Maintain the Code of Conduct for Franchising a Business

In order to franchise business, you need to maintain the franchise code of conduct properly. The code of conduct is different at various countries. In order to franchise a business, you need to maintain the codes carefully.

If you are considering franchising your business, you need to know what franchising is actually about. Basically, it is the task of replicating the business in order to expand a certain business process. In a franchise, a group of people or the franchisees get the chance to replicate the business of the franchiser or the owner of that business process. However, as easy as it appears, it may not be that easy at all, if the franchising rules and regulations are not set properly. In various countries all over the world, the franchising rules are different.

If you ask, “how do I franchise my business”, you need to know about the franchise agreements, which you need to main all the times during franchising a business.

What is franchise agreement?

When a certain party grants the other party (consider the first party as franchiser and the next, the franchisees) for carrying on the business process, the other party or the franchisees get the chance to use the logo, business process, marketing plan as well as other commercial symbols. The franchise agreement allows the franchisees to use these. At the same time, according to the agreement, the franchisees need to pay some amounts to the franchisers as well. However, before entering to the bonding of agreement, you need to confirm a few things –

The franchisees should confirm that they have learned the complete details regarding the business
The franchising fees should be cleared (certainly, it is for using the franchiser’s logo and the whole business process and therefore, the fee should be considered as non-refundable)
Both the franchiser and the franchisee should seek advice from the lawyers
Along with it, franchise education is also important for the franchisees

In addition, a franchisee needs to confirm that the franchise is genuine, so that no problem appears later on.

Now, as you ask regarding the franchising agreements, you should learn regarding franchising code of conduct. In the following part, you will learn the franchising code of conduct for settling your business in Australia.

What is franchising code of conduct?

When you are asking some expert, “How do I franchise my business”, the first suggestion the expert will give you is to follow the code of conduct for franchising. Here is what the new code says –

The parties should maintain a good faith amongst themselves before getting into franchising a business
The code of conduct will impose financial penalties for breaching the code
The code of conduct says that the franchiser should provide the briefing to the franchisees regarding franchising a certain business process
There should be transparency for marketing and advertising set up. If there is any new marketing fund set up and advertising fees are imposed, the franchisees should have clear idea regarding it
The code of conduct does not let the franchiser to pay a good amount of money except some limited circumstances
It also says that the franchisers and the franchisee should disclose the matters regarding their online sales

Maintaining the franchising code of conduct will help you better to franchise the business in a proper way. These are not only beneficial for the franchisers but also for franchisees as well.

Author's Bio:

David Collingwood is one of the leading franchising consultants in Australia, who can suggest you regarding the best ways of franchising your business. You can follow the suggestions for franchising your business in better ways. She is not only a franchising consuiltant but also a writer. Her association with The Franchising Institute have benefitted the franchisers and franchisees in several ways.