“All exhibitors have undergone a thoroughreview against ethical franchising standards in order to be allowed to exhibit at the bfa-supported Franchise Exhibitions”
S
o you are considering self- employment through franchising and are carrying out your research in order to select the right opportunity. Congratulations
– by reading this you are already off to a good start! Franchisees who take the time to complete their due diligence prior to joining a brand can significantly increase their chances of success. There are many resources available to assist you in making this decision, both free online and paid-for courses and seminars, many of which are available through the British Franchise Association’s (bfa) new website:
www.thebfa.org. Another great place to learn more about franchising and meet some key brands that are either current members or have undergone the bfa’s third-party accreditation process is at a bfa-supported Franchise Exhibition. With more exhibitions popping up
around the country, what is it that makes the bfa-supported franchise exhibitions stand out? The bfa was established in 1977 to separate out the poor-quality franchises from the good. This is achieved via a rigorous accreditation process before any brand is able to join the bfa. As the non-profit, self-regulated body for ethical franchising in the UK, it also provides impartial guidance to prospective
franchisees who are thinking about taking the leap into business ownership through business format franchising.
It can be daunting to decide which of the many brands out there is worthy of your investment, particularly financially. To help you prepare for making this decision, there are many questions you can and should ask while carrying out your due diligence. Asking plenty of relevant questions, requesting evidence of financial projections and seeking legal advice on the franchise agreement will help you to build a bigger picture of the franchisor’s company and how it works.
A franchisor displaying the bfa kitemark for ethical franchising is a good sign when looking at potential investments since they have been scrutinised by an unbiased and standards-based third party organisation. Members of the bfa are also able to access the wide range of best-practice sharing events and resources for ethical franchising that the association provides. Not all brands at the bfa-supported Franchise Exhibitions are already members of the bfa, but all will have undergone a review against ethical franchising standards at the very minimum in order to be allowed to exhibit. Membership of the bfa is voluntary; any brand that is a member has agreed to periodic reaccreditation and to abide by the bfa’s rules and guidelines
for ethical franchising in order to join the bfa community and display its logo. The Franchise Exhibitions are the UK’s only bfa-supported exhibitions.
The bfa evaluates key factors that indicate whether a franchise is profitable, ethical and fair to its franchisees. These include the franchise agreement, the support and training offered to the franchisee network, evidence of its financial projections, full and fair disclosure of relevant information to prospective franchisees, promotional materials and, finally, that it can prove financial sustainability in order to support the network.
Due to the level of detail covered, not all brands pass bfa accreditation on their first try. However, their willingness to make changes to their operation to meet the bfa’s standards and their agreement to abide by the bfa’s ethics and rules is testament to their desire to be part of the ‘good’ franchising community if they pass in the future. Just because a brand is not a bfa member does not necessarily mean that it is not an ethical franchisor. Whether or not a brand you are considering joining is a member, the bfa always encourages prospective franchisees to carry out the same thorough research before handing over any money or signing the legally binding franchise agreement.
March 2018 |
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