Commercial Law

Franchising in South Africa

Our franchise lawyers are able to assist with all legal aspects related to franchising agreements and ​commercial litigation ​pertaining to franchising​.

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

Frequently Asked Questions About Franchising

A franchise operation is defined as a contractual relationship between a franchisor and franchisee in which the franchisor offers or is obliged to maintain continuing interest in the business of the franchisee in such areas as know-how and training.

The franchisee operates under a common trade mark, format or procedure owned or controlled by the franchisor, under which the franchisee has or will make a substantial capital investment in his business from his own resources.

Types of Franchises
Product and trade mark/name franchise – A product or trade mark franchise is the simpler form of franchising in which the franchisee is only entitled to use the franchisor’s name or trade mark and product.
Business format franchise – In a full business format franchise, the franchisee uses the franchisor’s entire business concept, which includes the name, trade marks, copyright, goodwill, know-how, trade secrets, trade dress and similar intellectual property.

The franchisor’s obligations are divided into two:

  1. Initial obligations – The franchisor will assist with the setting up of the premises or outlet, furnish the franchisee with the operations and procedures manual, disclose the entire franchise system to the franchisee and train the franchisee.
  2. Ongoing obligations – The franchisor’s ongoing obligations include additional necessary training from time to time and also to assist with problems, management and to provide guidance, in addition to the ongoing management and development of the franchise system.

How Our Franchise Attorneys Can Help You

Franchising in South Africa

Our franchise lawyers are able to assist with all legal aspects related to franchising agreements and ​commercial litigation ​pertaining to franchising​.

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

About Franchising

A franchise operation is defined as a contractual relationship between a franchisor and franchisee in which the franchisor offers or is obliged to maintain continuing interest in the business of the franchisee in such areas as know-how and training.

Product and trade mark/name franchise – A product or trade mark franchise is the simpler form of franchising in which the franchisee is only entitled to use the franchisor’s name or trade mark and product.

The franchisor’s obligations are divided into two:

Contact one of our Franchising Law Professionals

How can we help you?

We have offices in Pretoria, Johannesburg, Cape Town, and Durban, please contact your nearest office for any legal enquiry or assistance.

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