FAQs about the franchise package

What’s the role of the bfa?

According to the bfa’s Articles of Association, its primary role is to:

  • promote the interests of franchisors
  • Maintain its Code of Ethical Conduct and compliance therewith
  • Provide advice on all queries related to franchising
  • Promote trust and confidence in bfa-accredited franchises
  • Provide education and training with regard to franchises, and
  • Increase efficiency and economy in the franchising practice.

Furthermore, at its core, the bfa supports and influences high-quality ethical business format franchising in accordance with the European Code of Ethics.


How is a franchise package related to a franchise agreement?

A franchise agreement is one aspect of the franchise package. The franchise agreement is the document that is signed between the franchisor and new franchisee at the outset of their business relationship. This agreement sets out the full terms of the business relationship. However, the franchise package is more comprehensive and includes the franchise agreement as a part of the package. The package includes everything that the new franchisee requires in order to run the business without previous know-how.


What should be included in a franchise package?

Although every franchisor’s franchise package will differ from the next, there are some standard parts that make up the basic franchise package. The general franchise package should contain:

  • Details about the use of the franchisor’s trademark/trade name and intellectual property
  • The franchise agreement
  • All the know-how (business and technical methods and processes) on how to run the franchise business
  • The operations manual sets out in detail all the procedures required to run the business
  • Territorial rights
  • Personnel and accounting procedures
  • What services the franchisor provides its franchisees such as initial and ongoing training
  • Equipment needed to operate the business (if applicable) and product supply arrangements
  • Marketing and advertising aids
  • The number of franchise fees that are to be paid to the franchisor

How do you develop a franchise package?

Creating a franchise package can appear to be an overwhelming task considering all the details that must be included in it. However, some tips to consider for creating this detailed package include the following:

  • You should show your proven track record of success as a franchisor
  • Create an information pack that’s easy to understand and which is accessible to your target audience (franchisees)
  • Ensure all your intellectual property is adequately protected
  • Establish clear territories where your business will be operational through franchising
  • Offer benefits to prospective franchisees which are attractive
  • Be generous with your training and support – indicate exactly what is to be expected
  • Don’t leave out the networking opportunities that your franchisees can avail of
  • Be sure to clarify the reasoning behind your fee structure for greater clarity.

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