|
The British Franchise Association
At this point, your franchise is more or less on track. You’ve established your business plan, attained financial backing, set up the legal documentation, and maybe even located your pilot franchisees. Before things really get going, you might want to take a moment to consider joining the British Franchise Association.
What Is It?
The British Franchise Association website declares the British Franchise Association to be “the voluntary, self-regulating governing body for franchising.” Members of the BFA voluntarily conduct themselves according to an established code of conduct governing their actions. The BFA is not an official government or regulatory body; it is a group of franchisors who believe in honest and fair business tactics.
Why Join?
There are many reasons to join the British Franchise Association, but the primary reason is credibility. The BFA is known for its impartial promotion of members who meet their stringent code of conduct. Franchisees searching for a reliable franchise, then, will almost certainly stumble across the BFA. Holding BFA membership means that you are a credible franchise with a drive to honest and fair business, and that goes a long way with potential franchisees.
The British Franchising Association can also offer you assistance as you prepare for your franchise start-up. Some of the services they offer include:
· Franchisee or franchisor seminars
· Free evening programmes
· Workshops
· Professional advice
· Franchise-related bookstore
· Franchise exhibitions
· Listing on their website (although they do not promote one franchise above another or allow advertising on their site)
Membership Criteria
There are two types of memberships in the BFA: associate and full. In order to be a full member, you must have a proven record of franchising success; so most people starting out will be associate members. Even associate members need a track record of one year, however, so you might want to consider a provisional membership. In order to have a provisional membership, you must demonstrate that you are working on becoming a franchise whose goals match with those of the BFA.
The BFA has four primary goals all members must adhere to. A BFA franchise must be:
· Viable: You must be able to demonstrate that you have a successful product that will work in a franchised situation. This step should be easy, provided you’ve followed the instructions above.
· Transferable: You must be able to pass on your knowledge, business structure, operating system, and all related information to a franchisee. If you can’t do this, then no matter how viable your franchise is, your franchisee is not likely to succeed.
· Ethical: All BFA member franchise agreements are formally assessed according to the European Code of Ethics for Franchising. Only those whose franchise agreements meet with the standards laid out in that code will be accepted for membership.
· Disclosed: BFA members cannot hide critical information about their companies, especially from potential investors. This shouldn’t be a problem as long as you crafted that nondisclosure document we discussed earlier and have it ready to go!
Membership and Fees
BFA membership is not cheap, but it may be worth it, especially if you are hoping to reach a large pool of potential investors. Remember, there are a lot of franchises out there. You need to take every step you can to stand out from the crowd. A membership in the British Franchise Association is good PR, and it gives you something positive to put in your sales prospectus and franchise information package.
Membership fees and categories are as follows:
Full Members
Your goal is to become a full member. Full members must show an ethical franchise agreement and be able to demonstrate that they have proven their business concept over an extended period of time in a variety of locations.
Cost of an Annual Subscription:
£2,400.00 + vat prompt payment (£2,820.00 with vat)
Associate Members
An associate member basically has the same requirements as a full member; however, they will not have been in business as long and will not have as extensive a franchising record.
Cost of an Annual Subscription:
£2,300.00 + vat prompt payment (£2,702.50 with vat)
Provisional Listing
If you’re reading this book, you probably fit in here. Provisional listings are for companies new to franchising. A provisional listing shows that you are in compliance with the BFA’s primary goals: you hold a viable business, an ethical contract, you are willing to transfer your knowledge, and you’ve disclosed critical information. All a provisional membership really means is that you haven’t had time to prove your success yet.
Cost of an Annual Subscription:
£1,615.00 + vat prompt payment (£1,897.63 with vat)
To apply for provisional membership, you need:
1. A BFA application form
2. A bank reference form
3. A copy of your current franchise agreement
4. A copy of your master license agreement (if applicable)
5. Your company’s latest audited accounts
6. A copy of your current prospectus/promotional material
7. A copy of the financial projections you offer to prospective franchisees (if any) and supporting base financial data
8. Any other documentation, such as operations manuals, training schedule, or anything else relevant to your franchise
Can you be a successful franchisor without a BFA membership? Of course. The British Franchise Association is not a legal governing body; it has no real power, and you are not in any way required to apply for membership. However, if you’re just starting out and are looking to establish yourself as an ethical, viable franchise, the BFA can be an invaluable resource in getting your name to the world at large. If you are interested, the best thing to do is check out the BFA website at
www.thebfa.org.
How
To Franchise Your Business Info Guide
|
