Irish Franchise Association

Irish Franchise Association's Code of Ethics

The declared objective of the Irish Franchise Association is to protect and further the interests of properly constructed franchising companies in Ireland and by these means to establish and maintain a clear definition of ethical franchising standards to assist members of the Irish public, press, potential investors and government bodies in differentiating between sound Irish business opportunities and any suspect investment. In consequence of these aims, a code of ethics and strict criteria for membership are produced, both of which are constructed, amongst other things, to ensure that the franchisee is offered a viable business opportunity in Ireland. It is also part of the Irish Franchise Association's policy to provide information material for prospective franchisors and franchisees and to conduct educational seminars.

The following is an extract from the Irish Franchise Association's Code of Ethics:

"We accept the need for strongly perceived standards within the Irish franchise industry and are confident that our declared aims and requirements together with a policy of educational information for the public at large, will be a major contributory factor to the achievement of these objectives."

    1. The Irish Franchise Association's Code of Advertising Practice will be based on that established by the Advertising Standards Authority for Ireland and shall be modified from time to time in accordance with alterations notified by the ASAI.

    The Irish Franchise Association will subscribe fully to the ASAI Code, unless, on some specific issue, it is resolved by a full meeting of the Council of the Irish Franchise Association that the ASAI is acting against the best interests of the Irish public and of Irish franchising business in general on that specific issue. In this case the Irish Franchise Association will be required to formally notify the ASAI setting out the grounds for disagreement.

    2. No member shall sell, offer for sale or distribute any product or render any service, or promote the sale of distribution thereof, under any representation or condition (including the use of the name of a celebrity) which has the tendency, capacity or effect of misleading or deceiving purchasers or prospective purchasers.

    3. No member shall imitate the trademark, trade name, corporate identity, slogan or other mark of identification of another franchisor in any manner or form that would have the tendency or capacity to mislead or deceive.

    4. Full and accurate written disclosure of all information material to the franchise relationship shall be given to prospective franchisees within a reasonable time prior to the execution of any binding documents.

    5. The Irish franchise agreement shall set forth clearly the respective obligations and responsibilities of the parties and all other terms of the relationship and be free from ambiguity.

    6. The franchise agreement and all matters basic and material to the arrangement and relationship thereby created, shall be in writing and executed copies thereof given to the franchisee.

    7. A franchisor shall select and accept only those franchisees in Ireland who, upon reasonable investigation, possess the basic skills, education, personal qualities and adequate capital to succeed. There shall be no discrimination based on race, colour, religion, national origin or sex.

    8. A franchisor shall exercise reasonable surveillance over the activities of his franchisees to the end that the contractual obligations of both parties are observed and the public interest safeguarded.

    9. Fairness shall characterise all dealings between a franchisor and its franchisees. A franchisor shall give notice to its franchisee of any contractual breach and grant reasonable time to remedy default.

    10. A franchisor shall make every effort to resolve complaints, grievances and disputes with its franchisees with good faith and goodwill through fair and reasonable direct communication and negotiation.