Seal of approval

Starting any new business is a risk. The risk can be reduced,however, if that new business is a franchise. This is because you are buying into an established and proven business model with comprehensive initial and ongoing training and support provided by a franchisor who knows the sector inside out and is invested in your success as a franchisee.

According to the bfa, around 91 per cent of all franchisees reported profitability over the last 12 months. There are many franchises available and, like buying into any operation, often a considerable investment is required. To protect this investment, therefore, and your future income, background research to establish the viability of the franchise is key. It is wise to select a franchise that is an established brand and one that can demonstrate a solid financial business case through the success of its franchisees.

The bfa is a good starting point as it publishes a list of full members with a proven trading and franchising record. These organisations are prepared to have their reputation examined by the bfa, and have an established network of franchisees.

From a personal point of view, I had been considering running my own business for a number of years but had had my fingers burnt before. Last year, I spent four months researching the market thoroughly. After my previous experience, I decided only to look at bfa members as they are established businesses and need to adhere to the bfa’s code of ethics.

I was impressed with the quality of the organisations I researched, as they seemed to care about the success of the franchisees. Although in business there are no guarantees, I would encourage anyone who is considering franchising to choose a bfa member as that organisation will have taken considered steps to demonstrate their commitment to their network of franchisees.

The bfa was formed in 1977 to act in the interests of the industry as a whole and it assesses franchising companies and grants accreditation to those that meet its criteria for: business structure, terms of the contract between franchisor and franchisee, testing of the system and success as a franchise.

The bfa is the voice of ethical franchising in the UK and, at the same time, it is the trade association for those who pass accreditation as well as the educator to the many potential individuals and businesses that consider
franchising.

As there is no franchise specific trading legislation, the is a valuable role in this growing industry. The organisation describes itself as a ‘watchdog for standards’ and publishes a guide to the code of ethics in franchising to help ensure best practice within the franchise industry as a whole and bfa members are required to adhere to this code.

The franchising industry offers exciting opportunities to run established businesses with a proven business model. However, whenever a significant investment is required and your future is at stake it is critical to research all avenues thoroughly and the British Franchise Association is an excellent
place to start.

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