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Author: Tracey Dickens
By subscribing to the European Franchise Federation (“EFF”) the British Franchise Association (“BFA”), accepted the European Code of Ethics and undertook not to amend or delete it in any way. However, the EFF recognised that national requirements may require other clauses or provisions to be included in member states, and members are therefore permitted to include such provisions in a separate document, provided they do not conflict with or detract from the European Code. The BFA produced the Code of Ethical Conduct in Franchising: Extension and Interpretation (“Code”), which comprises the European Code, and are therefore required to impose on its own members the obligation to respect and apply the provisions of the Code. The European Code, and by its adoption, the Code, is intended to be a practical ensemble of essential provisions of fair behaviour for franchise practitioners in Europe, but not to replace related national or EC law.
Key Provisions within the Code
A requirement for the Franchisor:
The Code does not have any statutory force and like all codes is voluntary. It is imposed on members of the BFA and regulated internally, the ultimate sanction being loss of membership by a defaulting member. However, businesses that abide by the Code’s terms will be able to show that they have acted reasonably in accordance with industry wide standards, which will put them in a better position to defend claims of default or bad practice. Any Franchisor can choose to adopt the principles of the Code, although without being a member of the BFA, the Franchisor would be policing its own implementation of the principles. Fair dealings between Franchisor and Franchisee are more likely to lead to a long term successful relationship, and the Code identifies what the franchise industry recognises as the minimum standards required to achieve fair dealings.
At Birkett Long Solicitors our team can offer expert advice on all aspects of franchising. Contact Tracey Dickens on direct dial 01206 217326 and tracey.dickens@birkettlong.co.uk.