If your business is growing, you may be considering franchising. There are many steps to take when franchising a business. But first, you should learn about the many pitfalls to avoid. Understanding what is required of you and what mistakes can hurt your business is key to a successful franchise.
If you have a successful business with a recognizable brand, it may be time to franchise. Franchising is one of many options to build and expand a business. It involves incorporating what has worked for your business into a legal framework. Then, you will allow others to use your business model, utilize your trademarks and follow your business systems.
Here are a few factors to consider when franchising your business:
- Should you franchise? You must have a successful business that has systems that can be copied by franchisees. You must be ready to become a manager and let others use your model.
- What regulations should you be aware of? Franchising is a regulated industry that has federal and state rules to consider. You must work with an experienced franchise attorney to ensure that you abide by regulations that could limit your expansion.
- What type of franchise fits your business model? Each business is different. You must create a franchise system that fits your business and business model.
- Do you have a trademark? Perform a quick search to determine if your trademark is eligible for protection.
- What are your critical systems? Write down how you order, display and market your product. This type of information will be shared with future franchisees.
Franchising is not for every successful business, but it is a great way for some business owners to create additional revenue streams. If you have a recognizable brand with a business model that can be replicated, make sure you discuss your options with a New York business lawyer who has helped similar businesses grow. Contact the attorneys of The Internicola Law Firm, P.C. at (800) 976-4904 to discuss your future.