Summary minutes of a Meeting held on Tuesday 21st February 2004 Scarman House, Warwick University beginning at 11am.

Present:

• Sir Bernard Ingham (Chairman)
• Robert Blake - Cash Generator
• Justin Brookes - Mail Boxes Etc
• Ian Clarke - Rainbow International
• Lance Griffiths - Driver Hire
• Ken Bevis - Signs Express

Also Present

• Brian Smart (Director General) - bfa
• Catherine Jackson (Accreditation Manager) - bfa
• Johanna Roughley (Communications Manager) - bfa

1. WELCOME AND APOLOGIES FOR ABSENCE

   Sir Bernard Ingham chaired the Forum meeting, which was attended by five National Franchisee Forum members and three bfa staff. Apologies were received from three Forum members.

   Due to a change on the bfa Board, a representative from McDonald’s Restaurants has taken MRI Worldwide’s place on the Forum. A letter was sent to the MRI representative thanking them for their contribution. The bfa Director General introduced the Association’s new Communications Manager and outlined her responsibilities to the Forum.

2. MINUTES OF THE LAST MEETING AND MATTERS ARISING

   The minutes were accepted as a correct record with the following matter arising:

   National Franchisee Forum Minutes

   Forum members asked for the full and summary minutes to be sent within 14 days of the meeting. All board members will be reminded that they had committed to circulating the minutes to their franchisees. Summary minutes will be posted on the bfa website and the three franchise magazines will receive copies of the summary minutes.

3. DISPUTE RESOLUTION PROCEDURE

   Forum members discussed the bfa’s updated Dispute Resolution Procedure document, which included amendments suggested by Forum members and subsequent changes made by bfa Legal Affairs Board Member. Members asked for a copy of the document, with the changes marked out, to be forwarded to them for discussion at the next meeting.

   The bfa Director General explained that Forum members had looked at arbitration scheme rules and those rules had now been changed to benefit all parties. Previously the Chartered Institute of Arbitrators approved arbitrators but none had specific franchise expertise. Now, if both sides agree with the choice, the bfa would choose an arbitrator with expertise in franchising.

4. MEMBERSHIP ACCREDITATION PROJECT VALIDATION

   The bfa Director General explained the bfa’s accreditation criteria: bfa members must prove that they are franchisable, viable, ethical and disclosed. The bfa is now looking at the possibility of using a more open accreditation process, which uses a system of weighted matrices.

   Business Link Hertfordshire will assess the system quantitatively by investigating whether the matrix system would improve the bfa’s ability to identify “at risk” businesses. The University of Surrey will conduct qualitative research to evaluate linkage between actual success indicators and the criteria under review.

   Following discussion the Forum asked for a further presentation on the quantitative and qualitative research that is currently being set up. After the presentation the Forum agreed it would discuss where it could provide input on the system.

5. FUTURE ISSUES FOR FRANCHISING AND THE FORUM/WORK AGENDA

   The Forum agreed to discuss the levels of support offered to franchisees and exit strategies during 2004. Members would also like to hear from a bfa Affiliate accountant on how they would value a franchise business for re-sale.

6. ANY OTHER BUSINESS

   There was no other business.

7. DATE OF NEXT MEETING

   Tuesday, 20 April 2004 at Scarman House, Warwick University, at 11am.