The history of our local pioneers that commenced franchising can be traced back to the mid-1960’s. Franchising is used as the preferred vehicle for expansion by companies active in fields as diverse as automotive products and services, food, entertainment, business service and retailing.
When one examines the South African franchise sector, two things stand out:
- The fact that around 90% of South Africa’s franchise opportunities is based on locally developed concepts. This is in contrast to most countries outside the USA where foreign brands tend to dominate the market. Thanks to sanctions when franchising took roots, our local brands adopted a wait-and-see attitude, giving South African firms time to develop.
- The high level of professionalism displayed by bona fide franchisors with contributed support by the Franchise Association of Southern Africa who kept abreast of international developments and introduced them to local franchisors.
A major segment that contributes accolade levels of franchise professionalism is the new modern centralized accounting model known as “NATIONAL ACCOUNTING MANAGEMENT” system.
WHAT IS ‘NATIONAL ACCOUNTING MANAGEMENT’ PROGRAM?
It is a unique concept of financial data processing, managing chart of accounts, maintaining and reporting financial performance of a franchise or retailing network. It’s unique as the appointed unit responsible for preparing the financial reports remains an independent registered professional body and stands parallel with the franchisors organizational hierarchy.
WHY HAVE A ‘NATIONAL ACCOUNTING MANAGEMENT’ PROGRAM?
Franchise statistics of 2010 reflects that 35% of new franchisees fail within the first 2 years and only 29% remain in business during the first decade of trade. Franchisors can minimize the rate of failure OR bankruptcy by implementing empowering corporate coaching programs, (based on the Franchise E-Factor, six stages of franchisee life cycle behavioral patterns), with efficient financial reporting systems coupled with business rescue ailments from beginning to maturity stage. Our unit team comprises of highly specialized skilled staff adequate to advice the franchisor and franchisee within any professional field. We become YOUR ‘trusted business partner and advisor’ at the point of time when most NEEDED!
WHAT ARE THE PURPOSES AND BENEFITS TO THE FRANCHISOR?
- Ensuring all franchisees implement Best Business Practice and corporate governance from the beginning;
- Franchisees accounting and statutory returns are prepared by same independent accounting unit maintaining uniformed accounting policies throughout network;
- Management reports are prepared with Performance Indicators as per historical network bench marks highlighting potential pitfalls with recommended actions to rectify situation;
- Efficient and fast reporting measures to Operations Management will avoid prospective business distress;
- Improved management collections of Royalty and Brand development Fees by minimizing corporate purchase sabotage from franchisees;
- Assist Field Service Consultants with ongoing mentoring stores with respects to financial performance and analytical reviews;
- No cost to Franchisors as accounting, administration fees is borne by the franchisee.
WHAT ARE THE PURPOSES AND BENEFITS TO THE FRANCHISEE?
- All accounting, secretarial duties and financial reporting functions are prepared by one accounting firm with vast knowledge and skill of the franchise sector;
- Additional invaluable specialized skill such as corporate coaching (all levels, ie: group, management and individual), legal and labor consulting (CCMA representations), turnaround corporate renewal programs is included in same package tailor made for each franchisee unique needs;
- Unit is an Independent registered accounting body, therefore maintains element of confidentiality and mediation between Franchisor and Franchisee on a non biased bases;
- Warning alarms is predicted and detected timorously therefore eliminating future heart ache and ensure a ‘failsafe’ to recovery stage;
- Fees are discussed and agreed depending on size of business, status of operations and assessed needs of each individual franchisee;
- Engagement is finalized with terms and conditions of delivery and expectations;
- No additional fees are charged unless otherwise agreed between parties.