How to Franchise: What Does it Take to Franchise Your Business?
Your Guide to Franchising
When you decide to franchise your business the first thing we do is talk with you to determine if franchising is the right solution for your business. The most important questions are: Why do you want to franchise your business and what are your long term goals?
Franchising is not for everyone, there are advantages and disadvantages to franchising. We'll go over all the steps to franchising and explain what you need to know about the franchise disclosure documents. For the purpose of this brief guide to franchising, 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 it 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 is in the business of offering franchises.
- Register your trademark (logo/design and word mark) with United States Patent and Trademark Office.
- Begin to define the structure of your Franchise system.
- Prepare the Franchise Disclosure Document package (all the necessary Disclosure Documents required by the FTC so you can start offering franchises formally called the UFOC).
- Once the Franchise Disclosure Documents (FDD) package is completed, we will send this package to one of our Franchise Attorneys to review, make changes and file with it the proper state regulators.
- Funding the Parent Company - simply you will establish a bank account and transfer funds to that account to show how the parent company (the new entity we created) can support franchisees.
- Prepare unaudited Financial Statements by either your CPA or one of ours. This is one of the required exhibits for the FDD package.
- Provide you with all the necessary resource and support materials you will need once approved to start franchising. This includes Operations and Pre Opening Manuals necessary to present your operational procedures, systems and proprietary information in an organized fashion to franchisees.
- Create and define your applicant approval process, Discovery Day and assist with franchise training programs.
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 is your cost for the items mentioned above? We are sensitive to your needs to minimize costs. Our fees are minimal and all costs to franchise your business are set. Compensation for our services are broken down into different phases and you pay when each phase is completed as benchmarks are met. 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 compensation program gives clients added confidence in our services since the risk is shifted on us to perform for YOU.
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