Understanding a Franchisors Responsibilities | Internicola Law Firm

Franchisor Responsibilities

Before “starting a franchise” or “franchising your business” it is critical to evaluate and understand the role and responsibilities that you will be undertaking as a franchisor.

A franchise owner has responsibilities similar to a small business owner. The big difference is that the franchise owner has to operate under standards set by the franchisor. It is important to remember that not every business should be franchised. Not every business is successful, nor is every business person. Successful franchisors have made mistakes, and have survived them.

The Role Of A Franchisor

As a franchisor, basically, you will be taking what works and what has worked in your business and formalizing these systems and procedures so that they may be taught to and implemented by your future franchisees. Your “franchise agreement” will serve as the primary contract by which you grant third party franchisees the license and right to establish and operate your franchised business. Your role as a franchisor will include:

The Responsibilities Of A Franchisor

Before going into the franchise business, you should consider the ongoing responsibilities you’ll have to take on. You’ll need to have a great understanding of what your business requires to succeed.

As a “franchisor” your primary responsibility will be to support the operations of your franchisees and to continuously develop and monitor the business systems, products and/or services that have made your business a success.

As such, your franchisor responsibilities will include:

These are just some of the ongoing responsibilities that a franchisor may have.

For additional information about the roles and responsibilities of a franchisor contact Charles N. Internicola, Esq. at (800) 976-4904 to learn how to successfully convert your business into a franchise.

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