Some of the best-known franchises are restaurants. McDonald’s, Subway, Domino’s, Wendy’s, Buffalo Wild Wings, and others have thousands of locations. If you have a popular restaurant, you may be thinking of expanding to multiple locations. While you can choose to take on the work yourself, open more restaurants, and hire managers to run them, you […]
Your franchise has launched, and you are actively marketing and selling to franchisees in compliance with all applicable laws. There is no more need for legal advice or so you think. However, under federal and state franchise laws, there are ongoing registration and filing obligations. These include the following: Annual Franchise Disclosure Document (FDD) Updates […]
As we start the new year, many people are thinking about getting fit as their resolution for 2020. The health and fitness industry in the U.S. generates more than $30 billion in revenue and is growing every year. A big part of that revenue is driven by franchises. Entrepreneur’s 2019 Franchise List includes five fitness brands in […]
Franchise sales laws are highly specific. It is essential to have the assistance of an experienced franchise attorney to help ensure compliance.
Item 11 of the Franchise Disclosure Document is where franchisors are required to outline their obligations to help support franchisees before and after operations begin. Part of this assistance involves loaning the franchisee a copy of the franchisor’s operations manual (“Operations Manual”). The Operations Manual is a detailed document containing information on the standards and […]
Before deciding whether to make financial performance representations, franchisors should consider these things.
Item 7 of the Franchise Disclosure Document (FDD) requires franchisors to set out in a prescribed tabular format a franchisee’s estimated initial investment – i.e., all the expenses required by the franchise agreement and all other costs necessary for a franchisee to commence business. These costs go beyond the fees in Item 5-Initial Franchise Fees […]
There are 4 main types of franchise models for business format franchising: Single Unit, Multi-Unit Development, Conversion, and Master Franchise. We discuss the benefits of each for a prospective franchisor.
The Franchise Disclosure Document (FDD) provides a significant amount of information about the franchisor and franchise system as noted previously. Among the most important items in the FDD are the business terms between the franchisor and franchisee. These are encompassed in Items 5, 6, and 12 of the FDD, which set forth the fees and […]
Once you have decided to expand your business through franchising, one of the next steps is to create the Franchise Disclosure Document (FDD). The FDD contains information about the franchisor and the franchise system. The Federal Trade Commission and state regulators require franchisors to provide this information to potential franchisees to help them make an […]
Once you have decided that you have a “franchise-able” concept, next you must determine whether franchising is the right step for you. Becoming a franchisor requires a substantial investment of time and money, but the rewards can be well worth it. Before you move forward, consider these factors to help you decide if you are […]
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 […]