Expert advises on franchise business pitfalls

Entrepreneurs interested in franchising have been advised to evaluate the strengths and weaknesses of the franchisor and the industry in which it operates in.

Giving a presentation at the Franchise Expo Botswana held in Gaborone last week, Kurt Illetschko of the Franchise Association of South Africa (FASA), said although franchising is regarded as a safe and potentially profitable business, it also has its own downsides.

Franchising is described as a long-term cooperative relationship between two entities, a franchisor and one or more franchisees, that is based on an agreement in which the franchisor provides a licensed privilege to the franchisee to do business.

Editor's Comment
Botswana at a critical juncture

While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...

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