At ECS we regard the code of ethics, which are based on the European Code of Ethics for Franchising, as corner stone of our franchise operations. The Code is not meant to regulate all aspects of the franchise, but serve as an ideal for the franchise relationship. The mutual commitment of both parties to fulfil their obligations under the franchise agreement is fundamental to any franchise relationship.
A requirement for the Franchisor:
- to have operated a business concept with success, for a reasonable time and in at least one pilot unit before starting its franchise network;
- to be the owner, or have legal rights to the use of its trade name and marks;
- to provide Franchisees with initial training and continuing commercial and/or technical assistance during the entire life of the agreement;
- when recruiting Franchisees, to ensure:
- advertising is free of ambiguity and misleading statements;
- any publicly available recruitment, advertising and publicity material, containing direct or indirect references to future possible results, figures or earnings to be expected by individual franchisees, is objective;
- to provide the Franchise with a copy of the Code and full and accurate information material to the franchise relationship, within a reasonable time prior to requiring the Franchisee to sign any binding document;
- to select and accept only those individual Franchisees who, upon reasonable investigation, appear to possess the basic skills, education and personal qualities and financial resources sufficient to carry on the franchise.
A requirement for the Franchisee:
- to devote its best endeavours to the growth of the franchise business and maintenance of a common identity and reputation;
- to supply the Franchisor with verifiable operating data to facilitate the determination of performance;
- not to disclose to third parties the know-how provided by the Franchisor, during or after termination of the agreement.
A requirement for both parties:
- to exercise fairness in their dealings with each other;
- to resolve complaints and disputes with good faith and goodwill through fair and reasonable direct communications and negotiation.