December News


SELF REGULATION

European Code of Ethics for Franchising

A Word of introduction

Since its foundation in 1972, the European Franchise Federation has had a European Code of Ethics for Franchising. Its purpose is to promote a self-regulatory approach to the ethical business practice of franchising in Europe, and of setting the standards of this self-regulation.

The Code of Ethics has proved itself fundamentally useful not only to self-regulate the practice of franchising on the markets in Europe, but by doing so, has guaranteed the EFF a forceful and credible role in its dealings as the federating representative of franchising with both national and European authorities.

In the 1980’s, the EU and the European Court of Justice recognised the EFF’s Code as an example of its kind, both in its definition of franchising as in its responsible practice of this mode of distribution.

Every EFF national member, and in turn, each franchise system member of the national franchise associations (or federations) commits itself, through its membership, to the principles laid down in this Code.

Evolution of the Code

The EFF and its governing bodies amend the Code when necessary to fit the changes and evolution of franchising and its context in Europe. The EFF Code is therefore a written testimony to the on-going and forward thinking evolution that the EFF and its members associations bring to franchising in its development in Europe. The EFF Code has served as an inspiration to the Principles of Ethics adopted by the World Franchise Council.

The possibility of having national interpretations to the Code

There is only one standard version of the Code. It is to this version that each of the national association member adheres to when joining the EFF.
No member association may unilaterally modify or refuse to accept the integrity of this version.

However, each national franchise association is permitted to add its own provisions to this standard version, through a “national annexe” to the Code, so long as these provisions do not contradict or minimise the terms of the standard text.

An association would wish see reflected in their annexes to the EFF Code value changes brought to the practice of franchising in a particular national context and which that association wishes to see respected by their particular members. Such annexes, where they exist, generally reflect principles drawn from the evolution of jurisprudence or legislation on franchising in that country.

Before being adopted at a national level, the proposed annexes must receive the approval of the EFF’s governing bodies.

Not every EFF member franchise association has a set of annexes. For those that do, these can usually be downloaded in their national language from their association web site.