A: Franchising is a business and distribution model that permits a successful business owner and entrepreneur to achieve unit expansion (regionally or nationally) through the the utilization of franchisee capital and managerial effort. That is, franchisees establish their own operations and franchise units and, in doing so, assist with the expansion of your business. Franchising is not right for everyone and when determining whether or not you should franchise your business, some of the factors that you should consider and evaluate, include:
Whether or not you business is consistently profitable;
Whether or not you have established "systems" for the operation of your business;
Whether or not you have trademarks / trade name that are recognized by consumers and may be legally protected;
Whether or not you have the capital to establish an infrastructure for the training of franchisees and the preparation of necessary Franchise Disclosure Document
There are many other factors to consider, however, as a "prospective franchisor" the primary issue becomes whether or not your business, and systems may be taught to franchisees and whether or not your business may be "profitably" replicated by franchisees.
Below is additional information you may find useful when franchising your business:
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you
and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
