The European Franchise Federation (EFF)

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What is the European Franchise Federation?

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The European Franchise Federation (EFF)
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The European Franchise Federation (EFF) is a not-for-profit, international organisation which aims to regulate the franchise industry of Europe through the development and promotion of a European Code of Ethics. Founded in 1972 and headquartered in Belgium, the EFF is recognised as the sole European authority on the definition of ethical franchising.

The EFF is currently composed of national franchise associations and each of these is the accredited representative of the franchise industry of their country. The EFF also accepts non-European franchise associations and other members who have a professional interest in franchising but these affiliates do not have voting rights and can not become appointed officers of the EFF.

The Central Mission of the EFF

Established in the interests of promoting transparency and legitimacy in franchising, the core vision of the EFF is to generate a comprehensive understanding within all member associations of the importance of ethics in the industry.

Therefore, the key aims of the EFF are:

  • To promote franchising in Europe.
  • To ensure the development of the franchise industry is subject to a regulatory framework.
  • To protect the development of the franchise industry with the European Code of Ethics.
  • To make sure that all member associations utilise this Code of Ethics to build a strong reputation for themselves and for the franchise industry.
  • To represent the interests of the franchise industry with respect to international organisations including the European Commission.
  • To positively represent the franchise industry worldwide.
  • To serve the interests of all member associations.
  • To provide accurate and relevant information regarding the current positioning of the franchise industry.

The EFF carries out these aims through a series of core missions including:

  • The effort to become the key voice of authority on the promotion of franchising throughout Europe.
  • The implementation of self-regulatory policies which allow the development of franchise models in accordance with the Code of Ethics.
  • The development of the Best Practice Community of Associations and of Franchises – a platform allowing the exchange of best practice principles.
The European Franchise Federation (EFF)
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EFF European Code of Ethics for Franchising

The EFF European Code of Ethics for Franchising is the European franchising industry’s self-regulatory code which provides guidance and guidelines to all franchisors and franchisees looking for information on the best practice principles of franchising in Europe. Originally written in 1972, this code has been continually renewed and updated by members of the EFF to ensure that all the guiding principles included are relevant and up-to-date.

The Code of Ethics developed by the EFF is not intended to replace any related national law but to provide an unambiguous and accessible outline of how to ensure that franchising in Europe is both regulated and trustworthy. The code is binding for all EFF members and their respective memberships. Each franchise association is directly responsible for ensuring that this code is distributed and heeded.

Contained within the code itself, there is:

  1. A definition of franchising.
  2. The guiding principles of franchising.
  3. The rules regarding recruitment, advertising and disclosure.
  4. An outline of the franchise agreement.
  5. The ethics relating to master franchise agreements.

Through following this code of ethics, associations can ensure they are following best practice principles in relation to franchising in Europe. This enables them to issue a code of behaviour to their member companies, as is applicable to each country.

Research and Reports

The EFF is a valuable source of franchise information due to its well-respected network of franchisors, franchisees, legal advisors, financial advisors and sales/marketing experts. The EFF prides itself on promoting information both inside and outside of the franchise sector and partners with many international bodies to broaden the reach and the understanding of the franchise industry.

Due to the information collated by the EFF and its networking partners, the EFF has been able to commission a variety of reports on the franchise industry throughout Europe. These reports include relevant information on the development of this industry and statistical analysis of the existing and potential markets of this sector.

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