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Tackling township business – a market for growth and development

Tackling township business – a market for growth and development

By Sasha-Lee de Bod

Franchises and independent businesses are competing and operating in highly competitive and in some instances saturated markets.  Business owners are now looking at alternative means of market expansion and ways of revitalizing the economy to address poverty, inequality and unemployment.

How tax burdens can be reduced for franchisees

How tax burdens can be reduced for franchisees

By Andre van Wyk

In November 2017 the Tax Court found in favour of a franchisee which could reduce the tax burden on many franchisees.

Two main principles in tax law

The two main principles in tax law are:

 

  1. All income received or accrued is taxable (subject to certain exceptions); and
  2. Only expenses already incurred in the production of taxable income is deductible from that income.

Tax deductibility of Initial Franchise Fees

Tax deductibility of Initial Franchise Fees

By Andre van Wyk

In the past there was uncertainty if initial franchise fees could be deducted from the taxable income of a franchisee. This is a large cash outlay for a new franchise and not getting the tax benefit would be detrimental to a new franchisee. SARS have recently made a ruling which has clarified the deduction of an initial franchise fee in favour of franchisees.

Four factors that drive a franchise network’s success

Four factors that drive a franchise network’s success

By Sasha-Lee de Bod

Penny from the Big Bang Theory was informed on numerous occasions, over a period of time that: “Your ‘check engine’ light is on”. Her response evolved from “Mm-hmm”, “yeah it’s okay” to “yeah, I gotta put a sticker over that”.  In our experience, many franchisors fail to perceive, recognise and address real problems that could ultimately reduce the success of the franchise network as a whole.

12 Mistakes franchisors make

12 Mistakes franchisors make

By Eric Parker and Sasha-Lee de Bod

In these tough economic times, franchising is the solution to support small business people.  According to the Franchise Association of South Africa August 2017 survey statistics the estimated turnover for the franchise market is R587 billion Rand, which is 13,3% of the South African GDP. In total, some 20 000 people are employed by franchisors, while 323 592 are employed by franchisees.