Q: Should I only join a franchise network that is a member of the British Franchise Association?
May 19 2006
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Franchisors that have joined the bfa have been accredited to do so and must adhere to their ethical code. The claims made by members of the bfa have to be substantiated, such as potential earnings figures. The legal agreement would have been assessed to ensure that at that moment in time it met their guidelines. As a result, the risks associated with joining a bfa member franchise are arguably much less than other unregulated franchises. However, that's not to say that non-bfa members will automatically be less well run or less professional franchise businesses, just that they might not have quite the same financial transparency and reliability because they haven't been through the same rigorous testing as bfa members.
However, the bfa assessment of its members is much like the driving test. In the same way as a driver can pass a test and then break the law, a franchisor can amend the legal agreement or structure very soon after becoming a member. For that reason a prospective franchisee must ensure they take suitable (ideally legal) advice at the time they purchase a franchise.
It should also be remembered that there are different levels of bfa membership. Franchisors at the Provisional level, for example, are only just starting out on their franchise journey and learning and adapting as they go. If you join a franchise that's a Provisional member, you are likely to find the business model is less mature and tested than that of a Full member.
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