There is a membership category which suits your needs whether you are a long-time franchise operator, a franchisor in the making or engaged in providing management support and advice to the franchise sector.
Categories of membership:
Full, Associate, Affiliate and Business Support
Policies and Procedures:
In joining the Irish Franchise Association, all members commit to comply with the terms of the Association’s published policies and procedures:
- The Code of Ethical Conduct as outlined by the European Code of Conduct
- The complaints procedure with regards to complaints made by a franchisee against the member franchisor
- The terms of annual re-accreditation
Code of Advertising practice:
Members once accredited also agree to comply with the Code of Advertising practice as published by the local advertising standards authority.
In addition, members also agree to provide to the Association any non-confidential information relating to their franchised business, or relating to the standing and qualifications of its directors as may be requested by an authorized official of the Association.
Members also agree to provide to an authorised official of the Association access (at reasonable times and on reasonable notice) to confidential information relating to the franchise and its standing (on the understanding that such information remains confidential to the authorized official.)
Summary of Franchisor membership criteria:
- Proven trading and franchising record
Full members must satisfy all five categories.
Each of the criteria set out a general condition that each applicant member must fulfil. Each condition is followed by an example of how applicants will ordinarily be expected to demonstrate that the criteria has been met.
1. Demonstrate that the business itself is viable
Full members require a minimum of 1 year’s audited trading accounts, plus a current trading Profit & Loss statement which shows that the business is capable of being run at a level of profit that will support a franchised network. Associate members must provide a current set of trading accounts.
2. Demonstrate that the contractual terms to be offered to prospective franchisees comply with the Association’s Code of Ethics and such other terms as it may publish from time to time.
A copy of the then current franchise agreement must be lodged with the Association for accreditation, highlighting any changes thereto.
3. Demonstrate that the offer documents to be used with prospective franchisees present a full, transparent and realistic picture of the franchise proposition. Lodge with the Association for inspection a copy of the then current offer documents and any changes thereto.
Applicants who comply with the above criteria will be eligible to be considered for Associate membership. In order to be considered for Full membership the following conditions must also be met.
4. Demonstrate that the operating units can be successfully replicated.
The production of 12 months’ recently audited accounts for a managed arms-length pilot franchise, or a fully fledged pilot franchise, which shows a trading performance at least in line with the business plan set out for it which is supported by a developed operating system.
5. Demonstrate that the franchise network has developed over time with a proven trading and franchising record.
Applicants must provide a record of franchise openings, withdrawals and any disputes (which required external interventions to resolve) together with evidence of the profitability of individual units and of the network as a whole sustained over a period of 24 months.
Overseas franchisors franchising directly into Ireland and the master licensees of overseas franchisors are eligible to apply for Associate or Full membership in respect of their Irish operation. Similarly, overseas franchisors seeking only to operate through a master franchisee are eligible to apply for membership. To gain admission their overseas operation must comply with the general conditions of membership and the specific conditions applicable to Full or Associate membership.