Franchising (South Africa)

Franchising (South Africa)

In recent years, franchising (a very specialised and unique form of licensing) has become an increasingly popular way of doing business. One of the explanations for doing this is that franchising combines the strength of their corporations with those of small businesses. It is a relatively low-risk way for people to get into business themselves and offer people the freedom to earn, manage and to direct their own business, while having the support of an established business.

At the same time it also provides a means for companies to expand effectively without incurring the high overheads and management difficulties usually associated with the establishment of a branch network.When an organisation has developed intellectual property, particularly in relation to products, the challenge is often to get those products out in the market. If the organisation does not have the capacity, funding or resources to do so itself, it is often a good idea to involve other organisations in order to accelerate the distribution of the products or the provisions of the organisation’s services in the market.

The franchising group of Adams & Adams can assist with all legal aspects of franchising relating to:

  • Licensing, distribution and franchising agreements
  • Consumer Protection Act compliance
  • Companies Act compliance
  • Litigation