Like most of the important things in life and in business‚ really significant tasks like franchising seem a lot harder than they really are.
As a franchise lawyer and franchisor myself‚ I can assure you that the biggest franchise failures that I see are the franchises that never launch and never get started. Sure franchising is a significant task and does require capital but once you get started by putting together a plan of action and then taking action‚ you will realize that the goal of franchising your business is readily achievable and well within reach. So lets discuss these two points "a plan of action" and "taking action":
- A Franchise Plan of Action – For sure franchising is a regulated industry with both State and Federal disclosure and registration requirements that must be satisfied. These requirements are focused on the development and registration of your Franchise Disclosure Document ("FDD"). Your franchise plan of action must include working with an experienced franchise lawyer who will develop your FDD and prepare your state based registrations. You really need someone experienced and should avoid a "do it yourself approach". Consider that more often than not my law firm is consulted and hired to "fix" bad FDD's that either never got done or‚ worse‚ turned out to be poorly prepared and created litigation liability for the start-up franchisor.
- Taking Action – Once you have the right plan and confidence in the professional that you are working with‚ the next step is to take action and work toward the development and launch of your franchise. Here to I can also tell you that many would be franchisors – entrepreneurs with great businesses – fail to take action‚ get distracted by their business or get caught up in unnecessary delays.
As a business expansion model‚ franchising is certainly a proven formula. So‚ if franchising is the right expansion route for you‚ consider that you need to adopt the right plan and then take action.