How to Franchise: What Does it Take to Franchise Your Business?
You have questions, we will give you direct answers with no smoke and mirrors. The most common question is “How do I franchise my business and is it difficult, expensive and time consuming?” When you contact us you will have all these answers and more with a clear understanding of exactly what it will take to franchise your business. The first thing we will do is talk with you to determine if franchising is even the right solution for your business.
Franchising is not for everyone, there are advantages and disadvantages to franchising. We'll go over all the steps to franchising and explain to you what you need to know about the franchise disclosure documents. For now, let's talk about the process involved in order to franchise your business.
There are several steps to franchise development. Below is a simple outline of the various steps necessary in order for you to start franchising immediately. As we begin to talk, you will realize that we have broken each step into easy, manageable phases. Our job is to make franchising your business QUICK & EASY for you.
When you're ready to franchise your business, we will. . .
- Create an entity for the parent company. This is the company that will be in the business of offering franchises;
- Register your trademark (logo/design and word mark) with the United States Patent and Trademark Office;
- Structure your franchise system and put together your Franchise Disclosure Document package (all the necessary Disclosure Documents required by the FTC so you can start offering franchises);
- Give this package to one of our franchise attorneys to review, make changes and file it with the proper state regulators;
- Provide you with instructions on funding your parent company;
- Introduce you to one of our accountants who will prepare audited financial statements. This is one of the required exhibits for the FDD package;
- Provide you with all the necessary resources and support materials you will need once approved to start franchising. This includes Franchise Operations and Pre-Opening Manuals necessary to present your operational procedures, systems and proprietary information in an organized fashion to your future franchisees; and
- Create and define your franchise applicant approval process, Discovery Day and provide you with ongoing assistance as you award franchises.
That is it. Do you need a large staff for the parent company? In a word: No. We encourage you to start out slowly and expand as your franchise business dictates. We always recommend that you begin to offer franchises in your own State and surrounding States for the first year to keep things at an arms-length distance.
So what does it cost to franchise my business? Not as much as you think, we are sensitive to your needs to minimize costs and would rather see you spend money on advertising and marketing your franchise when we are finished. Our fees are minimal and all costs to franchise your business are a FLAT FEE. Compensation for our services are broken down into different phases and you can choose to pay when each phase is completed. This is a Pay-As-You-Go program where you do not have to commit to a large sum up front. We will be happy to explain this to you in greater detail when you contact us. Our Pay-As-You-Go program gives clients added confidence in our services since the risk is shifted on us to perform for YOU.