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Ethics, Ethics, Ethics
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You may be wondering at this point what, precisely, the European Code of Ethics is and how it relates to your franchise documents. Well, obviously the best solution is to go off and find a copy of the code, but here is a brief summary of the ethical guidelines. |
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Fairness and Business
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| Under the code, franchisors must: |
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| Have demonstrated the viability of their franchise |
| Have successfully operated at least one pilot franchise before beginning a network |
| Legally own all trademarks and logos |
| Provide ongoing support to franchisees |
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Marketing and Recruitment
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| Franchisors must: |
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| Make sure recruitments are not misleading |
| Be objective in suggesting the potential earnings of the franchise |
| Provide potential franchisees with a copy of the Code of Ethics |
| Ensure that all contracts are fair and above board |
| Do a reasonable amount of research and legwork to make sure the franchisee is a responsible person with adequate skills to handle the job |
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The Franchise Agreement
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| The franchise agreement must: |
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| Comply with national laws and ethics |
| Protect both the franchisor and the franchisee, and be available in both contracting parties’ languages |
| Clearly set forth responsibilities on both sides |
Contain, at the bare minimum:
- The franchisor’s rights
- The franchisee’s rights
- The goods and services the franchisee will receive
- The franchisor’s obligations
- The franchisee’s obligations
- The terms of payment
- The duration of the agreement (must be long enough to allow for reasonable return of the franchisee’s investment)
- The basis for any renewal of the agreement;
- The terms for selling the franchise and whether the franchisor has the right to intervene in this situation
- Information regarding the use of the company logo, trademark, etc.
- The Franchisor's right to adapt the franchise system and change the system
- Provisions for termination of the agreement;
- A clause where the franchisee is responsible for immediately surrendering all relevant materials and merchandise upon termination of the agreement |
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| In general, the Code of Ethics is not a complicated document. The terms set out are terms most honest business people would instinctively abide by. However, it is well worth consulting the document when constructing your franchise. Sometimes even the most well meaning individual will miss something the Code of Ethics covers. This is also a document your lawyer should be fully aware of, and in preparing your franchise agreement, he should be making certain that it is in compliance with the code. |
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How To Franchise Your Business Info Guide |
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Claim your FREE franchising consultation now
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Request a FREE 'Opportunity Analysis' with one of our experienced
business franchise consultants. During the analysis Franchise My Business will uncover the opportunities that exist within your business.
The detailed report will contain: |
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| Suitability for franchising |
| What you can charge for your franchise |
| The process explained |
| List changes needed to the business to enable successful franchising |
| Market analysis |
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No sales pitch - just good honest advice |
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Call 0845 020 4368 to book your free consultation |
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Our Fees
As you have seen franchising your business will generate a lot of additional cash. This option is also the quickest way to build a very profitable and high value business.
HMA Business Growth Solutions will complete 95% of the work involved in franchising the business. We will cover all legal costs (approx £5K), provide all the marketing material needed and provide a complete plan to recruit franchisees. We will also provide ongoing support and changes to the franchise system as required for a period of three years.
* £9995 + vat payable in 4 monthly payments (£2498.25 + VAT per
month).
This is a heavily discounted rate - we prefer to make the mass of
our fee by linking our fees to your success.
In addition we will: |
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| Advertise the franchise |
| Qualify the potential franchisees |
| Meet all potential franchisees |
| Any franchisees that we feel are suitable will be invited to
meet with you. |
| Close the sale and setup all legal contracts. |
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In return for handling this process and incurring many costs, our
fee will be 20% of the franchise fee. This fee will only be
payable on success.
Isn’t that refreshing - A consultancy company that links payment
to performance.
The exciting part of our service is that it won't cost you a
fortune. We mainly work by charging a small project fee and
accepting a minor percentage of the increased profits that we
create for you. |
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| We like to share in the extra profits we make for you. |
| This makes us highly motivated to achieve major increases in
profit. |
| Plus—we guarantee that your franchise will be a success or
we’ll work for you for absolutely nothing until it is or we will
refund your investment.
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| We are not like any other consultancy company you've ever come across. |
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Remember - if we can’t increase your profits dramatically
We’ll work for you for nothing until we do.
The Business Franchising Specialists
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