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Code of Good Practice for Polish Franchise Market

By 14 September 2021 No Comments

Franchisees, franchisors, and industry organisations have adopted the Code of Good Practice for Franchise Market.

The Code of Good Practice is a joint project of the Polish Chamber of Commerce and the Polish Franchise Organization. Its patrons also include the Federation of Polish Entrepreneurs, Lewiatan Confederation, and Polish Chamber of Commerce. The Code has so far been adopted by franchisees organised in the Polish Association of Micro-Entrepreneurs and Franchisees and grocery store franchises Delikatesy Centrum, Lewiatan, and Żabka Polska.

“The Code was developed through the joint effort of organisations bringing together both franchisors and franchisees,” emphasises Monika Dąbrowska, President of Polish Franchise Organization. “This is a set of good practices for franchising that has the interests of local entrepreneurs at heart.

As stated in the official release of the initiators and signatories, “The Code of Good Practice for Franchise Market, a document that has been developed and signed by both franchisees and franchisors, recognises the enormous diversity of the franchising environment as a business model. Its purpose is to provide a framework for the best possible cooperation between franchisors and franchisees. The need to ensure the adequacy and universality of the Code for various franchise models and industries was the greatest challenge in the work on the Code. Its signatories believe that the solution achieved comes as close as possible to such universality.”

As the Code has been signed by the largest retail chains, it currently covers over 10,000 entities operating in the franchise market. “We already have declarations of intent regarding accession to the Code from other networks, including service networks. I am convinced that the list will be much longer, come the end of summer holidays,” says Maciej Ptaszyński, Vice-President of Management Board and Managing Director of the Polish Chamber of Commerce.

The project initiators have stated that the purpose of the Code is to define good practices, principles, and standards to be followed by franchisees and franchisors as part of their cooperation under the concluded franchise agreement, as well as prior to the conclusion and immediately after the termination of the franchise agreement. One of the important goals of the Code is to ensure that both parties to the franchise agreement have the adequate knowledge of the principles of cooperation that they should acquire and verify before the start of their joint business. In the opinion of the signatories, this is one of the key conditions of successful business partnership.

“Agreeing on a set of good practices for cooperation within a franchise is in the best interests of the entire community, both franchisors and franchisees, regardless of the differences in the specific franchise models implemented. Compilation of a list of good franchising practices and adherence to them will enable further effective development of this business model so that it remains a source of satisfaction with the business operated for both parties to the franchise agreement,” continues the release.

The franchisee representatives who worked on the Code are happy with it.

“As a representative of franchisees, I was actively involved in the work on the Code from the very start, chairing the working team. Having daily contacts with the other franchisees, I know that there was anticipation of such a document, comprising a set of good practices, principles, and standards. That is why I have a feeling of personal satisfaction at successful completion of the project, comments Paweł Tracz, President of Polish Association of Micro-Entrepreneurs and Franchisees. “As an association, we have incorporated very important provisions into the Code, among others regarding the need to make the franchise agreement available to the franchisee at least two weeks prior to signing it.

The list of signatories of the Code of Good Practice is still open. All entities operating in the franchise market in Poland are welcome to join in. The accession statement is available on our website kodeksfranczyzy.org.pl.

Documents available for download:

Code of Good Practice for Franchise Market