A proposed theoretical model for successful implementation of franchising in the South African chicken-based fast food industry
- Authors: Ekosse, Emmanuel Georges Ivo Ekosse
- Date: 2017
- Subjects: Franchises (Retail trade) -- South Africa , Fast food restaurants -- South Africa -- Management Chain restaurants -- South Africa -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/15567 , vital:28270
- Description: The purpose of this case study research effort was to develop and propose a theoretical model for the successful implementation of franchising in the South African chicken-based fast food industry. Design/Methodology/Approach - A single case with embedded units of a franchisor and a franchisee was initially adopted, but inaccessibility to respondents resulted in the adaptation of the study into a single holistic case. This is justified as the case serves a revelatory and explanatory purpose (Yin, 1994, p. 44). The case provided insight into the implementation processes of franchising in the South African chicken-based fast food industry; where franchised chicken-based concepts are leading the industry. The inaccessibility to original target respondents considered a limitation in the original research design. The limited contextual knowledge of the transcriber, and inexperience resulted in a sub-par transcript which slightly limited the interpretation of the data. Originality/Value – The case study examines the current implementation of franchising in the South African chicken-based fast food industry; with particular focus on the chicken-based fast food franchise systems which have consistently outperformed other types of fast food franchise systems. The proposed theoretical model can be applied in any industry or geographical location with an adjustment of the model‟s contextual considerations.
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- Date Issued: 2017
An evaluation of the impact of the Consumer Protection Act 68 of 2008 on the relationship between franchisors and franchisees
- Authors: Biggs, Lynn
- Date: 2017
- Subjects: South Africa -- Consumer Protection Act, 2008 Consumer protection -- Law and legislation -- South Africa , Franchises (Retail trade) -- South Africa
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10948/14642 , vital:27810
- Description: The franchising business model is an attractive option for both franchisors and franchisees. Franchisors grant the rights to use their intellectual property and business system to franchisees for a fee. Franchisees buy into the tried-and-tested business system, receive ongoing training and support and operate under an established trade mark or trade name. Fundamental characteristics of the franchise relationship include: the contractual nature thereof, the use of the franchisor‘s intellectual property by the franchisee, operating the franchise outlet according to the franchisor‘s business system, providing training and support to the franchisee, and paying for the use of the franchisor‘s intellectual property and business system. These characteristics have resulted in inherent tensions between franchisors and franchisees, which arise by virtue of, inter alia, the control exercised by the franchisor over the use of its intellectual property, franchisor opportunism, poor franchisee selection, franchisee free-riding, inadequate training and support, or the sunk investments made by the franchisee. The franchisor and franchisee generally use a franchise agreement to regulate their relationship. However, the franchise agreement itself can also lead to conflict between the parties, such as that arising from poor drafted clauses relating to territorial rights, renewal, payment, termination, restraint of trade, or confidentiality. The franchise agreement is typically drafted in the standard-form, resulting in franchisees faced with unequal bargaining power. The common law of contract is based on principles of freedom of contract and sanctity of contract and is, therefore, limited in its ability to resolve the tensions between the parties. Various models for regulating the franchising industry can be adopted, for example, self-regulation, statutory regulation, or co-regulation. Australia and Canada have adopted the statutory model by enacting franchise-specific legislation and New Zealand has followed the self-regulation model with no legislation regulating its franchising industry. South Africa did not formally regulate the franchise relationship through legislation until the enactment of its consumer protection legislation, the Consumer Protection Act 68 of 2008 (CPA), which includes a franchisee within the definition of consumer. This entails that all franchisees enjoy the protection of the CPA and all franchise agreements must comply with the provisions of the CPA. The South African economy is unique in that it is burdened by the social ills of its discriminatory past, such as high levels of unemployment, illiteracy and inequality. The country is faced with a slow growing economy with little development and promotion of entrepreneurship among small businesses. Despite the burdensome economy within which the franchising industry is required to operate, the industry‘s contribution to the Gross Domestic Product (GDP) of the country has remained stable. The South African government has identified the franchising industry as an opportunity for job creation, economic empowerment and promotion of entrepreneurship. The aim of the study is to ascertain whether the CPA is the correct legislative vehicle to regulate the franchise relationship, while enhancing the growth and development of the franchising industry. This thesis concludes that the introduction of fundamental consumer rights and rights of redress for franchisees through the provisions of the CPA has contributed to, or assisted in, the removal of the tensions inherent in the franchise relationship. In particular, the CPA has adequately addressed the lack of formal regulation of the franchise relationship through its disclosure requirements and its regulations. The thesis also proposes amendments to some of the CPA regulations, which will further enhance the disclosure requirements, and aid in curtailing the conflict caused by the terms of the franchise agreement. The thesis further proposes that the application of the CPA to franchise agreements should be limited to small, inexperienced or unsophisticated franchisees that are in need of the protection. An essential premise is that the CPA aims to protect ordinary consumers, including juristic persons, in day-to-day transactions (up to the threshold amount), to avoid suppliers taking advantage of them. Larger, more sophisticated or experienced franchisees, with stronger bargaining power and access to legal advice, do not necessarily require the protection of the CPA. The criteria relating to the size of class of micro-, very small and small enterprises, but not medium enterprises, within the different sectors or sub-sectors in terms of the National Small Enterprises Act, 102 of 1996, should be considered and used as a guide to determine whether the CPA applies to a franchise agreement. The development, growth and success of the franchising industry depends on the education of prospective franchisees wanting to adopt the franchising business model and invest in the industry. The CPA does not recognise or promote the roles of the various stakeholders (franchisors, franchisees and the government) with regard to the provision of education, training, ongoing support and assistance to prospective franchisees. This thesis proposes that mechanisms to enhance the education of prospective franchisees should be promoted, such as tandem franchising, obtaining advice undertakings from prospective franchisees before concluding franchise agreements, and increasing the role of the Consumer Commission in providing franchising education.
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- Date Issued: 2017
How can a potential franchisor establish a successful franchise in fast moving consumer goods
- Authors: Esmeraldo, Rosa
- Date: 2004
- Subjects: Franchises (Retail trade) -- South Africa , Franchises (Retail trade) -- Management
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10872 , http://hdl.handle.net/10948/235 , Franchises (Retail trade) -- South Africa , Franchises (Retail trade) -- Management
- Description: Franchising has become the latest trend in business expansion and business acquisition and with the South African franchising market estimated at being around 12% and growing rapidly, enormous potential for future growth is indicated. Companies both local and international are seeking franchise expansion opportunities in Africa despite the higher risks. The significance of implementing franchises into Africa is the filtering down of business opportunities to the small and medium enterprise sector. It can be said that franchising promotes business growth and private ownership, while improving the quality of life of the poor through its impact on income and employment. A franchise organisation that grows too quickly might not have the necessary ‘factors’ in place to support all of the units properly. In the survey conducted, it was indicated that the franchise business practice echoed the literature reviewed. All the steps necessary to establish a franchise are important but not necessarily as equal. The more matured franchisee needed less guidance from the franchisor and relied more on the business concept and location. Potential franchisors need to take the necessary steps to establish a franchise and treat each step as an important part of the franchise process.
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- Date Issued: 2004
The development of a model on which to base franchise relationships
- Authors: Kirabira, Godfrey
- Date: 2002
- Subjects: Franchises (Retail trade) -- South Africa , Franchises (Retail trade) -- Law and legislation -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:10920 , http://hdl.handle.net/10948/85 , Franchises (Retail trade) -- South Africa , Franchises (Retail trade) -- Law and legislation -- South Africa
- Description: This paper aims at developing a model on which to base good quality franchise relationships. The franchise sector has the potential to generate wealth for the franchisee and the franchisor, create employment and be a tool of empowerment. It is also associated with relatively less risk than other forms of self-employment. However, there have been a disturbing number of failures in the sector and reported cases of abuses of franchisees by franchisors. Some franchisors have sought liquidation of franchise units in courts of law. An investigation was commissioned into the sector with the objective of uncovering problems in the quality of the relationships in the sector. The obligations of both the franchisees and franchisors were stipulated. Aspects of quality were then considered to lay a foundation upon which improvements in the relationships could be based. This was followed by a survey to find the performance gap between the quality of service that was expected from the franchisor and what the franchisees were actually receiving. Five dimensions of service quality – tangibles, reliability, responsiveness, assurance and empathy were empirically investigated. The findings of this research revealed that the quality of service of franchisors fell short in all dimensions. It is arguable that other aspects of quality are being neglected by the franchisors. It is against this backdrop that a model is proposed to improve the quality of service in the franchise relationships. The model incorporates contemporary ideas on quality. Principles of total quality management, quality function deployment, customer satisfaction and self-assessment are applied to the franchise relationship. The use of the model will contribute towards better relationships in the franchise sector.
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- Date Issued: 2002