It is also a skilled professional area of business management, and according to a new study commissioned by the British Franchise Association and carried out by the University of Surrey, those skills are key to franchising success.

The research, based on in-depth interviews with both successful and ‘failed’ franchises, explores the key indicators of successful franchising. Among the key findings is the fact that previous business experience of the principals of franchising is important to franchise success.

BFA Director General Brian Smart said: “You need skills to make franchising work. If people who start a franchise know nothing about the sector, it almost certainly won’t work. Proven knowledge and experience of franchising is essential to its success.”

The study also highlighted the importance of a secure financial base, which is necessary to ensure that firms are not overly reliant on franchise fees. It also revealed that systems based on substantial and complex ‘know-how’ may not be suitable for franchising.

Franchisee recruitment is seen as critical to the success of the franchise, with many of the ‘failed’ franchises having done so because of their inability to attract and recruit suitable franchisees. One of the themes that did emerge from the failed companies was the difficulty of managing the franchisor/franchisee relationship, which, in part, is a reflection of the franchisees recruited into the system. But there are also links to the degree of franchisee involvement.

The survey found that all of the successful companies had established some form of franchisee advisory committee or council, and all stressed the importance of these councils in terms of helping manage the franchisee/franchisor relationship.

“This is something that the BFA has believed in and been committed to for many years,” added Smart. “The good franchisors that have put this principal into practice over the last few years have seen the benefits.”

One survey respondent commenting on the fact that franchisee involvement helped promote good relations, said: “It does make franchisees feel that they are being consulted, and involved.”

One of the best examples of franchisee involvement can be seen in the BFA`s National Franchise Forum, which comprises franchisee representatives from elected BFA franchisor board members and is chaired by BFA President Sir Bernard Ingham.

The forum meets up to four times every year to discuss issues at the very heart of ethical franchising. The forum also has a key role in contributing to the formation of BFA policies.

“It is a fact that the more you can involve franchisees in peer group development of the business, the more the business will benefit,” said Smart.

Since its launch in 1977, the BFA has worked to ensure the reputation of the industry by recognising those franchises that uphold strict ethical standards. This has been achieved by assessing and accrediting franchise systems against a number of criteria designed to distinguish ‘good’ systems from ‘bad’.

These accreditation criteria are currently under review, and this current study forms part of that review through an analysis of companies, which have franchised successfully, and those, which have withdrawn from franchising.

For more information about franchising visit the BFA website at www.british-franchise.org.uk