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The British Franchise Association
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At this point, your franchise is more or less on track. You’ve established your business plan, attained financial backing, set up the legal documentation, and maybe even located your pilot franchisees. Before things really get going, you might want to take a moment to consider joining the British Franchise Association. |
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What Is It?
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| The British Franchise Association website declares the British Franchise Association to be “the voluntary, self-regulating governing body for franchising.” Members of the BFA voluntarily conduct themselves according to an established code of conduct governing their actions. The BFA is not an official government or regulatory body; it is a group of franchisors who believe in honest and fair business tactics. |
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Why Join?
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There are many reasons to join the British Franchise Association, but the primary reason is credibility. The BFA is known for its impartial promotion of members who meet their stringent code of conduct. Franchisees searching for a reliable franchise, then, will almost certainly stumble across the BFA. Holding BFA membership means that you are a credible franchise with a drive to honest and fair business, and that goes a long way with potential franchisees.
The British Franchising Association can also offer you assistance as you prepare for your franchise start-up. Some of the services they offer include: |
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| Franchisee or franchisor seminars |
| Free evening programes |
| Workshops |
| Professional advice |
| Franchise-related bookstore |
| Franchise exhibitions |
| Listing on their website (although they do not promote one franchise above another or allow advertising on their site) |
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Membership Criteria
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There are two types of memberships in the BFA: associate and full. In order to be a full member, you must have a proven record of franchising success; so most people starting out will be associate members. Even associate members need a track record of one year, however, so you might want to consider a provisional membership. In order to have a provisional membership, you must demonstrate that you are working on becoming a franchise whose goals match with those of the
BFA.
The BFA has four primary goals all members must adhere to. A BFA franchise must be: |
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| Viable: You must be able to demonstrate that you have a successful product that will work in a franchised situation. This step should be easy, provided you’ve followed the instructions above. |
| Transferable: You must be able to pass on your knowledge, business structure, operating system, and all related information to a franchisee. If you can’t do this, then no matter how viable your franchise is, your franchisee is not likely to succeed. |
| Ethical: All BFA member franchise agreements are formally assessed according to the European Code of Ethics for Franchising. Only those whose franchise agreements meet with the standards laid out in that code will be accepted for membership. |
| Disclosed: BFA members cannot hide critical information about their companies, especially from potential investors. This shouldn’t be a problem as long as you crafted that nondisclosure document we discussed earlier and have it ready to go! |
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Membership and Fees
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BFA membership is not cheap, but it may be worth it, especially if you are hoping to reach a large pool of potential investors. Remember, there are a lot of franchises out there. You need to take every step you can to stand out from the crowd. A membership in the British Franchise Association is good PR, and it gives you something positive to put in your sales prospectus and franchise information package.
Membership fees and categories are as follows: |
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Full Members
Your goal is to become a full member. Full members must show an ethical franchise agreement and be able to demonstrate that they have proven their business concept over an extended period of time in a variety of
locations.
Cost of an Annual Subscription: £2,400.00 + vat prompt payment (£2,820.00 with vat)
Associate Members
An associate member basically has the same requirements as a full member; however, they will not have been in business as long and will not have as extensive a franchising record.
Cost of an Annual Subscription: £2,300.00 + vat prompt payment (£2,702.50 with vat)
Provisional Listing
If you’re reading this book, you probably fit in here. Provisional listings are for companies new to franchising. A provisional listing shows that you are in compliance with the BFA’s primary goals: you hold a viable business, an ethical contract, you are willing to transfer your knowledge, and you’ve disclosed critical information. All a provisional membership really means is that you haven’t had time to prove your success yet.
Cost of an Annual Subscription: £1,615.00 + vat prompt payment (£1,897.63 with vat)
To apply for provisional membership, you need: |
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| A BFA application form |
| A bank reference form |
| A copy of your current franchise agreement |
| A copy of your master license agreement (if applicable) |
| Your company’s latest audited accounts |
| A copy of your current prospectus/promotional material |
| A copy of the financial projections you offer to prospective franchisees (if any) and supporting base financial data |
| Any other documentation, such as operations manuals, training schedule, or anything else relevant to your franchise |
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| Can you be a successful franchisor without a BFA membership? Of course. The British Franchise Association is not a legal governing body; it has no real power, and you are not in any way required to apply for membership. However, if you’re just starting out and are looking to establish yourself as an ethical, viable franchise, the BFA can be an invaluable resource in getting your name to the world at large. If you are interested, the best thing to do is check out the BFA website at
www.thebfa.org. |
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How To Franchise Your Business Info Guide |
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Claim your FREE franchising consultation now
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Request a FREE 'Opportunity Analysis' with one of our experienced
business franchise consultants. During the analysis Franchise My Business will uncover the opportunities that exist within your business.
The detailed report will contain: |
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| Suitability for franchising |
| What you can charge for your franchise |
| The process explained |
| List changes needed to the business to enable successful franchising |
| Market analysis |
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No sales pitch - just good honest advice |
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Call 0845 020 4368 to book your free consultation |
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Our Fees
As you have seen franchising your business will generate a lot of additional cash. This option is also the quickest way to build a very profitable and high value business.
HMA Business Growth Solutions will complete 95% of the work involved in franchising the business. We will cover all legal costs (approx £5K), provide all the marketing material needed and provide a complete plan to recruit franchisees. We will also provide ongoing support and changes to the franchise system as required for a period of three years.
* £9995 + vat payable in 4 monthly payments (£2498.25 + VAT per
month).
This is a heavily discounted rate - we prefer to make the mass of
our fee by linking our fees to your success.
In addition we will: |
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| Advertise the franchise |
| Qualify the potential franchisees |
| Meet all potential franchisees |
| Any franchisees that we feel are suitable will be invited to
meet with you. |
| Close the sale and setup all legal contracts. |
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In return for handling this process and incurring many costs, our
fee will be 20% of the franchise fee. This fee will only be
payable on success.
Isn’t that refreshing - A consultancy company that links payment
to performance.
The exciting part of our service is that it won't cost you a
fortune. We mainly work by charging a small project fee and
accepting a minor percentage of the increased profits that we
create for you. |
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| We like to share in the extra profits we make for you. |
| This makes us highly motivated to achieve major increases in
profit. |
| Plus—we guarantee that your franchise will be a success or
we’ll work for you for absolutely nothing until it is or we will
refund your investment.
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| We are not like any other consultancy company you've ever come across. |
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Remember - if we can’t increase your profits dramatically
We’ll work for you for nothing until we do.
The Business Franchising Specialists
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