1. THE BASICS

A What is franchising? Franchising is a business model used in more than 70 industries generating in excess of three trillion dollars in the US alone. There are several main types of franchising, such as trade name or brand franchising, product franchising and business franchising.

Basically put, but in no sense a complete explanation, the term franchising refers to the arising of an agreement between franchiser and franchisee which grants the later the right to either distribute merchandise, use patented or trademarked products in the implementation of carrying out a service involving these products, use a patented technique to deliver a service or use of another person’s business philosophy. There are now many types of business to consider when asking the question what is franchising, from extremely complex systems to the most simple as in becoming an agent of product supplies.

One of the first franchises as we know them was pioneered by Isaac Singer who invented and later improved the Singer Sewing Machine which he wanted to increase sales of. While the singer sewing machine was successful, the franchise was not, however franchising is now a business model used in more than 70 industries generating in excess of three trillion dollars in the US alone.

The growth of fast food stops, hotel and motel chain franchises exploded in the fifties in conjunction with the interstate highways, one of the most well known being McDonalds serving 47 million customers daily in 31,000 outlets in 119 countries and employing nearly one and a half a million people. McDonalds is one of logos that sticks in peoples minds when you ask them, what is Franchising?

Franchising now comprises of more than 70 industries
You can find more information on Franchising on wikipedia

A The British Franchise Association or BFA, is a voluntary body of accreditation for franchises, and was established in 1977.
The basis for accreditation with the British Franchise Association is embodied by strict standards which comprise of the company’s business activity; disclosures made to franchisees, the terms and conditions of the franchise agreement the company’s financial position and the track record of the companies officers.

In order to qualify for full membership and accreditation with the British Franchise Association, franchise companies must have been successfully trading with at least four franchisees, and in addition must submit an application together with evidence of accounts and a correctly constituted pilot scheme which ahs operated for one year.

In order to qualify for associate membership, companies must submit an identical set of documents and agreements, have run a correctly constituted pilot scheme for one year and give evidence of at least one franchisee operating successfully over at least one year.

Provisional Listing of companies not likely to have the type of qualifications for full or associate membership will include affiliated professional advisors, experienced franchising advisors companies new to franchising and companies taking British Franchise Association accredited advice on the structuring of the business.

For up to date information go to http://www.thebfa.org/