Spurred on by the success of last year’s inaugural Franchise Leadership Summit, FNB Franchising and Franchising Plus joined forces once again to present an even better event. The event extended over two days, with the first day’s focus on insights of interests to franchisors and the second day’s speakers addressing a wide range of topics of relevance to franchisors and franchisees alike.
Introduction
In addition to an outstanding panel of speakers, the event attracted a record number of delegates. They enjoyed presentations by experts drawn from the areas of franchising and service providers to the sector. Networking opportunities added additional value to the proceedings.
In his opening address, events MC Peter Nodoro thanked FNB Franchising for making the event possible and concluded with a brave prediction. Referring to the quality of the speakers and the number of leading franchisors and service providers who attended as delegates, he said, “This event has the potential to shape the future of franchising in South Africa. If it doesn’t start to happen here, it won’t happen at all.”
Highlights
Not only were the topics selected with care but the speakers had put a lot of work into making their individual presentations memorable.
Innovation as a pillar of success
Jacques Celliers, CEO Designate of the award-winning FNB, delivered the keynote address. He explained that innovation has become the catalyst that drives business success, and needs to become part of an organisation’s DNA. FNB achieve this by encouraging and empowering every team member to be an innovator. No innovation is worthwhile unless implementation follows.
Global postcards from KFC
Doug Smart, MD: KFC South Africa, gave the audience a fascinating insight into the workings of this very large franchisor which arrived on our shores in 1971 and has become part of the South African culture to such an extent that many South Africans now perceive it to be a local brand. KFC have an aim to balance menu consistency with local taste differences; in South Africa, for example, pap is on the menu. Corporate social responsibility is taken seriously by KFC South Africa, and thanks to its efforts, the KFC
Add Hope Programme currently feeds 40,000 hungry children a month.
Property panel: how landlords and franchises can cooperate
The organisers managed to arrange a panel discussion between landlords and franchisors. Both sides had ample opportunity to air their grievances and on conclusion of the debate, consensus was reached that neither landlords nor franchised brands can exist in isolation. It is in the interest of both parties to create a relationship in the form of a triangle in which the landlord, the franchisor and the franchisee are equally invested.
The session concluded with a mutual resolve to meet periodically to discuss issues of common concern for mutual benefit. Subject to implementation, this can be seen as a landmark achievement.
How does franchising work?
Anita Du Toit and Eric Parker, partners at Franchising Plus, made a joint presentation aimed at prospective franchisees.
Eric Parker painted a vivid picture of the advantages of being an entrepreneur and bemoaned the fact that schools and universities continue to train people for a career in the corporate world. He made the point that job security has become a myth.
Anita Du Toit demystified the concept of franchising by setting out in detail how it works and what opportunities are available.
Anita Du Toit of Franchising Plus; with Morne Conje of FNB; and Philip Vosloo and Hein Scheffer of AutoMagic
Will I be a suitable franchisee?
Ingra Du Buisson-Narsai, MD: getMeaning, is a registered organisational psychologist. She urged prospective franchisees to consider their situation carefully before signing a franchise agreement. A franchise, correctly chosen, can be a great entry into business, but it is not the right vehicle for everyone.
How to become a positive and compliant franchisee
Burt Gunning personifies the successful multi-unit franchisee. He stressed that his success franchisee is the result of a very strong trust relationship with the franchisor. In addition to operating a sizeable business, Burt is an active participant in all programmes KFC South Africa offers.
How to finance a franchise
This presentation was delivered by Morné Cronjé, Head: FNB Franchising. At the outset, Morné stressed that FNB Franchising is keen to fund approved franchise concepts because the bank sees them as a safer entry into business than an independent start-up. Morné specified what the individual must be able to do in order to qualify for funding.
Location, location, location
In his presentation Stephen Walters, a director of Fernridge Consulting, explained that far too many people sign leases without examining the viability of the site. It’s not good enough to know that a lot of people live within the catchment area of a site, or pass it regularly. The important criteria are the degree of these people’s likely interest in what you have to offer and their ability to afford it.
Stephen Walters and Sybrand Strauss of Fernridge Consulting with Vera Valasis, the executive director of the Franchise Association of South Africa
Other topics that were addressed during the summit included: Making multi-unit ownership work | The fruit & veg story | The first fifty metres | Digital media trends and best practices for franchisors | Building a category while building a brand | The growth of emerging market franchises | What you should know about the CPA.
Epilogue
At the end of the summit, delegates left enriched by a host of newfound insights that will help them to develop their franchises with renewed vigour. Audience feedback received to date encouraged FNB Franchising and Franchising Plus to set preparations for next year’s event in motion. They very much hope to see you there!
Report written by Kurt Illetschko.
www.franchisingplus.co.za
www.franchisesummit.co.za