Franchising offers numerous benefits for both franchisor and franchisee and is one of South Africa’s most popular types of business structures. However, if incorrectly approached, franchises can create financial loss and setbacks for both parties.
We understand the importance of creating and adequately protecting the franchisor’s valuable franchise system, and we also understand the regulatory framework created in terms of the Consumer Protection Act (CPA) in which the franchise network needs to operate.
The franchise agreement is the cornerstone of any franchise system. It should adequately address all aspects of the franchise relationship, while protecting the franchise system and enabling the franchisee to use the franchise system for its commercial gain. We assist franchisors in preparing their franchise agreement in a manner which enables their franchise system to operate effectively, while ensuring that the franchise system and the franchisor’s rights are adequately protected, in full compliance with the CPA.
In addition to having a CPA compliant franchise agreement, the franchisor must ensure that it has a comprehensive disclosure document, as well as a detailed operations’ manual. We assist franchisors with the preparing of their disclosure document, which is in full compliance with the CPA and which sets out all the required information which promotes the franchise system and enables a prospective franchise to make an informed decision whether to invest into the franchise network.
We also assist franchisees, whether they be master franchisees, area developers or ordinary franchisees, with the protection of their rights in terms of the above agreements.
KISCH IP is a full member of the Franchising Association of South Africa (FASA) and we subscribe to FASA’s Code of Ethics and Business Practices.
We assist our clients with:
- Preparing franchise agreements and disclosure documents
- Reviewing of franchise agreements and disclosure documents and with general advice on investing into a franchised business
- Providing ongoing advice on all matters relating to franchising
- Formulating a business plan and presentation as well as setting up a private company
- Franchise related dispute resolution