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What Does It Mean to Franchise Your Business?

It means that you are legally authorized to sell franchises to third-party franchisees whom you will train and who will duplicate your business and systems. When you franchise your business, you will have:

  • Prepared a franchise disclosure document (FDD) that complies with federal and state law;
  • Prepared the franchise agreement and other legal agreements that will support and govern your relationship with franchisees;
  • Developed the legal infrastructure to support your franchise system, including the formation of a franchising corporate entity and the registration of your trademarks;
  • Prepared a franchise operations manual that documents your systems and initial training and will guide franchisees in opening and operating their own franchised outlets; and
  • Registered and filed your FDD and franchise offering with the franchise registration and filing states.

Franchising your business is an ongoing process; after you launch your franchise you should be continuously working on improving and upgrading your business systems, your sales strategies for attracting qualified franchisees, and your ability to maintain quality control and operational profitability among your franchisees.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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