Issue No.208 – October 2022 : Rabiul Awwal 1444
THE FRANCHISE MODEL
Franchising is not a new concept, but a progression from as far back as feudal times. Today, franchising occurs in a multitude of industries. Franchisors (companies granting rights to their franchisee businesses) and franchisees (independent businessmen utilising franchisor services) are in partnership in industries as diverse as retail stores, hotels, automotive repair & service centres, restaurants & take-away foods, filling stations, real estate agencies, boutiques, hairdressing salons, mobile phone service centres, computer stores, cleaning & security services, gymnasiums etc.
Franchising offers both parties benefits in that the Franchisor is able to raise capital for expansion without giving up equity whilst getting the service of the franchisee who in return is able to benefit from the franchisor’s brand, product, merchandising marks, advertising, expertise, buying power etc.
Franchising has proven itself as a successful business model with over 811 franchise systems supporting 48000 franchise outlets in our country with an estimated turnover of R721 billion, equivalent to 15 % of the total country’s GDP and employs close to 400,000 people.
COMPATIBILITY WITH ISLAMIC VALUES
This form and style of business, reliant on explicit disclosures, mutual agreements and co-operative management is in line with Islamic values. Islam accords a very high status to the merchant because of the leadership role he plays in society in food & essentials service delivery, wealth & job creation, empowerment and Da’wah. The Noble Quran states, “O you who believe! Be conscious of Allah and be among the truthful… (Surah 9 – Verse 119). The Prophet Muhammad’s (peace be upon him) life was one of meticulous honesty and scrupulous dealings on both a personal and business level to the extent that even his enemies would trust him. Hence, he was known as, “the Trustworthy” and “the Truthful one”.
Muslims in South Africa have readily embraced this model with the number of players far exceeding the demographic profile of two percent of the population in sectors such as fast food, service station and retail outlets.
FAST FOOD FOR FAST PEOPLE
Today, people are working longer hours than ever before. With smaller minimalist kitchens and combined incomes, the appeal of ordering instant and tasty meals delivered swiftly is a welcome relief.
The fast-food industry in keeping with the ideology of all things fast has capitalized on this need with innovations such as express drive-throughs, kerbside pick-ups, sophisticated preorder systems and home deliveries etc. There are an estimated 5,000 fast food stores in the country.
SANHA, as one of the leading global Halaal certifiers, has over the years collaborated with many global and local franchise brands. It has invaluable experience in the certification process of this sector and is the certifier of choice to most South African franchise brands. More franchise brands choose SANHA certification than any other. Click here to view:
SANHA’s certification of the fast food and restaurant industry is based on a stringent monitoring and auditing system which encompasses every link in the chain, beginning with the Franchisor who controls and dictates every aspect of the process to the franchisee at the end of the chain. The franchise company is required to make full disclosures and enter into an agreement with SANHA which binds the franchisor to a host of conditions inter alia:
- To ensure that all suppliers to the chain are Halaal approved;
- Not to introduce any new item to their offering without obtaining the express approval of SANHA;
- Halaal franchise options only be given to stores that have consistent daily authorized Muslim supervisory control.
Many franchise brands welcome these core requirements and monitoring systems as added value and reap the benefits. In choosing SANHA as their logical certifier of choice, they are secure in the knowledge that they are compliant to the highest standards of Halaal.
THE PREFERRED MARK OF HALAAL ASSURANCE BY MOST FRANCHISE BRANDS