Africa: Pan-African Franchise Association Could Promote the Franchise Industry

In some African countries, there are several strong franchise associations that provide industry oversight.  Well established franchise associations such as the Egyptian Franchise Development Association and the Franchise Association of South Africa play an important role in promoting compliance with codes of ethics and best practices, whether they relate to disclosure obligations by the franchisor or the resolution of disputes.  As is commonplace in other parts of the world, franchisors face losing association membership if they flout convention or commit abuses.

 

Clearly, more can be accomplished.  Franchised businesses on the continent could create and join a Pan-African Franchise Association to serve as a resource center for the African franchise industry and practitioners through the continent to foster an understanding of franchise “best practices.”

 

An important function of the association could be to arbitrate disputes between franchisor and franchisees.  This would be particularly important in those African countries where the judicial system is not particularly efficient.  These associations could also,  in effect, be self-regulatory bodies of the franchise sector.  Among other things, they could even facilitate grow in the industry by organizing franchise shows and/or meetings between prospective master franchisees and international franchisors, manage the qualification process of interested franchisors, organize international trade missions and seminars on topics of interest.

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