IFA Self Regulation Program

In 1999, after a series of discussions with all three components of IFA’s membership – franchisees, franchisors, and franchise suppliers – the IFA Board of Directors determined that the current version of the IFA Code of Principles and Standards of Conduct ("Code") was not widely embraced by IFA’s members. The Board retained the Ethics Resources Center to assist IFA leadership in revising and adopting a Code that reflected IFA’s commitment to positive franchise relationships and embraced by IFA’s membership. Also, IFA’s leadership concluded that a number of additional components were necessary to support IFA’s overall goal of self-regulation for the franchise community.

These additional components included an enforcement mechanism to ensure compliance with the Code; an ombudsman program to facilitate dialogue between franchisees and franchisors when disputes arise in their franchise relationships; and innovative educational programs to provide the franchise community and franchise investors with the most comprehensive information to evaluate franchise investments and to achieve franchise law compliance. The IFA believes that these four components – (1) the revised IFA Code; (2) a streamlined Code enforcement mechanism; (3) a new ombudsman program; and (4) educational programs – create an integrated and effective program of self-regulation for the franchise community. When used in conjunction with existing programs like the Franchise Mediation Program (FMP), designed exclusively to assist in resolution of franchise disputes, the IFA Self Regulation program provides an effective alternative to litigation and legislation, both of which are costly, time consuming, and potentially destructive to franchising.