Hamilton Pratt

The British Franchise Association

The British Franchise Association was established in the late 1970’s to promote franchising in this country.  This organisation is now based at Henley-on-Thames (see Appendix for address) where a full time director and other staff are based.  Its aim remains the promotion of ethical  franchising by:-

(a) Publications.  The BFA produces an information pack which provides advice on buying a franchise and includes a list of BFA members.   The BFA also provides franchisor work books which contain information for companies wishing to expand their business through franchising.
(b)  Exhibitions.  The principal franchise exhibitions are organised in London and Birmingham at which franchisors and advisors take stands, although franchise exhibitions are held elsewhere as well.
(c)  Encouraging Membership of the British Franchise Association.  There are three categories of membership.

    • a full member,
    • an associate member for companies who are developing a franchise, and
    • affiliate membership for lawyers, accountants, bankers and franchise consultants.

In addition “provisional listing” is available for those franchisors who are at the early stage of their franchise development.

An applicant for membership must complete an application form and disclosure questionnaire which remains confidential to the BFA.  A franchisor applying for membership must demonstrate that:-

  1. the business  itself  is viable.  The production of  24  months’  recent audited  accounts will be required including trading accounts, which show that the business is  capable  of  being run at a  profit  that  will  support  a franchised network;
  2. the operating units in the business can be successfully replicated.   The production of 12 months’ recent audited accounts is required for a managed arm's-length pilot franchise, or a fully-fledged pilot franchise.   These accounts must show a trading performance at least in line with the business plan set for the pilot franchise;
  3. the contractual terms to be offered to prospective franchisees comply with the  Association’s ethical requirements.  A copy of the then current agreement and any changes thereto should be lodged with the Association;
  4. the offer documents to be given to prospective franchisees present a full and realistic  picture  of  the franchise proposition.  A copy of the then current offer documents and any changes thereto should be lodged with the Association;
  5. the franchise network has developed to a viable number of franchised outlets.  Continuity and longevity are key characteristics. In the case of an application for full membership financial records should be provided to show that the franchised network is stable and profitable.