3 Factors to Consider before Franchising Your Business
Have you found success with your business and want to take it further, much further? Franchising may be the option for you. As a business owner, you dream of seeing your brand become a household name; you envision hundreds, maybe even thousands of franchisees installed all across the nation and around the globe. You can make your dream a reality by formulating a solid expansion strategy for your business.
Becoming a successful new franchisor is easier said than done, however. You will have lots of legal paperwork and regulations to wade through and sort out. Not only that, you’ll also have to come up with the capital to invest in your venture.
Begin the journey to becoming a franchisor by considering the following factors.
Is Your Business Ready?
Do you have a good, unique concept for your franchise that will sell? Are your existing unit(s) pulling in profits? Have you done enough market research to confirm demand? Are you willing to relinquish some control to franchisees? Have you explored all other alternatives before determining that franchising is for you? If you have clear answers to all of these questions, you may just be ready to expand.
Fulfill All the Legal Requirements
Make sure you meet all the federal and state requirements for selling a franchise. If you make a misstep in this process, you may face costly delays, or worse, legal repercussions. To ensure that this doesn’t happen, it is highly advised that you consult with an experienced franchise attorney.
Formulate the Model for Your Franchise
Important considerations for your franchise model include fee and royalty percentage, terms of agreement, size of territory awarded to each franchisee, geographic areas in which you are willing to offer franchises, the specifics of your training program, and more. Be detailed-oriented and think about the context in which your franchise will find the most success.
Want to get the full rundown on how to franchise your business in today’s fast-moving world? Read “How to Expand and Protect Your Business Through Franchising” a comprehensive guide written by national franchise lawyer, Charles N. Internicola, Esq.
By Charles Internicola April 16, 2015
Franchise ChannelWhat Our Clients Say About The Internicola Law Firm
- Business Transactions
- Buy a Franchise
- Corporate Counsel
- Firm News
- Franchise Your Business
- Grow Your Franchise
- Intellectual Property
- Partnership Disputes
- Start a Franchise
- Do You Need to Have Multiple Locations to Franchise Your Business?
- Don’t Hire a Franchise Consultant if you see these Warning Signs!
- When is the Right Time to Franchise Your Business?
- How to Improve Your FDD Item 19 Financial Performance Representations in 2021 and Beyond (With COVID Impact)
- Should You Create an Education and Training Business Instead of Franchising?