Why Join A BFA Member Franchise?

Joining a franchise could be one of the largest and most important investments that you make in your life – not only financially, but also in terms of your own time and commitment.

Adapted from CivvyStreet Magazine, October 2013. Words: Paul Stafford, British Franchising Association

With hundreds of different businesses in every sector now looking for franchisees to grow, it can be difficult to know how to narrow down your search. Franchising allows many people to start entirely new lives, realising new lifestyles and ambitions, but only when done well.

Choosing which franchise network to join is not something to be entered into lightly and must be given careful consideration. This includes making sure you have thoroughly researched all the available franchise opportunities, what they involve and the market in which they operate. Whilst this is something that you should never try to cut corners on, there is one key aspect that can give you a much higher level of confidence when making your decision.

Your first port of call should be the British Franchise Association (BFA). Established in 1977 as a not-for-profit organisation to provide an authoritative voice for UK franchising, the association protects and promotes ethical practice in the sector.

To do so, it assesses and accredits franchise companies (franchisors) against strict criteria which primarily relate to the terms of the contract between franchisor and franchisee; financial sustainability; franchisee support offered; and full and fair disclosure of relevant information to prospective franchisees.

Make no mistake, it’s not as simple as turning up with a cheque and you’re in – which is precisely why franchisors take such pride in gaining membership, and why franchisees should take note about the BFA status of the franchisors they’re speaking with. A full list is kept up to date on the BFA’s website, www.thebfa.org.

The BFA membership logo is a ‘kite mark’ for ethics, standards and credibility within the franchise sector, recognised both nationally and internationally. It puts a stamp on the business that says “we’re proud of our franchise model and how it supports our franchisees and have chosen to put it up against the toughest industry standards to affirm that”. What message could be stronger if you’re looking to invest your hard-earned money in a franchise?

The BFA has some 300 franchised businesses in membership that have been positively accredited as ‘good’ franchisors. Whilst membership of the BFA does not provide any warranty as to the likelihood of a franchisee achieving commercial success, the confidence that it can give you is invaluable.

BFA Membership Levels

When looking at a franchise business and whether they are BFA-accredited, it is helpful to understand the three levels of membership that can be achieved:

Full Members

Full Members of the BFA are very established businesses with a proven trading and franchising record. They will usually have an established network of franchisees, a well-known brand and a very stable business.

Associate Members

Associate Members of the BFA have proven their ability to launch and support at least one franchise outlet for 12 months, and are now in the business of building their network. The franchisor will be investing in support and development, with evidence of its ability to establish a solid network.

Provisional Listing

Provisionally Listed Companies are at the beginning of their development in franchising – they may be at the pilot stage, or have only one or two franchisees. However, there is a real business up and running where end products and services are being sold successfully to consumers. Their franchise agreement is sound, and by joining the BFA the company has committed itself to develop the business in accordance with BFA industry standards.

The differences in membership therefore relate primarily to how long a franchise has been trading, and usually the size of the network. A good general rule to bear in mind – Full Members will have very recognisable brands and strong systems; as a result, they’ll usually cost a little more to join, but you could say the risk is lowered as they are more established.

The other end of the scale, Provisionally Listed Companies, are obviously not established, but are committed to supporting their franchisees. There is more of a risk element in getting involved at such an early stage, but the rewards are potentially great – imagine getting in on the ground floor with McDonald’s or Subway, having paid only a fraction of the cost! Franchise fees are usually lower, but franchisees will have more of an input into the future evolution of the business model.

Money, money, money…

Finances are usually a major factor in determining your choice of franchise. Many ex-Service personnel are able to use their savings or lump sum to start up their own franchise business. And the good news is that banks look favourably on the model, and on BFA members in particular.

The major banks involved in franchising have all been accredited by the BFA as well, and demonstrated their knowledge and expertise in the sector. That also means that they have an intimate knowledge of the BFA’s practices when accrediting franchisors, and understand what is being checked.

As a result, they look favourably on franchising in general (as a proven model), and on BFA members in particular. They understand the BFA accreditation process and the quality needed to attain membership. That in turn puts you, the franchisee, in a better position to gain financial support as a BFA member franchisee – though you’ll still need a good business plan of course!

Banks accredited by the BFA are: HSBC, NatWest, RBS, Lloyds, Barclays and Metro Bank. All have their own franchising departments, who you should ask for from the outset. Details can again be found on the BFA website.

If you make the right choice, franchising could be just the new start you’re looking for.

If you have any questions or want to know more about any aspect of franchising, then call the BFA offices on: 01235 820470 or see the website for a host of useful resources, including the questions you should be asking franchisors.

This post is brought to you in association with Platinum Wave.

Platinum Wave is an independent BFA accredited franchise consultancy. Suzie McCafferty is regarded as one of the UK’s foremost franchising experts having worked in the sector for over 14 years having successfully built her own international franchising networks and establishing multi-million pound companies through franchising in the UK, Europe, the Middle East and even the Caribbean. Suzie now specialises in helping other businesses to grow and develop their businesses through successful and sustainable franchising and franchisee recruitment on an international scale.

As a finalist in Young Entrepreneur of the Year Awards 2006 and 2011, Suzie is an affiliate member of the British Franchise Association and was Chairperson for the Scottish Franchise Forum, part of the British Franchise Association, in 2009 and 2010.

For further information please visit: www.platinumwave.co.uk, email suzie@platinumwave.co.uk or tel: +44(0) 131 664 1218 or +44(0) 7793 054 233