Franchisee Administrative Support
FRANCHISEE ADMINISTRATIVE SUPPORT
Sustainable franchisee trade is the ultimate deliverable required to demonstrate SA Franchise Warehouse's value and represents the fourth link of the SA Franchise Warehouse service chain. Franchisee sustainability, apart from its dependence on the maturity of the business system, relies on zero tolerance on financial and administrative compliance in order to facilitate accurate reporting and operational adjustments if need be. SAFW provides a range of accounting, HR and system related services in order to promote the required level of compliance and to adhere to the conditions of lending and reporting requirements of funders.
The extent and cost of the involvement of SA Franchise Warehouse will be determined by factors such as;
- The inherent level of complication of the business system
- The maturity of the business system and current franchisee network
- The current development and operational support structure of the franchisor
- The strategy of the franchisor relating to the in-or-outsourcing of certain franchisee support disciplines
All administrative franchisee support services, inclusive of training interventions, are ultimately intended to support the existing business system of the franchisor in order to optimise the sustainability of the franchisee.
Where a service level agreement exist between SAFW and the franchisee, the franchisor needs to acknowledge the existence of such an agreement and participate and cooperate with both parties in the practical execution. Although the franchisor is not a party to the service level agreement, the services rendered by SAFW to the franchisee theoretically sits in the domain of the franchisors intellectual property.
Administration is generally not the first love of franchisees. Implementation and subsequent compliance relating to financial procedure and control can become very taxing if induction and initial training of franchisees is not structured and effective.
BUSINESS MANAGEMENT TRAINING
SA Franchise Warehouse hosts a Business Management Workshop aimed at induction “green” franchisees into the basics of small business management. The course content is “business management” generic and does not overlap with operational and technical training the franchisor would provide to the franchisee.
The course is presented on a monthly basis from a Monday to a Friday around the middle of each month and is charged at R9 900,00 per candidate excluding VAT.
The current training calendar and a summary of the course content is available on request.
FINANCIAL COMPLIANCE MONITORING AND ACCOUNTING SUPPORT
These are key services rendered enabling accurate reporting on the financial performance and state of the business. Monthly income statement reporting only is not adequate for reporting to the funder for the purpose of managing risk and needs to include the balance sheet. The bouquet of accounting services include monthly balance sheet verification which imply creditor reconciliations, SARS compliance and accruals of primary running expense items in order to ensure an accurate and comparable income statement and reporting against budget.
Accounting fees charged monthly by SAFW is higher as a result of work required but includes regulation year end work and drafting of Annual Financial Statements no later than 90 days post year end. Fees are charged according to a matrix and will be quoted prior to engagement.