To be eligible to join the British Franchise Association, a business must demonstrate how they meet or exceed standards in the following key areas:
- Viable: The business to be franchised must be viable. Evidence will show that the product or service is saleable, and at a level of profit that will sustain a franchised network.
- Transferable: There is a means for the transfer of the know-how to a new operator at arm’s length, essential if the business is to be franchised.
- Ethical: The franchise is structured and operated in accordance with the ethical principles set out in the European Code of Ethics for Franchising, which covers matters of advertising, recruiting, selecting, and dealing with franchisees. The applicant’s franchise agreement is formally assessed.
- Disclosed: All information on the business that is material to the franchise proposition and contract is disclosed without ambiguity to prospective franchisees.