National franchisor sales teams: Creating the Illusion of Respectability

GoodHousekeepingSealWhat do all these associations have in common with the Good Housekeeping Seal of Approval?

They are organizations controlled by franchisors that promote the sale of franchises into national jurisdictions.

  • That is all they do: sell.
  • There is no quality, at all, in what they do.

They also have, at best, voluntary Codes of Ethics which are almost never enforced.

In fact, some of the worst predatory franchise systems I have ever known, are long-standing members. It pays for them to join to bolster their credibility.

  • Do not be fooled: these members are NOT  a measure of investor worthiness.

In many cases, predators use this Mask of Respectability to disarm unwary potential franchise investors.

  • World Franchise Council: Enhancing the global Franchise Community Take a look.
  • International Franchise Association
  • Canadian Franchise Association
  • Franchise Council of Australia
  • Franchise Association of New Zealand
  • China Chain Store & Franchise Association
  • The Franchise Association of Southern Africa
  • British Franchise Association

As usual, I am always very pleased to debate any representatives from these organizations.

Or anyone from their financial institutions which buttress this facade.



6 Responses to National franchisor sales teams: Creating the Illusion of Respectability

  1. I believe that the IFA’s Code of Ethics explicitly states that it is not mean to confer any legal obligation to a third party.


  2. Les Stewart says:

    I have no doubt that every national association has provided itself with a technical defense in the unlikely event that a legal challenge was brought against them.

    I think it was Tom Carlyle who said: Clever men are good, but they are not the best. There are many extremely intelligent, charming and bright individual in every elite.

    Some waffen are armed with guns; some with rhetoric.

    Or so I have read, in any case Michael.



  3. No, I think it is much worse.

    Effectively, the IFA is telling the world that a) franchisors have signed up for a code of ethics, and b) that breaching this code of ethics has no consequences.

    Traditional trade associations have banded together to maintain a quasi monopoly and had to shun rogue members.


  4. Les Stewart says:

    Yes, I agree.

    But then, hey, I don’t put any change in the coin boxes in fast food joints because of sick of profitable trading on a cheesy version of an important concept: personal charity.

    Free riding debases every worthwhile idea. Les


  5. I am not following this: are you saying that there can be no effective franchise trade association because of free riding? As you know, the only franchise trade association that kicked out a member was the AAFD.


  6. Les Stewart says:

    Franchisors free ride on franchisees’ customers naivety and generosity.

    The coins collected from retail customers and then donated as if the franchisor sacrificed something, debases the concept of charity (ie. faith, hope, & charity).

    An old idea, that you should take credit only for your own good works, granted.



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