So you are doing your research and you think that franchising might be the direction you’d like to take your business. But nobody is giving you answers and explaining what is involved. You don’t understand what you need to do!
NO WORRIES! We’re going to take away the cloud of mystery and cover the basic processes necessary to franchise your business. Regardless of what type of business you have, the process to franchise is the same. We break it down into 6 simple steps.
Step 1
We create an entity – a separate entity will be created that is strictly in the business of franchising. This will segregate liability between your existing company and your franchising activities.
Step 2
We register your word mark and your design/logo with the United States Patent and Trademark office.
Step 3
We prepare your Franchise Disclosure Documents (FDD), formally known as UFOC. Keep in mind this document is prepared in house and each FDD is unique and different. We do NOT use templates. The FDD has the following elements:
- Includes the “Disclosure”, the foundation of your franchise opportunity. This addresses areas such as: what are the start-up costs; inventory, products & supplies needed; working capital; what is included in the franchise fee; what products and services the franchisee can and/or can’t offer, etc. (Don’t worry! You don’t need to have the answers to all of these items. We will determine the answers to these items and other questions as we work together).
- Franchise agreement – takes the Disclosure and breaks it into greater detail, defining the terms of the Franchisor/Franchisee relationship.
- Exhibits & Schedules that support both the Disclosure and Franchise Agreement.
Step 4
We deliver your FDD to one of our Franchise Attorneys. We have franchise attorneys nationwide. The Franchise Attorney will review these documents, edit, make changes and if necessary, file these documents in your state (more on this later).
Step 5
At this point you will need to fund your franchising company (the new entity described above). Contact us and we can explain details on how much you should plan on funding your franchising company.
Step 6
We provide you with one of our CPA’s who will prepare an audited set of financials for your franchising company (a necessary exhibit of the FDD).
This is just a quick snapshot of the steps involved to franchise your business. We quarterback the entire process and we are with you every step of the way. Yes, the process is simple, but requires the experience and thoroughness of a franchise development company, like The Franchise Maker, to make the process EASY!
If you are talking with another company to franchise your business and that company does not involve franchise attorneys…. turn around and RUN!!
