Franchising In South Africa

• Comply with all legislation and/or regulations applicable to the franchise business
• Give effect to the Constitutional values of dignity and equality
• Refrain from all forms of unfair discrimination prohibited by section 9 of the Constitution
• Deal with all counter-parties to any contract relating to the franchise business, including the counter-party to a Franchise Agreement, in good faith
• Respond to all communications from any counter-party to any contract relating to the franchise business, including the counter-party to a Franchise Agreement, within a reasonable period of time
• Comply with the provisions of the Code of Advertising Practice of the Advertising Regulatory Board in respect of all marketing, promotions and advertisements used in the course of trade.

Take reasonable steps, throughout the life of a Franchise Agreement, to provide Franchisees with training, supervision and assistance in the operation and conduct of the franchise business.

Deposit all money received in contemplation of the conclusion of a Franchise Agreement into a separate banking account maintained by the Franchisor for the purposes of receiving such payments.

At all times maintain accurate records of all payments into the banking account referred to in subsection (ii) above including at least:

• The name of the person from whom the payment was received

• The name of the person on behalf of whom the payment was made if this differs from the person making the payment

• The amount so paid

• The date of payment

• Any amount refunded to any person, including the date of the refund and the person to whom the refund was paid.

• Be the owner of, or have legal rights to the use of and/or to permit the use of any intellectual property used in connection with the franchise business including all material in which copyright subsists, trade names, trade marks or other distinguishing identification

• Select and accept as Franchisees only those who, upon reasonable investigation, appear to possess the skills and resources sufficient to carry on the franchise business

• Notwithstanding the provisions of any Franchise Agreement, notify Franchisees in writing of any alleged breach of a Franchise Agreement and, in such notice, afford the Franchisee a reasonable time within which to remedy such alleged breach, save only where a Franchisor is entitled to summarily terminate a Franchise Agreement

• Timeously pay to the FIO all levies arising in terms of or in connection with this Code.

• Only make authorised use of the Franchisor’s intellectual property; and comply with the Franchisor’s operations manual and business system
• Devote their best endeavours to the growth of the franchise business and to the maintenance of the franchise system and identity, including any trade marks and the reputation of the franchise system
• At all reasonable times and upon reasonable request, supply the Franchisor with verifiable operating data and allow the Franchisor to have access to the Franchisee’s premises from which the franchise is carried out and access to the records pertaining to the franchise business
• Not disclose to third parties any know-how, proprietary information, confidential information, trade secrets or intellectual property pertaining to the franchise business, either during nor after termination of the Franchise Agreement
• Not compete with the franchise system without the written consent of the Franchisor, in particular by appropriating or diverting any know-how, proprietary information, confidential information, trade secrets or intellectual property pertaining to the franchise business
• Timeously pay to the FIO all levies arising in terms of or in connection with this Code.