EFF. European Franchise Federation are accepted as is.
SECTION 1: DEFINITION
Franchising; is a method of marketing goods and / or services and / or technology. It is based on close and continuous cooperation between Franchisor and Franchisee, legally and financially separate and independent entities. In this relationship, Franchisor grants Franchisees the right and obligation to conduct their business individually, in accordance with Franchisor's system.
For a direct or indirect financial charge, Franchisee undertakes to: Franchisor's trade name and / or trademark, know-how, business and technical methods, business system and other industrial and / or intellectual property rights and its obligation, commercial and technical support to be received continuously by the parties for the duration and scope of a written franchise agreement for this purpose.
SECTION 2: GUIDING PRINCIPLES
2.1. Franchisor is the founder and long-term protector of the franchise system consisting of him and the individual franchisees.
2.2. of franchisor;
Franchisor must meet the following requirements:
(a) Before turning a business system into a franchise chain, it must have successfully run its business for a reasonable period of time and at least in one example business.
(b) They must have the name, brand and other distinctive features of the chain or have the legal right to use it.
(c) During the agreement, the Individual Franchisee must be provided with initial training and continuous commercial and/or technical support.
2.3. Obligations of the Individual Franchisee;
Individual Franchisee must meet the following requirements:
(a) They must make maximum efforts to develop the franchisee and to protect the common identity and reputation of the franchise system.
(b) For the efficient management of the Franchisor, they must provide verifiable business information that will facilitate the determination of Franchisee's performance and financial status. At the request of the Franchisor, the Franchisor and/or its representative must allow the Franchisee to investigate and operate the business records of the individual Franchisee at reasonable times.
(c) It must not disclose the know-how provided by Franchisor to third parties during and after the agreement.
2.4. Obligations of both parties;
The parties should be honest in their relations with each other.
In each breach of the Franchisor agreement, the Individual must notify the Franchisee in writing and allow reasonable time to correct the defect.
The parties should resolve their complaints, disputes etc. through sincerity and good faith, honest and reasonable contact, direct contact and negotiation.
SECTION 3: FRANCHISEE FINDING, ADVERTISING AND INFORMATION
3.1. Ads aimed at finding individual franchises should not be ambiguous and misleading.
3.2. The franchisee search, advertising and promotional materials that contain direct or indirect information about the possible future results, figures and earnings of the individual Franchisee should be unbiased, not misleading and non-directive.
3.3. In order for individual Franchisee candidates to participate fully informed of any binding document, an up-to-date copy of these Honest Franchise Principles and all information about the franchise relationship must be provided, in full and correctly, in writing at a reasonable time before the binding documents come into force.
3.4. If a Franchisor requires the Individual Franchisee candidate to sign a preliminary agreement, the following principles shall be adopted.
- Prior to the signing of any preliminary agreement, the purpose of the preliminary agreement, the provisions that may be requested from the Franchisor for the expenses to be incurred during the preliminary agreement and due to the preliminary agreement must be given to the Individual Franchisee candidate in writing. When the franchisee agreement enters into force, such payments must be returned or counted to the possible starting price to be paid by the Individual Franchisee.
- The period and end format for the pre-agreement must be specified.
Franchisor may add confidentiality and anti-competitive articles to protect its identity and know-how.;
(a) Prior to the signing of any preliminary agreement, the purpose of the preliminary agreement shall be given in writing to the Individual Franchisee candidate, which may be required to pay the Franchisor for any costs incurred during the preliminary agreement and for any costs incurred therein. When the franchisee agreement enters into force, such payments must be returned or counted to the possible starting price to be paid by the Individual Franchisee.
SECTION 4: SELECTION OF INDIVIDUAL FRANCHISEE
The Franchisor, must select and accept persons as an Individual Franchisee, who, through reasonable research, appear to have sufficient basic skills, training, personal qualifications and financial resources to conduct the franchise business.
SECTION 5: FRANCHISE AGREEMENT
5.1. The franchise agreement must comply with country law, European Union law and this Honest Franchise Principles and any national annexes.
5.2. The agreement should reflect the interests of franchise chain members in protecting Franchisor's industrial and intellectual property rights and maintaining common identity and reputation. All agreements and arrangements relating to the franchisee relationship must be in writing, made in the official language of the country where the franchisee is located, or translated into the official language through a sworn translator. Signed agreements should be submitted to the Individual Franchisee immediately.
5.3. The franchise agreement shall regulate the mutual obligations and responsibilities of the parties and all other matters concerning the relationship without any uncertainty.
5.4. Important issues that should be included in the Agreement are as follows;
(a) Rights granted to Franchisor,
(b) Rights granted to Franchisee,
(c) Goods and services to be provided to the individual Franchisee,
(d) Franchisor's obligations,
(e) Individual Franchisee’s obligations,
(f) Conditions for payments to be made by the individual Franchisee,
(g) Duration of the agreement, which must be long enough for the individual Franchisee to issue its first investment,
(h) Conditions for renewal of the Agreement,
(ı) Conditions that entitle the franchisee to transfer and sell the franchise business, and the Franchisor's first possible purchase right,
(j) Individual Franchisee's conditions for using Franchisor's distinctive signs, trade name, trademark, service mark, shop signs, logo and other distinctive signs,
(k) The right of the franchisor to adapt the franchise system to new and changing methods,
(l) Conditions for termination of the Agreement,
(m) Conditions of delivery of material and immaterial property of Franchisor or other persons following termination of the Treaty.
SECTION 6: HONEST FRANCHISE PRINCIPLES AND MASTER FRANCHISE SYSTEM
These Honest Franchise Principles should be applied to the relationship between the Franchisor and the Individual Franchisee, as well as the relationship between the Master Franchisee and the Individual Franchisee. It should not be applied in the relationship between the Franchisor and the Master Franchisee.