On 11 October 2010, the Environment Agency published revised guidance on how the CRC Energy Efficiency Scheme (CRC) applies to franchises. The original guidance was issued on 15 June 2010. The guidance sets out the rules for defining franchises under the CRC and gives examples of franchise arrangements within different industry sectors.

The revised version of the guidance is not substantially different to the earlier version. The only changes of substance are the inclusion of an additional example on the rule about the use of the franchisor's name (example 8A) and an additional note (note 4 to rule 2) on car dealerships.

Example 8A describes a situation where a franchisee displays the franchisor's name and branding alongside its own but it presents itself to the public as an independent business from the franchisor. The example shows that if it is clear that the only connection between the franchisee and the franchisor is that the former sells the latter's products, then this arrangement will not amount to a franchise agreement within the definition in paragraph 9 of Schedule 1 to the CRC Energy Efficiency Scheme Order 2010 (SI 2010/768) (CRC Order).

Note 4 to rule 2 says that where a car dealership markets itself as an independent brand, the premises from which it operates are unlikely to satisfy the requirement that they have an internal or external appearance agreed by the franchisor and similar to that of other premises operating a franchise business under an agreement with the franchisor. Such an arrangement is unlikely to fall within the definition of a franchise agreement in the CRC Order.

For more information, see:

Source: Environment Agency guidance: CRC Energy Efficiency Scheme: Defining franchises.