Caveat emptor: The British Franchise Association on what every prospective franchisee needs to know before they sign
Since you’re reading The Franchise Magazine, and, in particular this article, chances are you are considering buying a franchise. If so, that’s great news. We’re looking forward to welcoming you into an industry that generates £19.1billion a year and has had a failure rate of less than 6% for over 20 years. Done properly, it’s a wise choice.
However, now’s the time to take heed – not all franchises are created equal. In order to avoid business pitfalls, it’s essential you’re fully prepared. Carry out your due diligence and do your research: read up on what the experts have to say – including the following pages – it could save you a huge amount of time and money, so please, don’t skip it!
Who are the BFA?
The BFA (British Franchise Association) are the UK’s self-regulatory body for the franchising sector. Way back in 1977 some leading names in the franchise arena decided to form the association, to set the standards for modern franchising and differentiate themselves from less professional operations.
What do we do?
We work to promote ethical, professional franchising. We are guided by our Code of Ethics for Franchising that you can download from our website. This is the guide that all our standards come from and with which all accredited BFA Members must comply.
Our accreditation process
To become a member of the BFA, a franchisor must make sure every part of their operation complies with our Code of Ethics. Our membership and standards department do a deep dive into each application, auditing the entire business, from how the brand describes their franchise opportunity in their marketing (making sure they are not making false claims of profitability), to the amount of support they offer their franchisees, to the legality of their franchise agreement, and everything in between. We even review their financial statements to ensure their business is viable. No stone is left unturned in our quest to ensure we keep standards high and protect prospective franchisees like you.
Once and only once our team are entirely satisfied that the brand is in full compliance, will they issue membership. Membership is for five years at a time, after which they will be reaccredited, to ensure they are still fully compliant.
If at any time during the term of their membership we discover they are acting in a way that does not comply with the Code, we will investigate and, if we are not satisfied that they are willing or able to comply with the Code, then membership will be removed.
What does a brand being a member of the BFA mean to a potential franchisee?
Naturally, choosing a brand that is a member of the BFA is a great starting point for anyone looking to buy a franchise. Their systems, procedures, paperwork and finances have all been checked and found to meet our stringent criteria, so this should give you some peace of mind, however this is the starting point, not the end.
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