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What is Franchise Development and Franchise Development Companies?

What is Franchise Development?

Franchise development is the legal and business planning process and steps necessary for turning a business into a franchise, selling franchises, and growing a system of franchisees that develop and open new franchise locations under a common brand, training requirements, and system standards.

Franchise development includes the following steps and processes:

1. Franchise Assessment

Determining whether or not a business is franchisable and, based on industry factors, financial performance, available capital, and growth goals, whether or not a business should be franchised.

2. Legal Compliance

Developing, issuing, and maintaining a registered Franchise Disclosure Document, preparing Item 19 financial performance representations, complying with the franchise laws, protecting trademarks, and enforcing franchise agreements that create and maintain a franchisor-franchisee relationship.

3. Forming Your Franchise Company

Forming a new franchise company that will offer and sell franchises, training and support of franchisees and generate revenues comprised of franchise fees, royalties, and other franchise related activities.

4. Operations Manual Development

Developing and maintaining a franchise operations manual that advises franchisees of training requirements, system standards, and on-going requirements related to the development and operations of the franchised business.

5. Sales Strategy and Brand Positioning

Setting a franchise sales strategy and building website copy, digital, and video media that communicates the value proposition of your franchise offering, differentiators, brand story, and franchisee transformation.

6. Franchise Sales Discovery Process

Developing franchise sales processes, presentations, landing pages, and media that engages with franchisee candidates, informs them about the potential advantages of the franchise offering, and guides them through a discovery process where both franchisor and prospective franchisee evaluate if they are a good fit.

7. System Growth Strategy

Training, coaching, and monitoring franchisee performance, enhancing brand standards, and implementing KPI driven improvements, marketing initiatives, and system standards focused on improving customer experience and increasing system-wide sales and profitability.

Looking for Help With Your Franchise Development? Contact our team at (800) 976-4904 or by email and let's discuss how our legal + franchise development growth services can help you Win at Franchising!

What is a Franchise Development Company and Franchise Developers?

Franchise development companies are businesses that provide assistance with the franchise development process. Franchise developers, sometimes also called franchise consultants, are individuals that assist with the franchising process and work for a franchise development company. There is no special certification, accrediation, training, or education process that is required for someone to call himself or herself a franchise developer or franchise development company.

Franchise Development tasks that competent and qualified franchise developers can assist with, include:

  • Assessing if you are ready for franchising
  • Advising on franchise growth strategy
  • Preparing operations manuals
  • Setting a sales strategy
  • Helping you build Industry relationships

The goal, always, is to build a thriving franchise system where you franchise your business , attract, on-board, train, and support qualified franchisees that successfully open and operate new locations. Learn more about why you should approach franchising as a step-by-step process and how our team can help you franchise your business the right way with our unique platform of legal + franchise development services.

How to Evaluate Franchise Developers?

Be cautious of franchise developers and franchise development companies that solicit you, claim to offer a complete package of franchising services that includes the legal preparation of your FDD, or make franchise sales sound easy. Franchise developers are not franchise lawyers and they should not be preparing your FDD or claiming that your FDD will be reviewed by their legal counsel. Important points to consider:

  • Your FDD is Legal Document that Should be Prepared by Your Franchise Lawyer - The FDD and your franchise agreement are legal and regulatory documents that will form the foundation of your franchise system. If a franchise developer claims that they will prepare your FDD and have it reviewed by their in-house lawyers or that you can hire a lawyer to review their work, something is wrong. An in-house lawyer works for the developer and not you. You need to work directly with your own lawyer who is accountable to you and where you will benefit from privileged communications afforded to the attorney-client relationship. Years from now if a legal issue arises will a franchise developer care and offer assistance or will they tell you its a legal issue and refer you to a lawyer?
  • Avoid Document Mills and Packaging Shops - Avoid developers that claim to do everything in one fixed fee package, including the legal development of your FDD. What they are really doing is offering you everything, including legal advice (by non-lawyers), FDD, Operations Manual, Planning, Website, etc... but, in the end delivering nothing of substance. Just low quality documents, marketing copy, and generic sales strategy that, in time, leads to missteps and frustration.
  • Dont' Assume that Everyone Listed on a Developer's Website Works for the Developer - Recognizing the critical importance of having a franchise lawyer prepare your FDD, some developers display on their website claimed team members and advisors who are really not a part of the franchise developers team. They do this to mask the size and core competency of their actual team. This happens often where developers will list on their own website independent franchise lawyers that are not employed with or directly affiliated with the franchise developer.

Learn more about Franchise Development Company warning signs.

Are Franchise Developers Replacements for Franchise Lawyers?

No. Franchise developers are not replacements for franchise lawyers. The franchise development process is driven by core legal steps that require compliance with federal and state franchise laws and that require the development of legal documents including, your franchise disclosure document and franchise agreements. Franchise developers cannot and should not be preparing your FDD, registering your trademarks, registering your FDD, or advising as to legal structure.

We Can Help with Your Franchise Development

Our firm works with hundreds of franchise brands and in addition to our legal services, our team includes franchise development experts. Throughout the franchise development process we assist with:

  • Franchise assessment and strategy
  • Strategic planning from best practices royalty structures through territory development and financials
  • Legal development and preparation of your FDD and franchise agreements
  • Formation of your franchise company
  • Protection of your trademarks
  • Understanding franchise growth strategy and processes
  • Brand development
  • Aligning your goals with the future growth of your business as a franchise
  • Plus so much more!

Together, we'll be on a journey to help you Win at Franchising!

For more information about franchise development and our Franchise Launch Program, call (800) 976-4904 or click the button below.

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