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Franchise Matters Blog
Should You Franchise Your Business?
You have a successful business and are wondering if franchising makes sense. While there are many well-known and profitable companies, few become franchises. For every McDonald’s, Hertz, Choice Hotel, there are probably millions of businesses that could not and should not franchise. What makes a successful “franchise-able” business concept? The following factors are essential in […]
What are Gross Sales for Purposes of Calculating Restaurant Franchise Royalties?
Franchise agreements provide for payment of royalties in exchange for the franchisee licensing the rights to use the franchisor’s trademarks, logos, service marks and systems of operation. The amount of royalties is typically based on a percentage of gross sales, a specified minimum amount, or the greater of the two. Gross sales are generally defined […]
What is the Effect of Signing the Franchise Disclosure Document Receipt?
One of the first steps involved in buying or selling a franchise is the sharing of the Franchise Disclosure Document(FDD). Under federal and state law, the franchisor must give the FDD to a prospective franchisee. The FDD is intended to help ensure that franchisees can make informed decisions about whether to purchase the franchise. The last […]