'n Evaluasie van die franchise konsep vanuit 'n regsoogpunt

Abstract

An evaluation of the franchise concept with special focus on the franchise agreement as applicable in the Security Industry with specific reference to SSH Security Services (Pty) Ltd. The first chapter consists of an introduction which sets out the background of the franchise concept. A distinction is made between the product type franchise and the business type franchise. A background and discription of the services which are rendered by SSH is set out under the next heading. SSH experienced operational and financial problems as a result of the major growth which was realised during a relative short period of time. This situation restricted further growth. The board of directors intended to change the structure of the business in order to capture the said problems. The question then arises whether a franchise concept would be the sollution. With a view to formulate a workable solution to this problem, this study was undertaken. It is inevitable to fully understand the background and history of the franchise consept before any conclusions can be drawn. This is set out in Chapter 2. The aspect of conversion franchising is also investigated.

In Chapter 3 the franchise agreement is studied in more detail, as this agreement is the most important document which is to be signed by both the franchisor as well as the franchisee. Special mention is made of certain restrictive practices contained in most franchise agreements, which clauses can be declared unlawful in certain circumstances. In Chapter 4 the theory which was studied in the previous chapters, is applied in a pratical manner, in order to draft a franchise agreement which is applicable in the security industry. In Chapter 5 the conclusion is made that the franchise concept can successfully be adopted in the security industry. More specifically, with regard to SSH it is found that the franchise concept is the solution to its problems.