Tweet

International Franchise Association Code of Ethics

Guest post by: Anne Barr

Article Overview: This article discusses the International Franchise Association's Code of Ethics.

International Franchise Association Code of Ethics

What exactly is a code of ethics? Best practices? Ideals? Group or association self regulation? Trust?

The International Franchise Association (IFA) has a Code of Ethics that is intended to establish a framework for the implementation of best practices in the franchise relationships of IFA members. This Code of Ethics is one component of the IFA’s self-regulation program which also includes streamlined measures for the enforcement mechanisms for the code.

One of the main components of the IFA Code of Ethics is Trust, Truth and Honesty which IFA describes as the foundation of franchising. A willing interdependence between franchisors and franchisees, and the trust and honesty upon which it is founded, has made franchising a worldwide success as a strategy for business growth.

The franchisor has to protect the brand and because of this the franchise agreements are often quite one sided in favor of the franchisor. The franchisee wants the American Dream of owning his/her own business, being their own boss, etc. They must perform rigorous due diligence to determine if the brand is a good fit for them and allow them to achieve their business and professional goals. Before becoming a franchise, they must also determine they are able and willing to follow the system clearly defined in the franchise agreements.

Sounds pretty straight forward so far.

Groups and associations are always going to have some mavericks who still want to do it their way. Some franchisors will decide to upgrade the model and perhaps don’t involve the franchisees in such decisions that can be disastrous for some.

What about the franchisors and franchisees that do not belong to the IFA? Certainly not necessary to do business – However, a positive public image and reputation of the franchise system is one of its most valuable and enduring assets.

The IFA is a very well respected organization and works diligently to keep the needs of small business in the forefront with politicians, lenders and the public. The IFA Code of Ethics is worthwhile and necessary because it embodies best practices, creates winning together as a team, promotes open and frequent communication, adherence to all federal and local laws and most importantly stresses trust, truth and honesty among all of its members.

Related Articles
  Ethical Expectation You Should Expect From Your Business Broker
  Franchising in Indonesia
  What makes a good franchise
  Ethical franchising
  “Building An Environment of Ethical Behavior. Ten Tips From Your Strategic Thinking Business Coach ”
  Sales Training – Salespeople, Let Me Sell You a Bridge!
  Top tips to buy a franchise
  Franchise growth predictions optimistic
  The Ethical Road to Success
  Franchisee checklist - the franchise agreement
  Franchise Industry Reaches out to Veterans
  Franchise Businesses Appeal to Women Entrepreneurs
  Did you know: NIIT Franchise was present in Malaysia in 1997?
  Business Ethics Lesson From An Unlikely Individual
  Challenges in Canadian Franchise Financing in 2010
  Benefits and Responsibilities of Franchise Ownership
  About 60% of all franchise opportunities have less than 50 units.
  The Critical Importance of Business Ethics For Effective Leadership, According To Your Strategic Thinking Business Coach
  How to Buy a Business Opportunity
  How to Sell Franchises at Trade Shows

Article Tags: IFA Code of Ethics, International Franchise Association



Related Forum Posts
Re: Confused about the Bar coding for fashion wears. - You can refer to the International bar-coding system for Readymade Garments. As far as guidelines on standardization are concerned, you can contact Export Garments Manufacturer's Association, The Barcode Machines Mfrs and explain your specific requirements
Women Entrepreneur Suggestion - I would highly recommend Katharine Giovanni of Triangle Concierge . Katharine is the world leader when it comes to the errand/concierge and lifestyle management industries. She provides training, seminars, workshops, consultations and is called upon by people from all over the world. Katharine has been interviewed in numerous publications and interviewed by all forms of the media. Katharine founded the ICEA (International Errand & Concierge Association), Triangle Concierge, Triangle Concierge International and is a co-owner of XPACS Concierge service which providing services to athletes all across the world. She is very motivational, an excellent teacher, an inspiring role model for those of us in the industry, a major contributor in bring attention to the industry.
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Small Business Internet Marketing

3 Key Factors For Raising Capital

Let's Skip the Offshore Horror Stories

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.