Is there a national franchising association? Is membership required? If not, is membership commercially advisable? What are the additional obligations of the national franchising association?
Franchise & Licensing
As far as we are aware of, there is no Franchising Association established in Angola.
The primary franchising association in Canada is the Canadian Franchise Association (CFA). Membership in the CFA is voluntary and is open to both franchisors and franchisees. Membership carries with it an obligation to follow the CFA’s code of ethics, which includes an obligation on franchisors to provide prospective franchisees with full and accurate written disclosure of all material facts about the franchise system prior to executing a binding agreement relating to the award of the franchise. This obligation applies to all franchisor members, including those operating in provinces that do not (yet) have franchise-specific legislation in place.
There is no national franchising association. However, the Santiago Chamber of Commerce runs the Comité de Franquicias (Franchise Committee), the purpose of which is contributing to the growth and widespread of the franchise industry based on investors’ trust as well as on good business practices. Also, the Comité de Franquicias aims at being the point of reference for the implementation of the franchising business model in Chile, contributing with value and growth opportunities to different interest groups.
Yes, in Denmark the national franchising association is named "Franchise Danmark", which is an interest group for Danish companies involved in franchising. Franchise Danmark has issued a code of ethics, which is based on the European Code of Ethics for Franchising adopted by the European Franchise Federation. Franchise Danmark works towards ensuring that franchising is conducted in accordance with the code of ethics in Denmark.
Membership is not required, but may be commercially advisable to franchisors, franchisees as well as consultancies providing counselling and other services to franchisors and franchisees.
Franchisors with a membership in Franchise Danmark are required to operate a franchise system, which is compliant with Danish law and the code of ethics.
There is a non-governmental organization called Azerbaijan Franchising Center (AFC) in Azerbaijan. AFC is engaged with commercial activities regarding franchising issues in Azerbaijan. Membership in the AFC is required. Members are divided into 4 categories.
A category - The world-famous franchising brand in Azerbaijan can become members.
B category - Members of the world-famous brands who want to show franchise in Azerbaijan. After the first franchising is formed in Azerbaijan, the members in category B will automatically belong to category A.
C category - Successful domestic franchises in Azerbaijan.
D category - Entrepreneurs who want to invest in franchise projects in Azerbaijan
In Egypt, there is a non-governmental and non-profit organisation named “Egyptian Franchise Development Association “EFDA” which is the only national franchise association which represents and serves the franchise industry in Egypt. EFDA is a member of the World Franchise Counsel “WFC”. In order to obtain the benefits provided by the EFDA, a membership is required.
The EFDA’s Objectives are; increasing the awareness of the "franchise form" of doing business, develop the technical know-how of franchising among local franchisors, provide a database of the franchise industry parties and liaise between all stakeholders in the franchise industry i.e. financial institutions, governmental institutions, franchisors, and potential investors, match-make franchisors with potential investors from a local and international stand point.
EFDA also develop workshops and seminars tailored to meet the needs of the franchise industry stakeholder, hold the annual Franchise Conference held in parallel with MIFE attended by renowned world speakers in the franchise field, hold the annual Middle East & North Africa International Franchise Exhibition (MIFE), publish the annual "Franchise Egypt" magazine Offer consultancy services.
The FFF is the principle franchising association, but membership is not mandatory.
Membership is advisable, as it provides training on franchising in France, and through its network representing 45% of French franchises, serves as an interface between public authorities, network creators, entrepreneurs and investors.
The Franchising Association of Greece was established in 1997. Membership is not compulsory and it currently numbers 30 members. The members must abide by the rules of the Association, e.g. The Code of Ethics.
The Mexican Franchise Association (AMF) is a private entity which main purpose is the promotion and development of franchising in Mexico. It is composed mainly by Mexican franchisors and franchisees, but the most relevant international franchise systems are not members of the AMF.
There is no legal obligation to be affiliated with the AMF and affiliation therewith does not necessarily offer any relevant benefits.
The Lebanese Franchise Association (LFA), a private organization, was established in 2006 in response to the needs of a fast-growing franchise industry, with the mission to develop franchising in Lebanon, and to promote Lebanese franchises worldwide.
Joining the Lebanese Franchise Association is not mandatory; however, it is commercially advisable as it helps in promoting the Lebanese franchise through organizing international exhibitions.
Joining the Lebanese Franchise Association involves signing and adhering to its code of ethics.
Yes, e.g. China Chain Store & Franchise Association (CCFA). Yes, membership is required and online application need to be approved. CCFA shall publish the industry standards (e.g. specifications/economic/management standard) based on its market analysis and investigation, make industry regulations and guidelines for the specific industry, update the association journals, websites and books for members, and conduct various industry related activities, etc.
In Peru, there is a national franchise association, the Peruvian Chamber of Franchises, which is for franchisors and master franchisees, an added value tool, where it is possible to find information about franchising companies, franchise consultants, training courses, events and information about franchises.
In this regard, membership is not required, but commercially recommended, since its objective is to ensure the interests of the Franchise Industry in Peru, offering its associates services and benefits that raise their quality standards and reduce costs, through participation in various government and private forums, as well as the organization and development of events.
Currently, there are three national franchising associations in the Philippines, namely, the Philippine Franchise Association (“PFA”), the Filipino International Franchise Association (“FIFA”), and the Association of the Filipino Franchisers, Inc. (“AFFI”). These organizations are self-regulating and membership is wholly voluntary.
Except for AFFI which also admits non-franchising entrepreneurs, the PFA and FIFA have internal regulations akin to a code of ethics or fair franchising standards that compel their respective franchisor-members to fully and timely disclose material investment information to prospective franchisees.
Membership may be advisable due to benefits resulting from the organizations’ reputation, gaining access to a network of prospective clients, suppliers, and business enablers, securing preferential intra-association terms, and sharing of best practices. This is especially true in view of Bureau Order No. 10-24 which advises a franchisee to secure from a franchisor a certification that the latter is a member in good standing of a franchisor association.
New Zealand has the Franchise Association of New Zealand (FANZ). Membership is voluntary but good franchising practice requires a franchisor to join the FANZ. The FANZ has a Code of Practice and Code of Ethics which are accepted throughout. If any franchisor wants to join then they must meet the membership criteria in force at the particular time.
A few national franchise and licensing associations operate in Russia. While membership is not required, it may, up to a certain extent, be commercially advisable.
Established back in 1997, the Russian Franchise Association is a local non-profit public organisation which helps its members to promote franchising activities in Russia. Although the Russian Franchise Association has no regulatory power, it may provide useful practical advice and guidelines on doing business through franchising. The same is applicable for Licensing Executive Society (LES) Russia that is in charge of promoting IP licensing on the local level.
There are no mandatory national franchising association in Norway, so no membership is required. As of now (2019) there is no active franchising association in Norway. Subsequently there are no franchising organisations in Norway with a link to the European Franchise Federation (EFF) or the International Franchise Association (IFA), and as such the ethical codes applied by these organisations are not considered mandatory, but are still applied by many franchise concepts in Norway.
There are various franchise associations in the United States but the most established and well known is the International Franchise Association (the “IFA”). Membership is not required; however, there are benefits to membership that may prove helpful. The IFA provides information on legal developments, networking opportunities, helps connect businesses with useful suppliers and access to new technologies and generally seeks to educate franchisors and franchisees on beneficial methods and business practices to improve franchising. There are no obligations related to participation in the IFA (other than yearly membership dues). However, the IFA has established a Code of Ethics - - serving as a framework for the best practice and ideals in franchise relationships - - with which it expects its members to comply. While the IFA oversees the relationships between members and their compliance with the Code of Ethics, the Code is largely a self-regulation program with no real enforcement mechanism; it mainly attempts to resolve disputes better members as they arise. Importantly, the Code is not intended to establish, and does not have the effect of establishing, standards to be applied by third parties, such as the courts.
The mains Italian franchise Association are:
Associazione Italiana del Franchising (also called Assofranchising or AIF), whose purpose is to spread a wider knowledge of franchising in the business community, to offer members proper information and advice, to promulgate specific studies concerning general or specific matters involving franchising and to monitor any statutory or case law development. Member of such association can be franchisor or prospective franchisor.
Federazione italiana del franchising (also called Federfranchising), which represents both franchisors and franchisees.
Confimpresa, which is a retail association, open to industrial, commercial and service enterprises that produce and/or market branded consumer goods and/or services (and thus not only to franchisors).
Membership is not mandatory but it is commercially advisable.
The BFA is the national franchising association in the UK and many reputable franchisors are members. Membership is not required, but is often seen as a "seal of approval" for having a tried and tested franchise system and may help recruitments efforts.
Membership does come at a price as the BFA requires its members to comply with the BFA's Code of Ethics. The BFA Code provides additional standards of ethical behaviour that affect various aspects of the franchise relationship, in particular in relation to advertising, recruitment and the requirement to exercise fairness throughout the relationship and in dispute resolution.
Franchisors wishing to join the BFA are initially assessed and must be periodically re-accredited to ensure their continued compliance with the BFA Code.