How To Franchise My Business 
Leading business franchise consultant provides free help and advice

Ethics, Ethics, Ethics

You may be wondering at this point what, precisely, the European Code of Ethics is and how it relates to your franchise documents. Well, obviously the best solution is to go off and find a copy of the code, but here is a brief summary of the ethical guidelines.

Fairness and Business

Under the code, franchisors must:

· Have demonstrated the viability of their franchise
· Have successfully operated at least one pilot franchise before beginning a network
· Legally own all trademarks and logos
· Provide ongoing support to franchisees

Marketing and Recruitment

Franchisors must:

· Make sure recruitments are not misleading
· Be objective in suggesting the potential earnings of the franchise
· Provide potential franchisees with a copy of the Code of Ethics
· Ensure that all contracts are fair and above board
· Do a reasonable amount of research and legwork to make sure the franchisee is a responsible person with adequate skills to handle the job

The Franchise Agreement

The franchise agreement must:

· Comply with national laws and ethics
· Protect both the franchisor and the franchisee, and be available in both contracting parties’ languages
· Clearly set forth responsibilities on both sides
· Contain, at the bare minimum:
- The franchisor’s rights 
- The franchisee’s rights
- The goods and services the franchisee will receive 
- The franchisor’s obligations 
- The franchisee’s obligations 
- The terms of payment 
- The duration of the agreement (must be long enough to allow for reasonable return of the franchisee’s investment) 
- The basis for any renewal of the agreement; 
- The terms for selling the franchise and whether the franchisor has the right to intervene in this situation 
- Information regarding the use of the company logo, trademark, etc. 
- The Franchisor's right to adapt the franchise system and change the system
- Provisions for termination of the agreement; 
- A clause where the franchisee is responsible for immediately surrendering all relevant materials and merchandise upon termination of the agreement

In general, the Code of Ethics is not a complicated document. The terms set out are terms most honest business people would instinctively abide by. However, it is well worth consulting the document when constructing your franchise. Sometimes even the most well meaning individual will miss something the Code of Ethics covers. This is also a document your lawyer should be fully aware of, and in preparing your franchise agreement, he should be making certain that it is in compliance with the code.

How To Franchise Your Business Info Guide

Wait!
Download our FREE  guide to franchising your business

Our step-by-step guide will show you how you can franchise your business 

You will also receive:

• 30 days of Unlimited support via email
• FREE training 
• FREE checklists

• FREE copies of our famous business books