Summary minutes of a Meeting held on Tuesday 20 April at Scarman House, Warwick University beginning at 11am.

Present:

• Sir Bernard Ingham (Chairman)
• Robert Blake - Cash Generator
• Justin Brookes - Mail Boxes Etc
• Lance Griffiths - Driver Hire
• Ken Bevis - Signs Express
• Shaun Meskall - Apollo Window Blinds
• Mike Bradshaw - Chem Dry
• David Duncan - McDonald’s
• Herjit Ghazl - Wimpy

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 eight National Franchisee Forum members and three bfa staff. Apologies were received from two Forum members.

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 Distribution

   Forum members were asked if their franchisors had distributed minutes from the last Franchisee Forum meeting. Three said their franchisors had distributed the minutes, while another three said that they did not believe it had been done. bfa Board Members would be reminded.

   Membership Accreditation Project Validation

   The bfa was currently negotiating the formal contract for the accreditation project with Business Link Hertfordshire. Forum Members would be updated at the next meeting.

   bfa Affiliate Accountant Speaker on Business Values

   More specific issues on resales were discussed later in the meeting, Minute 4.

3. DISPUTE RESOLUTION PROCEDURE

   Forum members discussed the changes that they had proposed and which had now been incorporated into the bfa’s Dispute Resolution scheme. The forum discussed the basis of the procedure in seeking to restore direct communication between franchisee and franchisor before moving on, if there were still a difference of view, to mediation or arbitration.

   The forum also discussed the Canadian Franchise Association’s Ombudsman scheme which, it was suggested, might be an avenue worth exploring for the UK franchise industry, not least because of its potential to differentiate bfa Members. A report would be made to the Forum’s August meeting.

   Forum Members also discussed the problems created for the franchise sector by businesses using the franchise label but which were no more than multi level marketing or similar types of distribution scheme. The bfa would be actively seeking a greater research involvement from the business academic community.

4. ANY OTHER BUSINESS

   Forum members discussed the issue of resales and the factors which might influence the values attributable to franchises as going concerns; the brand and the sector; the resales history of comparable businesses; the motives for and circumstances of the sale; the market character - business-to-business or retail. The recent review of the rights of franchisees and franchisors on resales in the UK and Europe was considered. Forum Members also considered the impact of support systems on franchise resales and asked the bfa to consider how support systems might be evaluated, initiating a further discussion on this aspect of franchising at the Forum’s August meeting.

5. DATE OF NEXT MEETING

   Wednesday, June 30 for a Joint Meeting with the bfa Board at Scarman House, Warwick University, at 3pm.