JFA's Code of Ethics
Japan Franchise Association Code of Ethics
Japan Franchise Association Code of Ethics is a code by which all the members of the Association, desiring the healthy development of the franchise business, promise to conduct themselves.
Franchisors who are members of Japan Franchise Association, to endeavor for the franchise system’s healthy, effective development and proliferation, to maintain sound, mutually beneficial business relationship with franchisees, and hand in hand with franchisees to contribute to the promotion of consumer interests, respond to the needs of the society, and improve credibility and business performance, hereby pledge to uphold the following provisions:
1.Proven experience and track record
Any good, service or know-how that the franchisor provides to the franchisee in exchange for consideration shall be evidenced by past experience and track record.
2.Provision of accurate and sufficient information
When recruiting franchisees, the franchiser shall provide accurate information and shall avoid excessive advertising or misleading representation.
The information that the franchisor furnish those who may wish to become a franchisee with shall contain such matters as details of the franchise agreement, past business performance of the representative unit, required investment for the franchisee and projected income of the franchisee, and shall be sufficient enough to decide whether or not to obtain a franchise.
When selecting a franchisee, the franchisor shall thoroughly examine the candidate’s ability, personality, financial resources, motivation, etc., and determine whether the candidate is qualified to act as a franchisee.
4.Understanding of and agreement on contractual substance
The franchise agreement shall clearly stipulate in writing detailed rights and obligations of the franchisor and the franchisee, and shall be executed on the basis of comprehensive understanding of and substantive agreement on the contractual contents by both parties.
5.Assurance of quality and preservation of reliability
The franchisor shall recognize that the logo or the service mark symbolizing the franchisor’s franchise system serves to assure the quality of goods and services which the franchisee sells, provide the franchisee with raw materials, goods and services of good and consistent quality, and oversee that the quality of goods and services which all and any franchisees sell is at all times good and consistent.
The franchisor shall seek to amicably resolve consumer complaints on quality, responding to consumers’ reliance on the franchisor’s logo or service mark.
6.Continuing development, improvement, and provision of guidance and assistance
In order that the franchisee may generate a reasonable profit constantly, the franchisor shall at all times endeavor to develop and improve goods and services, research and develop management know-how, and provide the franchisee with continuing guidance, assistance and input of information.
7.Compliance with relevant laws and regulations
The franchisor shall commit to comply with relevant laws and regulations, shall not infringe the logos of others or perform an act which constitutes unfair competition, and shall endeavor to prevent the franchisee from engaging in such unlawful activities.
8.Protection of logo or service mark
The franchisor shall recognize that the protection of the logo or the service mark symbolizing the franchise system is a common interest of both the franchisor and the franchisee and shall use the best efforts to prevent any infringement or unfair competition by third parties.
9.Facilitating performance of obligations
The franchisor shall endeavor to provide the franchisee with necessary guidance that facilitates the franchisee’s performance of contractual obligations and to maintain enough communication that prevents occurrence of conflict with the franchisee.
Should the franchisee breach the contract, the franchisor shall not terminate the contract before making an effort to remedy the breach by way of giving sufficient notice to the franchisee.