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PROPERTY
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HEALTH AND FITNESS
EDUCATION
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ENERGY SECTOR
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PULLING TOGETHER
When it comes to franchising, the keyword is partnership The beauty of belonging to a franchise is that you have a wealth of partners to draw on, particularly during trying times, writes André Beck, Head of Franchising at Standard Bank.
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t Standard Bank, we have always appreciated and embraced the entire franchising industry. As a major contributor to South Africa’s GDP – over 13% according to the Franchise Association of South Africa (FASA) – franchising plays an important economic and social role in our country. Through franchising, business owners can live their entrepreneurial dreams and numerous jobs are created and supported. What has always struck me personally is how much franchising is also a part of our personal and family lives as individuals. These are the home-grown brands that we have grown up with. They fill our childhood memories and because they are well-established and sustainable, they are consistent and reliable features in our social and economic spheres.
This interconnectedness is a hallmark of franchising. Over the course of 2020 we have worked closely with our franchising partners to ensure their businesses survive this pandemic. We’ve leveraged our strong balance sheet to support franchisors and we’ve helped franchisees with payment solutions that will hopefully get them and their employees through the upcoming months. Most importantly, however, we’ve linked our networks and shared our expertise to ensure that as a country and an economy we can get through this together. Franchising is built on partnerships covering the entire value chain, including suppliers, customers and a banking partner. As a franchise role player, now is the time to nurture these partnerships.
YOUR FRANCHISOR Franchising is built on a broader system, and the advantage of this large family is that you do not need to solve your problems alone. Success and experience are built over time, which enables innovation and adaptability. Franchisors are using this
experience to support their franchisees through Covid-19 and beyond, but it’s also important to be proactive as a franchisee to draw on that knowledge. Are you engaging with your franchisor for support? The franchisor can assist with negotiating reduced rentals with landlords, discount on fees and managing the supply chain.
YOUR FELLOW FRANCHISEES A network of franchisees is one of the most important, yet underrated benefits of belonging to a franchise. Have you reached out to your fellow franchisees to discover what is and isn’t working in their businesses right now? Have you shared your lessons with them? What ideas do they have that can assist you in diversifying your revenue stream? Are you sharing your ideas with your franchisor? How are you collaborating to adapt your business to the realities of Covid-19, and the shift in customer expectations resulting from lockdowns and social distancing? You will need to sell any ideas that you develop to your franchisor before you can test them out, so stress test them before you pitch them. You might find that other franchisees are developing their own solutions as well, which is why it’s so important to reach out to each other. Drawing on multiple different insights and experiences gives all franchisees an incredible pool of resources. For example, perhaps a franchisee is struggling to navigate UIF processes for their employees. By reaching out to their network – and franchisor, of course – these questions will be answered. We’ve discovered that we are closer to our clients than we’ve ever been. Thanks to multiple digital platforms and an ever-increasing familiarity with digital communication and collaboration tools, assistance is only a phone call away. We’re no longer waiting for meetings to discuss issues or find solutions together. Instead, communication is more immediate, which means challenges can be solved in real-time. Are you tapping into this network? It could be your greatest asset.
F ROM T HE EDI T OR
SURVIVAL IN A TIME OF CRISIS
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ur experts interviewed in this issue of Franchising agree that franchises tend to be more resilient than the average stand-alone business. Robust systems, support networks and negotiating clout should be hallmarks of any franchise. It’s in the interest of franchisors to see their franchisees through the worst of it. There’s doubtless a gain when seeking finance from banks, but these understandably consider the franchisor’s standing and their role in assisting during troubled times before granting a loan (page 20). For industries especially hard hit, like fitness, such support goes beyond waiving fees and negotiating discounts – franchisors have been lobbying government and investigating insurance relief options for members (page 23). The restaurant industry has suffered immensely too and is learning
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how to create spaces where customers can feel safe (page 13). Green shoots are sprouting in education, where the growing demand for STEM skills provides potentially lucrative opportunities for franchisees (page 24). And in the renewable energy industry, great things are happening (page 27). And extraordinarily, there are success stories too. Neighbourhood grocery stores have reaped the benefits of a populace unwilling to travel to big shops or eat out (page 19), while the property market has been flying since the easing of lockdown restrictions, with several franchisors reporting an upsurge not just in buyer interest, but also that of potential franchisees (page 9).
Anthony Sharpe
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EDITORIAL Editor: Anthony Sharpe Content Manager: Raina Julies RainaJ@picasso.co.za
Contributors: Samantha Barnes, Trevor Crighton, Caryn Gootkin, Levi Letsoko, Anél Lewis, Lisa Witepski Copy Editor: Brenda Bryden Content Co-ordinator: Vanessa Payne Digital Editor: Stacey Visser
Editor
Contents
Published by:
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DESIGN Head of Design: Jayne Macé-Ferguson Designer: Mfundo Archie Ndzo
SALES Project Manager: Roman Ross romanr@picasso.co.za | +27 73 253 9440
Sales: Andre Theunissen
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FRANCHISING
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PROPERTY
Real estate is still a great franchise investment sector
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HOSPITALITY
Coffee shops and eateries are reimagining their spaces and services
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RETAIL
Most grocery franchises have managed to weather the economic storm
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FINANCE
Where to access funding for start-up franchises
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HEALTH AND FITNESS
Being part of a collective in times of crisis matters
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EDUCATION
Online programmes mushrooming due to lockdown restrictions
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ENERGY SECTOR
Renewable energy provides unexpected opportunities
PRODUCTION Production Editor: Shamiela Brenner Ad Co-ordinator: Johan Labuschagne Subscriptions and Distribution: Fatima Dramat, fatimd@picasso.co.za
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COPYRIGHT: Picasso Headline. No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material. Franchising is published by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline. All advertisements/advertorials and promotions have been paid for and therefore do not carry any endorsement by the publisher.
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THE RECOVERY OF FRANCHISING IN 2021 Despite the challenges and setbacks, the franchise sector is focusing on recovery, revival and becoming even stronger
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he Franchise Association of South Africa (FASA) started 2020 with the release of the 2019 Franchise Survey which, although reflecting a strained economy, still showed encouraging growth and a healthy sector that contributed an estimated turnover of R734-billion, equivalent to 13.9 per cent of the country’s gross domestic product (GDP). Since then, the entire world seems to have been turned on its axis as many industries are now forced into unfamiliar territory and have to adopt either fight or flight in this seemingly apocalyptic era. The pandemic of 2020 has fast-tracked the upcoming fourth industrial revolution (4IR) strategy and catapulted the world into making changes far sooner than expected and changing the way business is conducted.
Now is the time for franchisors to strengthen their business format and systems and make their concepts relevant – not just for consumers, but also for prospective franchise buyers. ADAPT AND INNOVATE TO SURVIVE
IMAGE: ISTOCKPHOTO.COM
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A DV ER T ORI A L
While the picture for 2021 and beyond will prove to be vastly different, one of franchising’s biggest attributes is its ability to adapt and innovate. As the world struggles to recover economically, businesses worldwide will be hard-pressed to review, regroup and recover. Franchises in particular, through their “strength in numbers” and their solid support mechanisms, are showing signs of recovery and the sector remains one of the most resilient. The franchise sector is leading the way in recovery, and globally we are seeing the determination of both franchisors and franchisees to overcome the challenges and forge ahead with revival plans.
Going into business is a risk and a challenge at the best of times – no one has a crystal ball to predict how things will turn out. As franchising is very much like a marriage, which needs to be continually worked at, open communication is the key to being successful – both for the franchisor and franchisee. Survival then becomes a matter of being able to adapt to changes and work as a team to weather the storm and plan for the upturn and future success. This interdependency in franchising is the key to the success of this business format. Making sure that both parties are successful is crucial to the survival and growth of any franchise concept.
GOOD FROM BAD Every cloud has a silver lining, goes the saying, and while it might not appear so, opportunities do arise out of adversity. This is a good thing for entrepreneurs looking to start new franchise concepts and for the many people who find themselves out of work and looking for an investment opportunity. Even during the pandemic, some entrepreneurs have acted upon new ideas and forged a new path to business success enabling thousands of people to choose franchising as a safer way to “go into business for themselves, but not by themselves”. Now is the time for franchisors to strengthen their business format and systems and make their concepts relevant – not just for consumers, but also for prospective franchise buyers. Now, more than ever, the role of the Franchise Association is crucial in bringing together franchise brands to analyse the impact of the pandemic and band together to lobby government to assist in rebuilding the economy and re-establishing the sector as an important contributor to the country’s GDP. The FASA board agrees that it is in times of crisis that the franchise model is tested and those with a strong, resilient structure and healthy franchisor/franchisee partnerships will survive and go on to prosper and become even stronger. FASA will be embarking on a series of virtual workshops aimed at assisting franchisors to navigate the challenges of recovery.The organisation will also offer seminars on emerging opportunities for prospective franchisees. To be kept in the loop, email fasa@fasa.co.za.
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PROPER T Y
THE STATE OF REAL ESTATE The property market bounced back remarkably in the wake of easing lockdown restrictions, bringing more franchisees into the real estate business. By ANTHONY SHARPE
E
very economic sector suffered under the initial strain of the coronavirus pandemic and associated lockdown, and real estate was no exception. What was perhaps exceptional is the rebound in activity after lockdown restrictions were eased: according to FNB, buyer interest on property portals surpassed pre-COVID-19 levels, as did the concomitant new mortgage applications. “From 23 March to the end of April, the deeds office was shut, so we couldn’t get registrations and real estate agents couldn’t make any money,” says Dean Ferreria, president and CEO of PropertyGuys.com Southern Africa and several other real estate interests. However, Ferreria says, business picked up quickly when the deeds office reopened. “There’s been such good uptake from buyers and sellers alike, and the real estate industry has thrived; we’ve seen record numbers in the past few months in terms of year-on-year sales. We’ve also managed to buckle down on expenses as our industry can operate from anywhere.”
The Engel & Völkers academy offers franchisees and real estate agents in-house training.
GROWTH FACTORS Craig Hutchison, joint CEO Southern Africa at Engel & Völkers, shares this positive sentiment: “We’ve definitely seen an uptick coming out of lockdown for two reasons,” he says. “We’re in a record low interest rate environment – first-home buyers can now pay the same on a mortgage bond as they would on a rental. “People have been also looking at lifestyle changes through the lockdown period,” adds Hutchison. “With so many people working remotely, there’s a lot of semigration happening out of the main Dean metropoles. That’s driving Ferreira a lot of the market at the moment.” RealNet MD Gerhard Kotze says cheaper areas offering easy access to public transport are also popular. “At the higher end, the increase in remote working has boosted the popularity of live-work-play areas like Century City, Melrose Arch and Menlyn Main,” says Kotze. “Also in demand are family homes and retirement units in popular country and coastal areas where good internet connections facilitate working from home.”
ADAPTING TO THE NEW NORMAL Ferreira says that the PropertyGuys franchise, which originated in Canada and allows homeowners to sell their own homes using tools provided by the business, has seen great interest, even during the pandemic. “We managed to put three new franchisees into the market in November,” he says, “and we’re still onboarding new people – we’ve got five or six due to start early this year.” It was always the intention to align the business with the Franchising Association of South Africa (FASA), as that gives them great credibility, says Ferreira. “Association with FASA generates brand name recognition. I also wanted a franchise business that offered strong protection for franchisees, so that they didn’t question their decision to buy the business after the fact,” he explains. During a time when businesses are struggling everywhere, the franchise model can offer protection and assistance, says Hutchison. “During the initial lockdown, we met remotely once a week, motivating the network and sharing best practice.” The model has been so successful that 2020 was Engel & Völkers biggest growth year from a franchising perspective. “We grew our franchise network close to 20 per cent. I think that’s also down to people sitting in lockdown and reassessing what they want to do with their lives.” Chas Everitt CEO Berry Everitt says the group’s prior investments in online training and digitalisation helped manage the franchisorfranchisee relationship under the new normal. “We had been investing for several years before lockdown in the setup of our fully fledged online training academy, which has been not only highly popular with agents, but also a valuable resource for franchisees in the past few months,” says Everitt. “We also have very well-established remote working systems and a fully digitised transaction ecosystem, so our biggest adaptation was to switch from face-to-face meetings to regular Zoom meetings with our franchisees.”
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PROPER T Y
FICA AND REAL ESTATE AGENTS
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he Financial Intelligence Centre Act (FICA) is intended to counter money laundering and terrorist financing. As the property sector is identified as a prime target for such activities, real estate agents are defined as “accountable institutions” and have certain obligations under the act, including a risk management and compliance programme (RMCP).
DID YOU KNOW?
“ONE OF THE BENEFITS OF BEING PART OF A FRANCHISE GROUP LIKE OURS IS THAT WE HAVE NOW COMPILED OUR OWN RMCP IN TERMS OF THE ACT, AND CREATED A SCORECARD TO STANDARDISE THE PROCESS.” – GERHARD KOTZE, MD, REALNET Craig Hutchison, joint CEO Southern Africa at Engel & Völkers, says recent amendments to the act have necessitated additional training for reporting purposes, especially when it comes to cash sales. “It’s about knowing your clients and the source of their funds. It’s about asking the right questions and reporting appropriately to the FIC where necessary.” Chas Everitt CEO Berry Everitt says the amendments have made it necessary to begin the FICA assessments of both sellers and buyers much earlier in the property sale transaction, and have significantly increased the workload for professional agents. “Our standardised RMCP procedure makes it easier for them to be compliant, but they still face resistance from customers who don’t see the need to gather such in-depth
FAST FACT
Five interest rate cuts in seven months by the South African Reserve Bank, in response to the anticipated economic damage of the coronavirus pandemic, took the prime rate to 7 per cent, the lowest it has been in 50 years. Source: ooba
information about their personal affairs and/ or company structures. It is important to deal with each customer, trust or company individually, work through the information required in their specific case and provide reassurances that we have the proper systems in place to keep this private,” says Everitt. Compliance with FICA and other regulations is a strength of the franchise model, says RealNet MD Gerhard Kotze. “One of the benefits of being part of a franchise group like ours is that we have compiled our own RMCP in terms of the act, and created a scorecard to standardise the process and assist our agents to be compliant in evaluating buyers and sellers. It also provides the necessary privacy assurances to clients in terms of the Protection of Personal Information Act.”
The first-time buyer approval rate in South Africa averaged 80.1 per cent from January to October last year, a slight improvement on the 80 per cent of 2019, and a marked improvement on the 68.5 per cent of 2016, representing a positive trend in loan approvals. Source: ooba
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eople spent more time than ever at home last year, and with the recent upsurge in COVID-19 cases and government prevarications on vaccine acquisitions, this year may not be all that different. Perhaps unsurprisingly, there’s been a spike in sales of hardware and home building supplies. Build-It marketing executive Chris Quayle says that since the franchise’s stores reopened on 1 May, they haven’t been able to keep up with demand. “We think this is due to a combination of factors. People have been spending a lot of time at home, looking at what they need
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to fix up. A large proportion of our stores operate in rural areas where many migrant labourers aren’t spending as much on transport as they normally would. A large proportion of that market doesn’t formally invest; investment comes in the form of adding to the house.” Build-It worked hard to support franchisees through the initial lockdown, explains Quayle. “We made various allowances and extended lifeboat support to our members. We smoothed payments that were due,
renegotiated with suppliers on behalf of franchisees to protect their cash flows and make sure they could remain cash-positive. Since the pandemic began we haven’t lost a single store.” Quayle believes there is plenty of opportunity in the building materials sector. “We’re hoping that, with the Chris Quayle president’s commitment to infrastructural development, there will be even more demand in the future.”
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HOME BUILDING DEMAND SOARS
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HO SPI TA L I T Y
BREWED FOR SUCCESS Passion for coffee is ensuring that coffee franchises thrive despite current challenges, writes SAMANTHA BARNES
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ntrepreneurs are adaptable by nature and can weather economic storms. Among these are some coffee franchise owners who have posted improved financial results since the lockdown. Amid the maelstrom, vida e caffè was voted Favourite Franchise in the Coffee Magazine Reader’s Choice Awards 2020 – beating out a host of other brands. “We are proud of our recent Favourite Franchise award as voted by the public,” said vida e caffè CEO Darren Levy. “Passion means coming to work to make our customers’ and staff’s day better.” On the subject of passion, vida e caffè franchise owner Justin Fenn says: “The most obvious passion that needs to be created is staff interaction with customers. Staff must be properly trained, incentivised to do well, and have a good working environment.” Fenn owns three vida e caffè stores in the Western Cape. “Last year (2020) was a year of extreme lows and highs,” he says. “Customers were not sitting in-store; they were walking with their coffee, children, dogs and bicycles.”
When customers could return in-store, Fenn noticed a massive upswing in business. “When we reached sit-down service again, we started to show growth over 2019, and then further growth.” Fenn is looking at his fourth store. “I bought in as I loved the brand and saw coffee was becoming a massive business. I am very happy with my decision.”
FUELLING UP Hitesh Patel, vida e caffè strategic executive, says: “There are countless opportunities across Southern Africa for prospective franchisees. vida is represented through the Shell network in most small towns. One of our partners, Lee Parker, wanted to move coffee from his convenience store and build a vida
Darren Levy
vida e caffè
container on his forecourt. He has since doubled the space due to demand.” Parker now owns five vida e caffè stores beyond the forecourt and his Caltex store is consistently in the top 10 stores nationwide. “This illustrates the ability for franchisees to grow,” Hitesh says Patel. “Working together Patel in new, innovative spaces and locations can result in success.” Metropolises in KwaZulu-Natal, Gauteng, Tshwane and Port Elizabeth remain underpenetrated,” adds Patel. “There are over 300 stores nationally with room to grow.” The fee for a new franchisee is R100 000 plus VAT and the cost for a new store of 60–100m2 is R1.2-million plus VAT. ›
“I BOUGHT IN AS I LOVED THE BRAND AND SAW COFFEE WAS BECOMING A MASSIVE BUSINESS.” – JUSTIN FENN, FRANCHISE OWNER, VIDA E CAFFÈ FRANCHISING
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HO SPI TA L I T Y
DID YOU KNOW?
LEGGING IT Bootlegger Coffee Company shares some of the vida approach. Managing director Pieter Bloem says: “We have great coffee, great company culture and a solid team behind us. There is a focus on the environment and sustainability including 100 per cent Rainforest Alliance-certified coffee, biodegradable packaging and a zero-waste drive.” Bloem says store locations are mostly aimed at creating community. “We aim to deliver a good product and are constantly tweaking operations, design and functionality.” Most Bootlegger stores reopened when the country entered level 3 lockdown. “Takeaway trade helps with cash flow, but cannot account for all overheads and bringing our employees back. We need the sit-down trade. TERS was a major role player and we have not had to enter into formal retrenchment programmes. Key lessons are adaptability and constant, clear and concise communication.”
GETTING ON THE MAP Bootlegger Coffee Company has 23 stores in the Western Cape and three in Gauteng, with a fourth waiting in the wings. The focus in 2021 will be on Gauteng, while there are still opportunities in the Western Cape. The
Successful leaders in food franchising don’t necessarily start in the food industry. McDonald’s South Africa CEO Greg Solomon was originally a civil engineer. The franchise has achieved 10 years of revenue market share and profit growth. Solomon emphasises the importance of sharing the brand aspirations. Bootlegger Coffee Company
pipeline for the next three years includes most provinces. Opportunity abounds for the entrepreneur, says Bloem, who shares the example of an exceptional franchisee: “We have a largescale franchisee in the Western Cape whom we term a ‘cluster franchisee’. They own and run seven successful Bootlegger stores – all opened in the past 14 months. They have employed their own internal operations and sourced their own sites.” Bootlegger Coffee Company builds stores for around R2-million–R3-million excluding VAT, size-dependent and accredited with major banks.
Source: Franchise Association of South Africa
FAST FACT
South Africa’s franchising economic output as a percentage of gross domestic product (GDP) ranks in the top five countries worldwide. With its contribution to GDP at 15.3 per cent (2017), the country’s franchise sector sits up with France, Australia, New Zealand and the Netherlands. Source: World Franchise Council 2017 Survey on the Economy Impact of Franchising Worldwide
COVID-PROOF DINING
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10 years. “Features include wraparound fold-stack windows for better air circulation, additional ventilation ducts, outdoor ordering hatches and an outside seating area,” says Kowarski. “While inside seating has been limited for now, there are a lot more seats outside.”
LAST CONTACT The space was designed to allow for contactless takeaway orders and delivery (with a separate entrance for third-party delivery drivers such as UberEats and Mr. D Food to limit the number of people in the store) to drive incremental revenue, explains Kowarski. “We created two ordering hatches outside the store for Kofi and Nü so customers can order without entering the store. “We also collaborated with technology partners Micros and Datasmith to develop a kiosk and mobile app system for contactless ordering: customers order via the kiosk or the mobile app. Orders can be placed for sit-down or takeaway.”
Kofi, which serves small-batch roasted African coffee among other offerings, has an outdoor ordering hatch.
While none of the stores at Kloof Street Village are franchised (yet), Real Foods Group has franchised stores for Nü, Free Bird and Kauai at other locations.
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afe dining in the age of COVID-19 extends beyond improved ventilation and wider spacing between tables – Kloof Street Village is a case in point. Real Foods secured the site in Cape Town a year ago, explains Dean Kowarski, the company’s founder. “Initially, we planned to build a new food hall concept with four separate brands – Nü Health Food Café, Free Bird, Schoon, and Kofi – offering a welcoming, slick and convenient dining experience with a range of options for the local community.” The pandemic forced Real Foods to radically reimagine the restaurant experience to make customers feel safe. “We considered the details that were becoming important to ensure a safe dining environment: ventilation and air circulation; maintaining physical space between people; outdoor spaces; and technology to facilitate contactless experiences,” says Kowarski. Real Foods reworked smaller details, which needed to be relevant for the next
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YOUR SUPPLY CHAIN From product suppliers to your logistics partners, your supply chain is critical to delivering your products or services. The reality is that all businesses have required some assistance during this period, and many business owners have negotiated terms with their suppliers and partners. We’ve seen landlords working closely with franchisees to reduce their rental fees and suppliers who have granted extended terms to franchisees to assist with cash flow. It’s important that we all work together in this regard. Asking for terms that are unreasonable and negatively impact your suppliers does not protect your business down the line. Similarly, they want to ensure that your business survives and that you continue doing business into the future. Transparent discussions around what your business is currently facing, where you need assistance and how you can help each other are essential at this time. Remember, everyone is feeling the impact of this pandemic. The key is that we can get through this if we work together and support each other.
YOUR CUSTOMERS Customers want to support the brands they know and love, but their needs and expectations are also changing. Are you currently re-evaluating your product offerings and channels of distribution, or hoping that things will just return to the way they were? One obvious and immediate trend that we have seen is virtual shopping, but we believe that this trend will continue. The public is still anxious about Covid-19 and we have yet to see whether there will be a second or even third wave of the pandemic. How aligned is your business to online trade? We’ve seen successful businesses forming partnerships to introduce a channel of delivery. The quicker you can align
to those partnerships, the better, particularly if you want to negotiate commissions and price points that work for your business and the delivery partner you contract with. We also believe that value-add offerings will be extremely important going forward. Consumer spend has been negatively impacted, thus offerings should be aligned to this trend. An example of this will be free WiFi and home deliveries. Contactless payment options, virtual shopping, as we’ve seen, and stores and products that address the realities of Covid-19 are all important factors to consider.
YOUR BANKING PARTNER It’s important that we all come together, which is why we are encouraging franchisees to reach out and connect with their networks. As a banking partner, we are working closely with our clients, not only to deliver banking solutions from payment options to financing, but to support the business holistically.
We have a dedicated team with a wealth of experience that we can tap into and offer various solutions including customer data and insights that are critical for the brands of the future to leverage. Now more than ever you need to know your customers and how they engage with your brand. Assumptions are not enough. The ability to adapt and innovate is born from tangible insights into your customers’ spending habits. These are the areas in which we are working closely with our clients. A blend of proven and innovative solutions will be required to address this new world we find ourselves in, and we are working faithfully with our customers to build the foundations for a strong 2021 and beyond.
CUSTOMER INSIGHTS
Know your customer intimately with CustomerViewTM This pandemic has reaffirmed the importance of knowing and understanding our customers. CustomerView™ from Standard Bank enables you to use data to understand your Standard Bank customer base. This Merchant Online reporting solution will help you understand your customers’ spending patterns and buying behaviours, and allow you to monitor performance and profiles across different stores. You can also compare and contrast these insights with other Standard Bank merchants within your industry. CustomerView™ will provide you with deeper insights into your Standard Bank cardholder customer base in terms of spend; taking into account dimensions such as age group, income bands, and location of customer, gender, returning customer, first-time customer and basket analysis.
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RE TA IL
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ost grocery stores have managed to stay afloat amid the economic destruction wreaked by COVID-19 for two main reasons: they stock essential items such as food, cleaning products and sanitising materials; and people are spending far more than usual on groceries with the whole family at home and little opportunity, at least in the first five weeks of the initial lockdown, to source meals from restaurants. There have even been prospects for growth, particularly with smaller local shops or convenience stores. “During lockdown, many customers wanted to stay and shop local,” says Chris Reed, group franchise director at Pick n Pay. “Our smaller supermarkets – including many of our smaller franchise stores – are located conveniently in the heart of communities. “Management at these stores went above and beyond to support their customers and keep everyone safe. Many introduced innovative services, like drive-through pick-ups, WhatsApp orders, and Click Direct, where customers could place their order for collection via email or phone.” This trend looks set to continue as we move through the second wave of COVID-19 and
SMALLER IS SOMETIMES BETTER Grocery franchises have fared better than many other retail sectors hit by the pandemic, as CARYN GOOTKIN discovers beyond. Many people are choosing to support smaller businesses in their neighbourhood rather than travelling to bigger shops and being exposed to larger volumes of people.
ENTERING THE MARKET For those wishing to take advantage of this trend, supermarket setup costs vary greatly depending on location, brand and size. “The costs of opening a Pick n Pay franchise store start at R2-million for an Express store (such as that on a petrol forecourt) and R12-million for a large supermarket,” says Reed. “Potential franchisees should note that the size of the store has a meaningful impact on both initial and ongoing costs as it influences both the cost of acquiring the franchise and the operating stock requirements,” says Anita du Toit, franchise development consultant
at Franchise Fundi. “Smaller neighbourhood stores or convenience stores will cost less due to smaller footprint and lower investment in stock maintenance.” It is important to factor in stock when analysing the ongoing costs of operating a retail franchise. “Most supermarket chains have central or regional distribution centres. Products are delivered to the stores either from there or straight from suppliers,” says Du Toit. “Franchisees often have accounts with both head office and suppliers. Ordering is mostly systemised and, in terms of the franchise agreement, franchisees often have to stock prescribed minimum levels of key items.” Reed points out that all Pick n Pay stores – both corporate and franchise-owned – have access to a centralised supply chain that includes daily deliveries of fresh and packaged goods.
“THE COSTS OF OPENING A PICK N PAY FRANCHISE STORE START AT R2-MILLION FOR AN EXPRESS STORE (SUCH AS THAT ON A PETROL FORECOURT) AND R12-MILLION FOR A LARGE SUPERMARKET.” – CHRIS REED, GROUP FRANCHISE DIRECTOR, PICK N PAY
FUELLING CONVENIENCE
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ost major supermarket groups have entered into partnerships with fuel retailers to ensure exclusive rights to set up their stores on that retailer’s forecourts, for example, BP/Pick n Pay, Engen/Woolworths, Caltex/Fresh Stop, and Shell/Spar. “Costs of a retail franchise on a forecourt vary greatly based on location and size, but we estimate the average to be between R2-million and R4-million,” says Sasha-Lee de Bod, franchise consultant at Franchising Plus. “COVID-19 and the shift to working from home hit the fuel industry hard, forcing fuel companies to think differently,” says De Bod. “They’ve had to seek alternative profit solutions. A 2019 report by data analytics group Lightstone found that the average person makes nine stops a month at a service station, so there is opportunity to diversify with a non-fuel strategy, especially now that South Africans will be travelling more locally than abroad for leisure and entertainment.”
The South African service station landscape is dominated by, in order according to the number of stations, Engen, Caltex, Shell, BP, Total, and Sasol. Together they account for 93 per cent of all service stations. Source: Lightstone Explore Fuel Increases and Consumer Behaviour
PetroCONNECT has partnered with BP and SETA to ensure that the fuel retail industry remains sustainable and prosperous, offering a two-week training course and practical exposure to people who potentially want to purchase a fuel service station franchise. Source: Franchising Plus
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F IN A NCE
The proven model of a franchise can smooth the road to securing finance, finds ANÉL LEWIS
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he SMME sector accounts for 66 per cent – 16.5 million – of all jobs in South Africa, says the Department of Small Business Development, but for many, funding a franchise or a start-up can be challenging. Partnering with an established brand is beneficial when applying for finance, says Nico Botha of Inani Incubator Accelerator, a nonprofit company that bridges the gap between the private and public sector for training, human capital development, funding and business support services. “The brand strength of a proven business model is definitely an advantage, showing that an established support structure and quality control exist,” says Botha.
Franchises have established business models, operational systems and training for franchisees to operate their respective franchises, says Morne Cronje, head of franchising at FNB. “Providing these skills reduces the cost of an individual developing their own model.” He adds that this further reduces the risk for banks as there is a track record of existing stores, which can be useful when considering opening a site. As many small businesses have been significantly impacted by COVID-19, Mercantile Bank, Morne Cronje a division of Capitec Bank Limited, also considers if the franchisor is offering relief measures, such as terms with stock supply or payment holidays, during this time.
THE PORTION OF THE FINANCING THAT A BANK WILL PROVIDE FOR A FRANCHISEE CAN RANGE FROM 40 TO 70 PER CENT DEPENDING ON THE INDUSTRY OR THE CONCEPT.
ALTERNATIVE FINANCE
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ome banks take a cautionary approach to lending to franchisees, especially if the brand is not well known, so many entrepreneurs opt for alternative funding streams. This may come either from the government in the form of grants, tax incentives, loans or equity finance, or from business development investors and other lending companies. Mxolisi Matshamba, CEO of the Small Enterprise Finance Agency (Sefa), says the government has established development finance institutions whose primary mandate is Mxolisi to support SMMEs Matshamba that are unable to
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attract private sector funding. Sefa is one of these, alongside its sister agency, the Small Enterprise Development Agency (Seda). “Sefa provides financial assistance to a maximum of R15-million, whereas Seda provides business development and services,” explains Matshamba. The funding is geared towards assisting entrepreneurs to establish, acquire or expand their businesses, says Matshamba. “Funding instruments can be packaged as asset finance, term loans and/or bridging facilities. Sefa plays a pivotal role in supporting reputable franchise brands that intend to expand and create sustainable jobs.”
CANVASSING FOR CASH The SME South Africa Report (2018) revealed that a considerable 94 per cent of respondents did not receive government
The portion of the financing that a bank will provide for a franchisee can range from 40 to 70 per cent depending on the industry or the concept. “The norm in the industry for unencumbered own contribution/investment from a franchisee’s own pockets is 50 per cent of the finance requirement,” says Cronje. Franchisors often prescribe the unencumbered cash contribution based on their business model. “This is to ensure that the business can afford lending levels to operate profitably and not labour the business with debt and ensure a healthy return on investment.” However, the contribution from the franchisee – be it 60 or 30 per cent – must be unencumbered finance, meaning that it is not listed as collateral for any other debt. Other contributing factors include the location of the business and standing of the franchisor, adds Botha.
DID YOU KNOW?
SME credit exposure to banks totalled R617-billion at the end of 2017, accounting for 28 per cent of total business loans. Outstanding direct government loans to SMEs were R11.48-billion, which accounted for 1.8 per cent of all SME loans. The Industrial Development Corporation and Sefa provided R297-million in credit guarantees. Source: South African Reserve Bank
funding. Of those, 9 per cent said they borrowed from family and friends. A quarter said they relied on financial support from business incubators, while 20 per cent sought funding from large financial institutions. Business development investors offer various forms of funding and are often open to supporting start-up businesses. Examples of financial resources include a hybrid model between venture capital, private equity, and/ or angel funding (less risky debt versus higher risky equity). This may not necessarily involve taking up shares in the business; the investor could opt to partner on specific transactions so that the business is best able to deliver on its contracts.
FAST FACT
“Sefa approved loans to the value of R1.4-billion in the 2019/2020 financial year, providing financial assistance to more than 74 000 small businesses and facilitating more than 87 000 jobs in the process.” – Mxolisi Matshamba, CEO, Sefa
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SHOW ME THE MONEY
UNENCUMBERED FINANCE
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Supporting your franchising growth journey FRANCHISING EXPERTS TO GUIDE YOU Our dedicated, hands-on teams will ensure that the right experts are brought in to advise you on the best solutions to meet your needs and will provide the relevant franchising and sector insights to steer you towards success.
Holistic solutions to help you achieve your franchising ambitions
Solutions to better serve your customers SNAPSCAN Provides quick, easy payments, for you and your customers, enabling them to pay with their phone. SnapScan cuts down on queues, improves security and is the future of payments. POCKETBIZ This quick and easy mobile payment acceptance device keeps your business handy in your pocket so that you can accept payments, wherever you may be. The device can process major card devices and mobile wallets like Apple Pay. AUTOLINK Reduce your customers’ queuing time and speed up transaction times by offering card-based payment solutions. mCOMMERCE AND eCOMMERCE SOLUTIONS Our mCommerce and eCommerce payment solutions provide quick and reliable payment acceptance on your website, mobi-site or app, in a secure environment 24/7. CUSTOMERVIEW™ Enables you to use data to help you understand your customers’ spending patterns and buying behaviours and allows you to monitor performance and profiles across different stores. You can also compare and contrast these insights with other Standard Bank merchants within your industry.
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Debt solutions BUSINESS TERM LOAN Provides you with access to funds for up to ten years. Your Business Term Loan is not repayable on demand, provided that you comply with the terms and conditions. Prearranged equal monthly instalments servicing capital and interest give you certainty around how much you will pay each month. MEDIUM TERM LOAN Offers you a customised lending solution with a fixed maturity period of between three and ten years. Capital is repayable according to an individualised agreement and only the interest is payable monthly. OVERDRAFT If you are looking for a cash flow solution that provides short-term access to funds when you need them most, then a Business Overdraft offers you a credit facility for immediate access to additional funds.
Universal banking solutions EMPLOYER VALUE BANKING We work with you to tailor a unique package of financial services and solutions that your organisation can offer to your employees as part of their overall benefits package at no cost to you or your staff.
2021/01/28 6:06 PM
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2021/01/19 9:41 AM
HE A LT H A ND F I T NES S
HEAVY LIFTING Gym franchises around the country have worked hard to sustain the industry through troubled times, writes TREVOR CRIGHTON Bodytec
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he fitness industry has been among the hardest-hit sectors in SA under lockdown. Initially closed for five months, gyms now face the prospect of smaller client numbers as people exercise greater caution and prioritise social distancing. Bodytec co-founder Sandra Leyck says that the company’s franchise studios closed for months and the group didn’t charge membership fees from May until August. “We wouldn’t have survived as a franchise if it wasn’t for the rental relief support we got from most of our landlords and TERS funding for most of the personal trainers,” she says. “While our 40 studios were closed, the support office team was busier than ever before, working from home to prepare for reopening.” Fit SA, the nonprofit Grant representative body Austin that works to assist
and promote the South African fitness industry, has done a lot of work under lockdown to try to keep its members’ facilities alive. Spokesman Grant Austin says that Fit SA has assisted member gyms with rental relief guidelines that have helped them negotiate fair relief with their landlords, and engaged with government and the rest of the bigger players to set the protocols under which the industry reopened. It monitored facts and surveys from overseas to back up its insistence that gyms are part of the solution rather than the problem regarding COVID-19 transmission, lobbied government on behalf of the industry for reopening dates, and is currently investigating insurance relief options for members.
SUPPORTING FRANCHISEES Bodytec waived the franchise and marketing fees and negotiated discounts for the group
with its suppliers and service providers. “Two of our studios did close despite this – but we have opened two more since September and are opening another one in February,” says Leyck. “Besides fi nancial support, there was plenty of mental support with a lot of one-on-one and group Zoom calls for everyone to compare notes and share lessons.” “We have found SA to be far more health-conscious due to COVID-19,” says Austin. “People have fi nally realised that regular exercise is not just about looking and feeling good; it is more about keeping your immune system strong. COVID-19 has reinforced what gyms have been saying for the longest time: forget about your weight on the scale, good health comes fi rst, then being able to lead an active life, and only then your outward appearance.”
“WE WOULDN’T HAVE SURVIVED AS A FRANCHISE IF IT WASN’T FOR THE RENTAL RELIEF SUPPORT WE GOT FROM MOST OF OUR LANDLORDS AND TERS FUNDING FOR MOST OF THE PERSONAL TRAINERS.” – SANDRA LEYCK, CO-FOUNDER, BODYTEC
HEALTHY EATING A PRIORITY
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eal Foods founder Dean Kowarski says that there is definitely more anecdotal evidence that South Africans are taking healthy eating more seriously in the face of the pandemic. Real Foods owns and operates the Kauai and Nü Health Food Café brands. “We have opened seven new Kauai stores since lockdown restrictions have eased as we believe that the healthy-eating macro trend is even more important now during the pandemic,” says Kowarski. “Several studies have highlighted the importance of a healthy immune system,
and eating healthy food is one of the most important ways to boost and maintain this system. We have seen relatively consistent sales and basket sizes since our stores reopened, which indicates that customers are still prioritising healthy eating.” Around half of the Kauai stores in SA are franchised and the other half are corporate. A retail store costs approximately R2.3-million to establish, ex-VAT. Real Foods head of franchising Guy Le Ray-Cook says that the company implemented a six-month royalty and marketing relief plan when the lockdown was initially announced – before even a single
“We set up chat groups and had regular Zoom meetings with the franchisees throughout lockdown.” – Guy Le Ray-Cook, head of franchising, Real Foods
Nü Health Food Café
franchisee asked. “We set up chat groups and had regular Zoom meetings with the franchisees throughout lockdown, discussing how to best deal with the ever-changing environment including providing information on landlord negotiations and TERS, insurance claims and how best to motivate staff,” says Le Ray-Cook.
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EDUCAT ION
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HIGHER-GRADE THINKING International brands considering the South African market may have to tweak their models. This has been the case for Seriously Addictive Mathematics (SAM), reveals strategic director Karma Palmer. She explains that all trainers are certified in Singapore pedagogy, and follow a coaching approach to enhance conceptual understanding. “Our model follows a classroom and worksheet experience where learners are placed on an individualised programme based on the outcomes of a meticulously designed placement assessment,” says Palmer. “This maps their programme, and the weekly progress
A NEW WAY TO LEARN With parents viewing education – maths and science education, in particular – as an investment, the sector is a potentially lucrative one for franchisees, finds LISA WITEPSKI evaluation creates scope for advancement or remedial help as and when necessary.” This has answered one of the chief weaknesses inherent in the South African education system: when educators tend to focus on teaching the content contained in textbooks rather than the desired outcomes stipulated by the CAPS curriculum. This is key because the world is moving to an emphasis on applying maths to real-life situations, which requires solving maths problems in different ways.
UNIQUE CHALLENGES Adding to South Africa’s challenges, says Palmer, is that not all schools have access to additional material enabling teachers to teach children different ways of solving the same problem. “Most classes have many kids in one classroom, making it difficult to implement a concrete, visual and kinaesthetic approach to teaching maths,” says Palmer.
“THE SECTOR HAS ROOM FOR ANY INNOVATIVE FRANCHISOR ABLE TO BRING A QUALITY, TESTED AND VETTED PRODUCT TO CLIENTS IN A PROFESSIONAL MANNER.” – ADRIE SCHOEMAN,
MANAGING DIRECTOR, MASTER MATHS
NUMBER SENSE
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n 2019, international behemoth Mathnasium – boasting more than 1 000 learning centres globally – announced its intention to enter the South African market, noting that there would be room for around 35–50 branches in the country. Cape Town-born owner/manager Mike Mulvey says that the system grew out of the methods pioneered by teacher Larry Martinek who “had a gift for making complex things understandable for everyone”.
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Palmer says that SAM has addressed this by reducing the number of children in lower-level classes and balancing the amount of work sent home weekly to accommodate the load of homework provided by South African schools. Kerry de Jager, head franchisor of Step Up Education Centres, maintains that changing circumstances require all brands to consider adaptations. For example, while Step Up has traditionally focused on providing afterschool remedial education, the organisation has broadened its offering to include morning sessions for children (and parents) struggling with home-schooling. Step Up has also ventured into the online space – a boon for the many children in areas outside major urban zones who cannot access centres.
Although online might appear to be the way forward, SAM’s Karma Palmer warns that this is not an especially effective teaching method for children below Grade 5 because their brains’ language centres are still developing.
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pportunities are rife in areas that focus on preparing youth for the changes introduced by robotics, AI, big data, technology and programming. Adrie Schoeman, managing director of Master Maths, says the sector has room for any innovative franchisor able to bring a quality, tested and vetted product to clients in a professional manner. Maths is an especially attractive niche for such players, says Schoeman, because access to tertiary education requires a solid NSC result and a tertiary qualification (especially in fields where maths and science are required) remains a key to career doors. That said, any new entrant to the field faces well-established competitors such as Master Maths, which has a 40-year track record and more than 150 franchises throughout the country. Schoeman attributes the company’s success to its ongoing investment in interactive products and services, input from curriculum specialists and a supportive franchise system that emphasis training.
Mathnasium has achieved its impressive global growth over 17 years by cultivating “number sense” and a “feeling” for numbers, making allowance for different learning styles and avoiding the “learned dependency” that may come about if a student bases their confidence on a single teacher. Is this model relevant in South Africa? “Maths is an international language that transcends language and culture,” says Mulvey. “Different people may have different ways to solve a mathematical problem, but in basic maths, numbers decompose, recompose and come together to give the same answer no matter the route taken to get there.”
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ENERGY SEC T OR
A BRIGHT FUTURE Opportunities abound in South Africa’s fractured energy-supply market with renewable energy promising to light the way, writes LEVI LETSOKO
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skom’s inconsistency in supplying the necessary capacity for the country to realise its social and economic ideals has opened up the South African energy market. Advances in technology and infrastructure have seen renewable energy being punted as a sustainable option for market entrants looking to break the state-owned power company’s monopoly. The renewable energy space has long passed its infancy stages, but adoption still lags somewhat. Nevertheless, the green sector provides ample opportunities for aspiring entrepreneurs.
The South African Photovoltaic Industry Association (SAPVIA) has been instrumental in regulating the sector, creating operational benchmarks that demand adherence by new and already trading renewable energy companies. The organisation has assisted and credited some of the major players in this industry. Mark Willoughby, MD of One Energy Group, is excited about the commercial opportunities in green energy, but remains sceptical about what this means for the consumer, saying the industry is not immune to bogus suppliers. “To be avoided at all costs are the myriad
“THE OBJECTIVE IS FOR A FRANCHISEE TO BECOME A FULLY FLEDGED RENEWABLE ENERGY SPECIALIST.” – MARK WILLOUGHBY, MD, ONE ENERGY GROUP
‘hit-and-run’ backyard importers who on the face of it seem to offer cheaper products. End-users purchase these products at their peril,” he says. “There are several reliable suppliers who import products to sell on a wholesale basis directly to installers,” continues Willoughby. “When evaluating a supplier, assess the quality of their products. Check the pricing and track record in honouring warranty claims. Familiarise yourself with their after-sales support system.”
GREEN SHOOTS One Energy Group has a structured franchising model that guides entrepreneurs through the various stages of setting up a renewable energy franchise. Before approving a franchising request, Willoughby looks for technical knowledge. He believes it’s important for franchisees to understand the specifications and the dynamics of the solutions on offer. He also says franchisees stand a better chance of being approved if they can showcase their selling skills in a way that translates the technical features of solutions on offer into answers to the customers’ most immediate questions. “The objective is for a franchisee to become a fully fledged renewable energy specialist who can provide a client with a complete blueprint to take them gradually yet substantially off the grid by making successive investments in recommended and compatible technology over time.”
DRIVING RENEWABLE ENERGY ADOPTION
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t is compulsory for entrepreneurs in the renewable energy space to possess a particular set of technical and trading skills. The South African Renewable Energy Business Incubator (SAREBI) is dedicated to mentoring energy entrepreneurs to comply fully with the industry’s demands. Sarebi general manager Helmut Hertzog says that many entrepreneurs enter this sector with the misconception that an understanding of business is all they need. In most cases, they are wrong – the renewable energy space is a highly technical and technological one that requires a broader
understanding of the renewable energy value chain to achieve success. “Entrepreneurs need to be decisive about the role they are looking to take up, be it manufacturing, assembly or installations,” says Hertzog. “They also need clarity on the markets they are targeting. Working with a franchise helps with marketing and market entry. It is not easy to do it alone. This is a highly competitive industry.” One of the obstacles facing renewable energy franchisees is that the end-users often don’t understand energy, adds Hertzog. Customers don’t buy energy solutions because they preserve the planet;
‘WORKING WITH A FRANCHISE HELPS WITH MARKETING AND MARKET ENTRY. IT IS NOT EASY TO DO IT ALONE. THIS IS A HIGHLY COMPETITIVE INDUSTRY.” – HELMUT HERTZOG,
GENERAL MANAGER, SAREBI
they buy solutions that guarantee them lesser costs over the long-term. It’s up to franchise owners to educate them.
SOUTH AFRICA’S RENEWABLE ENERGY MARKET The size of the renewable energy market in South Africa is expected to grow substantially over the next decade. According to government’s proposed draft amendments to the electricity regulations on new generation capacity tabled in 2020, financially stabilised municipalities will have the authority to source energy supplies from independent power producers. This means that they will have the option of generating their own power or source it from small scale suppliers independent of Eskom.
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ADAPTING TO CHANGE
Valuable lessons from the Covid-19 pandemic Facing a global pandemic not only pulls communities together, it teaches us valuable business and life skills. Standard Bank’s Head of Franchising, André Beck, shares his insights into what we can learn from Covid-19 to build better businesses for the future. The Covid-19 pandemic has been devastating to many businesses in the hardest hit sectors. In your view, will there be any positive outcomes?
customer expectations? A high adaptability quotient is critical to sustainability and success in a post-Covid-19 world.
Business owners have seen that their businesses do not survive in isolation. They are inextricably linked to the economy, their communities, their employees and each other, which means we need to work together, support each other and do what’s best for the entire community – not just individual balance sheets. Many businesses have always operated like this, but I believe there will be an uptick in overall reasonable and ethical practices, particularly towards employees, as a result of what we have collectively experienced in 2020.
What are the biggest sector trends you have noticed as a result of the pandemic?
How has the pandemic created new cultures within businesses? Franchisees used to wait for their franchise managers to visit them before addressing challenges or concerns, but these are now handled immediately. We are closer than ever to our clients for the same reason. We can log onto our systems and instantly reach colleagues, clients or other members of our networks, and it’s not only made us more empathetic and collaborative, but we’re finding incredible solutions to the problems we’re collectively facing as a result of the pandemic.
What is the single most important quality a business should embrace right now? Adaptability. There are many aspects businesses should be focusing on, but they all come down to this trait: How quickly can you adapt your business model, products and service offerings based on new insights, data, operating conditions and
There has been a fundamental shift in every industry. For example, many quick service restaurants are opening ‘dark kitchens’. These are also known as ghost kitchens, cloud kitchens or virtual kitchens. They refer to central kitchens where orders are placed, cooked and then collected for delivery. The result is a larger focus on deliveries instead of customers coming into stores, smaller stores and lower rentals – all while catering to new customer demands. There has also been a significant uptake in e-commerce and online retail solutions. This covers 3D virtual tours and selections that support customer experiences through virtual platforms, as well as partnering with delivery companies to offer online ordering and deliveries. We’ve also seen brands investing in apps that support overall customer experiences. For example, imagine an app that allows a customer to order a cappuccino from their car while filling up with fuel, ensuring limited in-person contact. Our clients are increasingly investigating our contactless payment solutions, which highlights this shift in consumer behaviour.
Business owners have realised that it’s more important than ever to know who their customers are and what they need. How does this impact on-theground decisions for franchisees? Every day businesses generate hundreds – even thousands –
CUSTOMER SERVICE
of data points relating to their customers. The big question is whether you are using this data to understand who your customers are, how they are interacting with your brand, and what they need from you? For example, the data that we collect and share through our CustomerViewTM solution is invaluable. Our clients can see anonymised data on who prefers in-store visits versus online ordering and shopping by their demographics, including which times of the day different demographics engage with the brand. This can help you create specific specials or offerings that speak directly to each demographic in a way that aligns with their preferences, delivering an overall better consumer experience and building long-term brand loyalty. The insights that can be drawn from the right data are endless and extremely valuable and they begin with this simple lesson: know your customer.
What are the key learnings for franchisees as we adjust to a Covid-19 world? When I sit down with our clients, the first question I always ask is: “Why did you invest your money into this business?” It’s important for me to understand each of our clients’ values and motivations, but I also believe that franchisees should be revisiting their passions as well. We’ve all had our heads down trying to get through this pandemic. We now need to look up, step back and remember why we do this so that we can build a better future.
“We needed to set up a new account to purchase a Sorbet franchise business and Standard Bank assisted us throughout the entire process, from a business loan to business bank accounts and through to speed points for the store. We chose Standard Bank because of the value they saw in the business we wanted to acquire. They understood our strategy and were willing to put together a portfolio of products to ensure we could make our dream a reality. Even in very turbulent and uncertain times, Standard Bank worked with us to best navigate the situation and ensure we could keep the deal alive despite the challenges brought about by Covid-19. We are very grateful to Standard Bank for all their assistance. They understand the needs from an entrepreneur’s point of view and believe in the value small businesses can add to our economy. Thanks to Standard Bank we have a business that provides a livelihood for more than 28 people today. By understanding not just banking but also the business, Standard Bank became more than just a partner in the capital market, but our business partner.” – Craig & Katherine Sydenham Skin Guardian & Sorbet Beauty Salon Franchisee
CUSTOMER SUPPORT
How we’re supporting our customers during Covid-19 •
We’ve leveraged our strong balance sheet to support our clients
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We’ve offered financing solutions and extended payment terms
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We’ve worked closely with clients to implement innovative solutions that address the need for contactless payments, e-commerce platforms and increased insights into customer demographics and spending patterns
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Our team has been available to ensure our clients receive the support, advice and access to our network when they need it most.
For more information on how we can assist you to achieve your franchise ambitions, visit our website at www.standardbank.co.za
