This column is extracted from a speech addressed to the Belgian Minister of the 'Classes Moyennes' (small and medium sized enterprises), Sabine Laruelle. The speech referred to the adoption in Belgium of a law on pre-contractual disclosure information aimed at commercial networks of independent entrepreneurs and already referred to as the 'Loi Laruelle' (in force since 1st February, 2006), which the BFF has monitored very closely in an atmosphere of constructive collaboration with the Minister. This law is not specific to franchising, but includes it in its scope of application.

The purpose of the Belgian Franchise Federation (BFF) is to federate the networks of franchises operating in Belgium around projects of specific interest, founded on shared values and commitments. These values are part of the philosophy and operational dimension of the manner in which the BFF defines and promotes a 'franchise system'.

The philosophy is drawn essentially from the European Code of Ethics for franchising, the first cornerstone upon which the BFF has built itself. This Code expresses all of the values to which a franchiser should conform to in order to put into practice authentic and ethical franchising. These values contribute to guaranteeing the balance of relations between the parties.

The BFF devised a pre-contractual disclosure document for its franchiser members 10 years ago, which must be submitted to the BFF to accede to membership. Therefore, when the present Belgian government expressed its wish to regulate franchising, the BFF stepped forward to try and convince the Minister not to regulate the franchise contract itself, but rather to promote pre-contractual information disclosure, in line with the BFF's established practice with its own franchisor members.

In effect, the BFF's experience, compounded by the experience of those countries in Europe which have already adopted pre-contractual legislation (France, Spain and Italy), pointed to the relevance and validity of this option, as opposed to regulating the franchise contract.

Regulating the relation between the partners would inevitably have induced unbearable constraints, detrimental to the contractual freedom to contract, and therefore to the spirit of initiative and enterprise.

Having achieved this, the Loi Laruelle does nevertheless inspire reflection. Indeed, the magic of the changes that this law will induce will benefit commercial partnerships, including franchising, if only because its application will lift all risks of 'vices of consent'.

Strengthened by its convictions, and aware of the need and interest in gathering the information on all of the networks that practice franchising, the BFF has endorsed the initiative by ENJEU, the company that organises the Belgian franchise fair, to launch a survey on the franchise and commercial network sector. This first study, published in March 2006, is essentially a quantitative study.

Ernst and Young, associate members of the BFF, will lead the study and will work in conjunction with the business school HEC Consulting (Liège). The objectives of this study are:
• to quantify the networks of 'commercial partnership', all forms included (not just franchises);
• identify those that claim to be franchises;
• profile these franchise networks in terms of annual turnover and employment;
• evaluate the capacity of these networks to create employment;
• make an initial evaluation of the knowledge that these systems have of the new Loi Laruelle;
• set the premises for further qualitative surveys with the view of getting the BFF to induce the greatest number of networks, including start-ups, to practice authentic and ethical franchising.

In parallel to the new law, a Royal decree has created the Arbitration Commission mentioned in the law. The BFF will be represented in this Commission, and I hope that the survey I have just referred to will shed light on the positive effects that the Loi Laruelle will have on commercial partnership networks in general.

As well as chairing the Belgian Franchise Federation, Didier Depreay owns the Belgian Master Franchise of French croissanterie concept Point Chaud.
The Belgian Franchise Survey may be purchased from the Belgian Franchise Federation (in French or Dutch).
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