchising works