Bringing Your Franchise to the United States
Expansion to The United States
The United States market affords international brands unique advantages for brand expansion.
Our step-by-step Franchise Launch Program for international brands will afford your management team and brand with a strategic advantage in entering the United States market.
The program will allow your brand to legally and strategically enter the US market, sell franchises in the United States, limit corporate liability, comply with federal and multi-state franchise laws, and become a seasoned system in the United States.
Through the Franchise Launch Program, our team acts as your in-house US-based counsel and, over time, will empower your executive team to act with experience in the United States market.
What is the US Franchise Launch Program?
It a complete development program that our team has developed to assist and represent international brands that have experienced success in their home markets and are now ready to expand in the United States.
There is a formula and process for successfully entering the United States market and our Franchise Launch Program will allow your team to achieve success through the strategic legal and franchise development services provided by our team.
Services Included in the US Franchise Launch Program
Through our US Franchise Launch Program we serve as your United States legal counsel and, essentially, operate as a part of your management team. The program is offered at a flat fee, so there are no surprises and no hourly billing - just a great working relationship focused on your brand. Best of all, the program combines the elements necessary for successfully entering the United States market and, most important, avoiding the unnecessary pitfalls and mistakes that many international brands make when entering the US market.
Although each engagement requires a specific retainer proposal, the following services are included in our Franchise Launch Program.
Understanding Your Brand Vision and Building a Working Relationship
Our first step is to understand the vision for your brand in the United States. To get started, we structure a number of conference calls to build a working relationship with your team, understand the history of your brand, and to understand your team's vision for US franchise expansion.
Throughout our relationships, we schedule ongoing consultations and development calls and, over time, we build a relationship where our team will feel like a part of your team and, in many ways, serve as your US base of operations.
Developing Your Strategic Franchise Roadmap
Once we understand your brand vision and the goals, we develop a roadmap for successfully establishing your franchise system. This roadmap not only follows our franchise industry best practices that we implement for all franchise systems, but also contains strategic steps that are unique to the attributes of your brand, system, and goals. Our strategic guidance is ongoing through the development process, and includes:
- Evaluating your brand and potential US trademark protection;
- Preparing a competitive study where we model out and compare franchise metrics of two to three competing franchise brands in the United States;
- Evaluating your supply chain for purposes of legal disclosures;
- Preparing a proposed development model that addresses key metrics, including your initial franchise fee, royalties and royalty rates, brand development fund fees, and protected territory structures; and
- Evaluating your state expansion strategy and setting goals for registration within the US franchise registration states. For additional information on the franchise registration states, click here.
Establishing Your US Legal Infrastructure
Establishing Your US Subsidiary and Protecting Your Brand
Once we complete the franchise roadmap that meets the brand goals of your team and our requirements for a successful franchise launch, we establish your United States corporate subsidiary and protect your trademarks. At this stage we:
Work with your team as to the establishment of a United States corporate structure. Depending on the input of your team and accounting advisors we will establish a corporate structure within the United States. Typically we will establish a corporation or limited liability company in Delaware or Texas. However, the state of incorporation will be influenced by your expansion strategy, where your team is focused on franchise sales and, potentially, where you may base future US operations. We will work closely with your accounting team and if you do not have a US based accounting advisor we are glad to provide recommendations. Your US based corporate entity will serve as the franchisor in the states.
Review your existing trademarks and trade names and apply for United States trademark registration with the United States Patent and Trademark Office. Typically we will have the trademark application filed on behalf of your primary corporate entity and not your United States subsidiary.
We do this for legal protection purposes and will structure a trademark license agreement from your primary/parent entity to your new US based subsidiary.
Establishing Your US Subsidiary and Protecting Your Brand
Developing Your FDD
Multi-State Franchise Compliance
In the United States there are multiple levels of franchise regulation, so we structure your franchise compliance program at both the federal level and at the state level.
In the United States, franchise compliance requires that a franchisor disclose and provide a prospective franchisee with a Franchise Disclosure Document ("FDD"). The FDD provides extensive disclosures about your franchise offering and must meet federal requirements issued by the FTC.
Multi-State Franchise Compliance
In addition to federal law, a number of states have issued their own franchise regulations and requirements and certain states known as the "Franchise Registration States" require FDDs to be reviewed and registered at the state level. Franchise regulation in the United States is very much a "patchwork" of multiple federal and state rules and registration requirements. Through our Franchise Launch Program we will be preparing your FDD as a multi-state compliant FDD that meets federal requirements and includes modifications and supplements for the various states.
We also include the registration of your FDD in states that you specify. What does this all mean? Your FDD will be ready to go at both the federal and state level and there will be no guesswork.
Your US Franchise System is Ready to Sell
Once we launch your system, you will be ready to sell in the United States, including the specific states that you have identified for franchise registration. We will review the franchise sales process and steps to franchise disclosures. At the launch stage:
- You will be ready to sell in the non-registration states which include: AL, AK, AZ, AR, CO, DE, D.C., GA, ID, IA, KS, LA, MA, MS, MO, MT, NV, NH, NJ, NM, OH, OK, OR, PA, TN, VT, WV, WY
- We will have filed for registration within the franchise registration states that you have designated. Franchise registration states include: CA, HI, IL, IN, MD, MI, MN, ND, NY, RI, VA, WA, WI
Value Added Industry Support
The time that your franchise system launches is also the best time for our team to work together. So, we will work to keep your team informed about industry developments, introduce your team to other franchise industry professionals including franchise brokers, franchisor organizations, franchise PR companies and, also, to our own clients. Some of our value added includes:
Working together on your first franchise sale
As part of our franchise launch program, after we launch, our team will work together with you on the disclosure and legal aspects of your first franchise sale. We will assist in disclosing your first franchisee, setting up your electronic FDD disclosure process, and preparing the franchise agreement for your first franchisee.
Invitations to our client events
Throughout the year, there are franchise industry events and conferences. We host client dinners and mastermind events where our clients meet one another, build relationships, and share best practices.
Optional Franchise Development Services
The services outlined above are complete and will allow your team to successfully and legally establish and launch your US based franchise system. If your team requires non-legal support, we also offer the following development services through our franchise development company Franchise Growth Labs:
Operations Manual Support
The operations manual is a core component to US-based franchise systems. The manual provides detailed information to franchisees about the "how-tos" of franchised business and critical information about system and supplier requirements. If you need assistance, our US-based team will assist in the preparation of your operations manual.
Digital Media Development
At launch, franchisors should have a franchise sales process in place, including base media designed to inform franchise brokers about your franchise system and to educate and inform prospective franchisees. Our initial media development includes development of broker one-sheets, a digital franchise opportunity guide, copy assistance with the franchise opportunity page of your website, and assistance in establishing a multi-sequence drip campaign.
We would be glad to learn more about your franchise system and to understand your team vision for expanding in the United States. We would be glad to schedule a team conference call and to provide you with a detailed and completely fixed fee proposal for our Franchise Launch services.
To learn more about our firm and how we help brands grow in the United States, contact us today.
Also, learn more about what our clients have to say about us on the web.