World Franchise Council Growing, Achieving Important Milestones

Council’s global growth reflects expanding constitution, key support of industry.

By Graham Billings

The World Franchise Council is the global organization of franchise associations supporting the development and protection of franchising and promoting a collective understanding of best practices in fair and ethical franchising worldwide. Its vision is to be the leading source of credible information for and about the global franchise community and preeminent forum for promoting collaboration and cooperation between national franchise associations.

Organization History

The WFC is a not-for-profit, non-political association of national franchise associations, incorporated under the laws of the United Kingdom in 2005.

The WFC’s beginnings can be traced to the first International Summit, sponsored by the Mexican Franchise Association in 1993, where a draft constitution of the proposed organization was developed by a multinational task force composed of the franchise associations representing Argentina, Canada, Europe, France, Mexico and the United States. The following year, during the International Franchise Association’s annual convention in Las Vegas, a group of national franchise association executives led by the IFA and the European Franchise Federation unanimously decided to establish the WFC.

Following that historic meeting, a working group led by the British Franchise Association, with representatives from the Canadian, Brazilian and Mexican associations, produced a more detailed draft of the constitution that was ultimately adopted in 1995 at its Lisbon meeting. The current constitution has been revised several times over the subsequent years to reflect changing needs and the increased work that the council has been able to undertake.

The constitution was drafted for the purpose of recognizing that the WFC’s most significant contributions would come from an international understanding and cooperation. The founding members of WFC believed that a formal constitution was essential to guarantee that its opinions represent a genuine consensus among its members and an assurance to properly constituted national franchise associations that the council would offer an equitable forum for members to represent their views.

Since its inception, the WFC has achieved many milestones:

• Unidroit: secured a common position on proposals for a model law on franchising.
• Principles of Ethics: reached consensus on the principles that should be followed by franchise associations in developing their code of ethics.
• Recognition of one association per country: stood by its commitment, which prompted the amalgamation of associations in the Philippines and the emergence of a single recognized association in Korea.
• Legislative Support: has passed a number of joint declarations during its biannual meetings that have been at the request of and in support of several member associations where regulation disadvantageous to franchising has been proposed. The most recent joint declaration was made in February at the council’s meeting in Las Vegas, urging governments to show restraint when considering legislation that could hinder the development of franchising in their countries.

Membership

Full membership of the WFC is open to all national franchise associations that are constituted as not-for-profit organizations and whose constitutions require and in practice have a subscribing membership with a majority composed of franchising companies or their representatives, provided they are considered by the WFC to be the prime industry body for the country or territory concerned. Their governing bodies must also have a majority composed of franchising companies or their representatives.

While each national franchise association will have its own code, all must have one that is consistent with the WFC’s requirements.

With one of its roles being the encouragement of franchising best practices, the WFC also accepts as associate members, national franchise associations which give a written commitment to work towards the council’s full membership requirements, provided that there is not an existing member in that country or territory.

WFC Meetings

The WFC members meet twice a year with national associations volunteering to act as hosts. It is during these meetings where much of the work and the invaluable exchange of information between associations take place. With associations from all continents (except Antarctica) being represented, every effort is made to move meeting locations around the globe. Many associations find that the hosting of as many as 70 of the leading figures in franchising from around the world has a positive enhancement for franchising in their country at both governmental and business levels.

The work of the council is carried out by the various secretariats that are filled by those national associations with both the time and resources to fulfill them.

All associations provide up to date information on the state of franchising in their country, with special regard to economic and legislative developments. This provides invaluable information to assist franchise systems that are members of WFC national associations and are seeking to export. The fraternal relationships between member associations can also play a role in providing personal introductions to the key people in those countries.

The first meeting this year was held in conjunction with the IFA’s convention in Las Vegas and in October, the Franchise Council of Australia will host the second meeting in Brisbane, to coincide with its own convention. In keeping with the global movement of meeting hosts, the 2016 meetings will be held in Italy and Indonesia.

The chair of the WFC is held by the chair of the most recent WFC meeting, currently IFA’s vice chairman, Aziz Hashim, with Waren Wilmot, chair of the FCA, as chair-elect.

Current members of the WFC are Argentina, Australia, Austria, Belgium, Brazil, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Finland, France, Germany, Great Britain, Greece, Guatemala, Hong Kong, Hungary, India, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, Netherlands, New Zealand, Philippines, Poland, Portugal, Russia, Singapore, Slovenia, South Africa, Sweden, Switzerland, Taiwan, Turkey, U.S.A., Venezuela and the European Franchise Federation. 

Graham Billings is General Secretariat of the Franchise Association of New Zealand. Find him at fransocial.franchise.org