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Is Franchising a Good Idea?

Understanding How Franchising Works

Yes‚ but the answer will‚ ultimately‚ depend on your business‚ your business goals and your personal goals.  First‚ lets be clear and understand that “franchising” is‚ indeed a proven business expansion model.  Franchising is a legally recognized (and regulated) business model that permits a successful business owner to achieve the multi-unit expansion of his or her business.

As a franchisor you will  take what has worked for you  – the marks that you use to identify your business‚ the methods that you utilize for operating your business and the unique products and services that you offer through your business – and create formal “business systems” that you will teach to future franchisees who will‚ hopefully‚ replicate the success of your business.

The answer to your franchising question has a lot to do with you.  

So‚ Start off with an honest assessment of your business:

  • whether or not your business has a successful track record;
  • whether or not you have developed “systems” that may be taught to franchisees;
  • whether or not you believe that your franchisees will be profitable; and
  • whether or not you are looking to expand your business.

It is also important to understand that franchising is a regulated industry and to successfully establish a franchise system‚ you must comply with federal and state franchise laws‚ starting with the preparation of a franchise disclosure document (“FDD”).  However‚ if done correctly‚ satisfying your legal obligations – including the preparation of your FDD can prove to be a tremendous opportunity for refining your business systems.

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Learn more about franchising your business here.

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By Charles Internicola July 2, 2010

Franchising Guides

The Ultimate Guide to Franchising Your Business

New to franchising? Do you want to learn more about franchising your business, where to start, the steps, and how to know if you are doing it right?

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Is Your Business Franchisable and Should You Franchise?

Franchising may be the next big step for your business and represents an opportunity to grow your brand. So, how do you know if franchising is right for you? How do you know if your business is franchisable and, if it is, whether or not you should franchise your business? To answer these questions you must evaluate whether or not your business is franchisable and, if it is, whether or not your individual goals and your business goals align with franchising and establishing a franchise organization responsible for on-boarding, training, and supporting franchisees.

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Licensing Vs. Franchising

When considering expanding a business both franchising and licensing are possible options. Each option however comes with different rules and regulations. Prior to moving forward with franchising a business or licensing a business it is important to understand the differences and how each may have an affect on you.

Franchise Lawyer Charles N. Internicola wrote “Licensing versus Franchising” for the very purpose of allowing successful business owners to understand the difference between licensing a business and franchising a business.

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Guide to Selecting a Franchise Lawyer

If you have questions about franchise lawyers, what they do, how they can help, the cost, and how to select the right franchise lawyer for you, then this guide will help.

Franchise lawyers advise and represent individuals and businesses on legal issues that involve franchising a business, preparing an FDD, filing and renewing FDD registrations, buying a franchise, and litigation involving the franchisor and franchisee relationship. The role of a franchise lawyer varies depending on whether he or she represents the franchisor or the franchisee.

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Item 19 Financial Performance Representations

Check out our guide where we discuss how to plan and properly disclose Financial Performance Representations in your FDD.

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Franchise Sales Compliance Guide

Are you a franchisor or a part of a franchise sales team? Do you want to learn more about franchise sale compliance and ensure that your sales practices comply with franchise laws and are consistent with best practices? Then this guide is for you.

In this guide you’ll learn the fundamentals of franchise sales compliance including the franchise laws, regulations, and best practices that your team should have in place for every franchise sale.

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