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Establishing a franchise association is vital for promoting and protecting the franchising brand, sharing expertise, and setting industry standards. To create a successful association, you need a clear vision, a code of ethics, a constitution, defined objectives, a budget, and an action plan. Consider membership criteria, funding options, management structure, and various activities such as public relations, training, and lobbying. Learn from established organizations, like the British Franchise Association, which exemplifies best practices in governance and accreditation to support the franchise community.
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ESTABLISHING A FRANCHISE ASSOCIATION Brian Duckett brian@howarthfranchising.com
WHY HAVE AN ASSOCIATION? • To promote the “Franchising” brand • To protect the “Franchising” brand • To share “knowhow” and good practice • To set standards • To solve problems • To be a focal point for the franchise community
WHAT WILL YOU NEED? • Vision and Mission • Code of Ethics • Constitution • Objectives • Budget • Action Plan
THINGS TO CONSIDER • Membership Criteria - who can join? • Franchisors • Franchisees? • Lawyers, Consultants, Banks • Other Suppliers?
THINGS TO CONSIDER • Funding • Subscriptions – how much? • Sponsorship • Grants • Commercial activities
THINGS TO CONSIDER • Management • Paid secretariat • Volunteer members • Legal advisor • Accountant • Premises
THINGS TO CONSIDER • Activities • PR • Exhibitions • Website • Seminars • Training • Lobbying • Accreditation
THE BRITISH FRANCHISE ASSOCIATION • Founded by ten franchisors in 1976 • Now has 350 franchisors and 150 affiliates • Three grades of franchisor member • Strict accreditation criteria • No franchise-specific legislation • “Don’t sign without the BFA sign”
BFA ACCREDITATION • Management Team • Market Prospects • Franchisor Financial Commitment • Franchisee Financial Risk • Structure • Franchisee Recruitment Policy • Training and Support • Ethical Compliance • Track Record • Working with approved advisors
LESSONS FOR DEVELOPING MARKETS • Establish clear ethical guidelines • Establish clear legal structures • Educate government and the public • Get the banks involved • Establish the Association as “The Voice of Franchising in Kenya”