WHAT do McDonald's, Kall-Kwik, Flowers Forever, Pronuptia, Vision Express, Durham Pine and Unigate Dairies have in common?

As well as being household names, they are also franchises that you will find on most high streets in the UK.

In October, the spotlight falls on the franchise industry with the National Franchise Exhibition in Birmingham expecting to attracts thousands of would-be entrepreneurs.

Franchising is big business. There are more than 600 franchised operations. They have a combined turnover of £9.3 billion and employ more than 316,000 people.

And according to the British Franchise Association, franchising is the safest route for a start-up business, with 95 per cent of fledgling firms reporting profitability.

Yet despite its success, franchising remains one of the best-kept secrets of the business world.

The term 'franchising' has been used to describe many different forms of business relationships, including licensing, distributor and agency arrangements. The more popular use of the term has arisen from the development of what is called 'business format franchising.'

Business format franchising is the granting of permission by one person (the franchisor) to another (the franchisee), entitling the franchisee to trade under the trade mark/trade name of the franchisor.

A franchise adds considerable value to a business opportunity i.e. - the franchisee invests in an asset, which he/she can grow through his or her hard work and diligence. It is saleable and transferable (within the terms of the franchise agreement) and, if you invest in a good franchise.

Each business outlet is owned and operated by the franchisee. However, the franchisor retains control over the way in which products and services are marketed and sold, and controls the quality and standards of the business. The franchisor will receive an initial fee from the franchisee, payable at the outset, together with on-going management service fees - usually based on a percentage of annual turnover or mark-ups on supplies. In return, the franchisor has an obligation to support the franchise network, notably with training, product development, advertising, promotional activities and with a specialist range of management services. THE BRITISH FRANCHISE ASSOCIATION

The British Franchise Association (BFA) evolved from the franchise industry itself in 1977, as the only voluntary accreditation body for franchising in the UK. Its remit is to develop and continuously improve the standards of good practice in franchising and to accredit franchisors who meet these standards.

The BFA accredits franchise companies for membership on the basis of a strict standards structure. However, it is important to note that the BFA's detailed checks concern the company's fitness to franchise rather than the suitability of, and prospects for, a particular product or service for a particular market.

Alongside the BFA's reputation for high franchising standards, which in turn works to enhance the image of its members and their businesses, the BFA offers many services and benefits to support members and provide all levels of help for prospective franchisees:

The BFA assist members with recruiting good quality franchisees. They provide many marketing platforms, including Franchise Link magazine, exclusive to BFA members. The BFA website also provides a direct link to its members for prospective franchisees who are shopping for franchisors 'on line'.

Dedicated Website - www.british-franchise.org.uk How to choose a franchise

1 YOU should first consult the British Franchise Association (BFA) - the only independent accreditation body for franchising within the UK.

The BFA Franchisee's Guide and free video 'Your Introduction to Franchising', provide a wealth of step-by-step information. More than 33% of franchisees buy this unique, independent guide before making their decision.

2 The BFA also recommend you attend an accredited Franchise Exhibition. Exhibitions provide the ultimate opportunity for you to gain good advice and meet good franchisors. The National Franchise Exhibition, 5-6 October 2001, NEC, Birmingham.

3 How viable is your potential franchise brand product/service i.e. will it be easy to market or sell in your specific region? Can the company provide evidence of a sound business with proof of at least one successful franchised outlet and no significant record of failures?

4 Cross examine yourself. How much time and financial commitment can you give? What are your expectations? Have you spoken to other franchisees to hear their experiences? At the end of the day, you as the franchisee must be prepared to be realistic. Many franchisees have risked their home, savings and family

relationships by investing in business, consumed by dreams of becoming successful business owners. The secret is to err on the side of caution and do your homework.