Answers

Q: When franchisors join the bfa, what criteria must they fulfil before they are awarded any level of membership?

Brian Smart: A: The core tests of a franchised business concern its financial viability, its preparedness to franchise and its record of actual franchising, the terms of the franchise agreement offered and the extent and realism of the claims made about the business in the documents put in front of prospective franchisees.

Of course track record is one of the strongest measures of the strength of a franchised business, but that should not prevent new businesses from entering the franchise arena and neither should it stop the BFA from accrediting new franchised businesses on the basis of their originating business and preparations for franchising.

Hence our "Provisional List" where we judge applicants on the basis of the realities of the originating business and the reflection of that reality in the offer documents together with a review of their franchise agreement and references from the franchise professionals who have been involved.

Generally speaking, the newer the business the higher the level of risk and the less certain the outcome of any due diligence procedures however sophisticated. That is the reality of any business endeavour and a reality the Association is at great pains to make clear in its guidance to prospective franchisees. Hence our deliberate title for our new franchisor category - the Provisional List.

Having said that, the reality is also that there is an originating business not just a pipe dream, thee is a franchise agreement that meets the requirements of the European Code of Ethics and there are offer documents that bear a sensible relationship to the reality of the business. That's more than enough reason to start any research for your future franchise with the BFA.