Criteria for the admission of franchise systems to Croatian Association for franchising

The franchise system applying for membership to Croatian Association for franchising must:

1. Conform to the definition of a franchise system as defined in the EFF's Code of Ethics for Franchising as well as the principles that underlie a franchise systems focussed on the long-term and substantiated success of the parties to the franchise agreement and on the provision and transfer of substantial and tested know how from franchiser to franchisee during the term of the contract as well as the continuing provision of assistance. These principles include the obligation of both parties in disclosing to each other, before the signing of the franchise contract, all relevant information that will determine the engagement of the other party to the contract.¹
2. Prove to have created a franchise package and locally feasible concept through the operation of a pilot scheme. The pilot scheme can be run either as a company-owned store or as a franchise.²
3. Have a minimum one franchisee on the end of the first year membership in Croatian Association for franchising.
4. Have an agreement (a written contract) that complies with our national law, EU legislation and the EFF's Code of Ethics for Franchising.
5. State in writing its knowledge and acceptance of the EFF's Code of Ethics for Franchising. Compliance to the Code must be ongoing throughout membership to the Croatian Association for franchising.
6. Prove that its organisation and financial position offer enough assurance for continuity.

¹ This clearly and formally distinguishes franchising from other forms of looser chain-store distribution systems, which may include pure licence agreements, agency agreements, co-operative-type systems, etc

² A locally feasible concept is one that has the potential to be replicated with similar success in other parts of the country or regions.