106
HOTtopic
PETER WILLIAMS
Peter began his career in franchising in
the 1980s with Dyno-Rod and formed
I
C
E
his own consultancy in 1990. He is a
Companion of the bfa in recognition of
his outstanding personal contribution to
A
D
V
the development of franchising in the UK
N
C
H
I
S
E
Happy to oblige
F
R
A
Franchise consultant Peter Williams investigates the mutual obligations in
any franchise relationship
A
STRIKING CHARACTERISTIC of UK franchising is the doubt, this is best practice, the positive effects of which are re ected in
extent of knowledge on the part of those exploring the the UK’s large and robust franchise industry. However, it is important
marketplace and seriously considering entering the industry to bear in mind the franchise relationship is not one-sided and entails
as franchisees. They are, without doubt, among the best informed mutual obligations that franchisees as well as franchisors have to take
audiences of their kind in the world and can be reckoned to have on board. In establishing a franchise development, a business format
undertaken a wealth of research by way of the British Franchise that trades successfully and produces a pro t is of the essence. In
Association, the British Franchise Exhibitions, the major banks, the order for franchisees to replicate this for their own bene t, it follows
pages of Business Franchise and others – all of which combine to that there must be speci c operating systems and procedures for them
enlighten enterprising people as to just what to implement and adhere to.
franchising can offer.
“It is important to bear in mind
Consequently, rather than simply making
I have to say this is all very different the franchise relationship is not suggestions to be put into practice or not at
from when I joined a major franchisor
one-sided and entails mutual
the discretion of franchisees (a formula for
in the 1980’s. In those far off days, the potential chaos and confusion), franchisors
word “franchise” often tended to be
obligations that franchisees as
will expect conformity as a contractual
misunderstood, sometimes even being well as franchisors have to take commitment which is made clear in the
viewed with suspicion. To a degree that was
on board”
franchise agreement. That is not to say
understandable, because then there were franchisees are discouraged from coming up
certain trading schemes purporting to be franchises when they were with new ideas. Far from it, they tend to be welcomed and there are
patently nothing of the sort. many examples of worthwhile developments that have been initiated
Today, the level of comprehension is such that franchisors really by franchisees.
need not dwell on explaining what franchising is all about, but However in most cases changes can be introduced only with
concentrate on describing their particular offering. In my experience, the approval of the franchisor whom, in the interests of universally
prospective franchisees certainly know the right questions to ask, high standards, has an overall responsibility
especially with regard to the continuing to communicate the best working
support role the franchisor will practices to the network as a whole. In
undertake. contemplating a particular opportunity,
Accordingly, recognising the therefore, it is essential to feel
importance of effective ongoing comfortable with all its aspects and be
back-up in building a successful prepared to enter into the team spirit
network, many franchisors that distinguishes a great many
have in place a valuable and ourishing franchises. �
meaningful package that
they unequivocally commit
to as part of their
obligations.
Without
February 2009
www.businessfranchise.com
BF106_HotTopicWilliams-_Feb09.indd 1 7/1/09 13:56:02
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