Compilation of a profile of the successful franchisor in the South African franchise industry

Abstract

The aim of this dissertation will be to compile a profile of the most important strategic management and leadership skills of the successful franchisor in the South African franchise industry. The role of the franchisor as entrepreneurial leader also plays an important role regarding the compilation of this profile. This will hopefully supply insight, guidelines and information to prospective franchisees as well as investors regarding "due diligence" - the process of doing the necessary homework before embarking on any franchise venture or engagement. The first chapter of this dissertation is an explanation of the franchise concept, and also how, when and where it originated. It also supplies information regarding current problems and challenges facing the South African franchise industry. The advantages as well as the disadvantages for investing in such a venture is also discussed. Chapter 2 discusses the many forms of franchising . It also supplies a formal definition of a franchise. Attention is drawn to the fact that notwithstanding a formalised agreement between franchisor and franchisee and a code of ethics written into such agreements, the franchise industry in South Africa is currently viewed with a lot of scepticism. As stated in chapters 1 and 2, the main responsibility for the long-term success of a franchise concept lies with the franchisor. Chapter 3's aim is to determine through theoretical study and discussion not only the entrepreneurial mind of the franchisor in thought and action, but also the most important strategic management and leadership skills required to ensure long-term success. Chapter 4 entails a field study by means of structured interviews, questionnaires and telephonic discussions with 10 successful franchisors to establish this profile. The chapter ends with an evaluation and summary, as

result, of the most important strategic management and leadership skills as identified by these 10 franchisors. Chapter 5 finalise this dissertation with the conclusion that the successful franchisor, either as individual entrepreneur or experienced management team, indeed dispose of the required strategic management and leadership skills necessary to ensure the long-term success and growth of a concept. The successful franchisor assigns a high priority to deliverance of quality service, integrity, persistence, reliability, innovation and creativity. The successful franchisor also posseses above-average communication capabilities and have the necessary know-how and ability to attract the relevant skills and persons necessary to stay competitive and entrepreneurial. This profile of the successful franchisor, as well as additional recommendations given in this chapter, will hopefully provide guidance regarding the exercising of true franchise "due-dilligence", specifically to investors wanting to invest in a franchise.