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2024 Renewal Guide: Avoiding Dark Periods and Saving Deals
Renewing Your 2024 FDD Learn strategies for navigating the annual FDD renewal process while avoiding missed opportunities and maintaining deals with franchisees. As Q4 2023 approaches, many franchisors are starting to prepare for renewing their Franchise Disclosure Document (FDD) . Under federal franchise laws, a franchisor’s FDD automatically expires within 120 days of the franchisor’s fiscal year-end. The FDD must be renewed before the end of that period to legally sell franchises in the U.S. For franchisors whose fiscal years align with the calendar year, that means the FDD must be renewed by April 30 each year. For franchisors that do business in certain states, FDD renewal requirements can vary. A missed renewal deadline in any of those states, or even at the federal level, could mean an expired FDD – and a long “dark period” with no franchise sales. In this guide, we’ll explore strategies for navigating the 2024 FDD renewal process, including ways franchisors can avoid common mistakes and prevent dark periods while maintaining deals with existing franchisees. Goals for preparing your 2024 FDD Renewal include: Prepare now for a great 2024 FDD Enhance Your Competitive Positioning Avoid Dark Periods and Registration Delays Energize your It em 19 Avoid the Last Minute Frenzy where Opportunities May be Missed Prepare Early for a Smooth FDD Renewal As with any legal or business-related task, preparing early for the FDD renewal process can save you time, energy and hassle as a franchisor. For franchisors renewing their FDD in 2024, the best time to start is right now. By giving your team enough time to navigate around potential obstacles – rather than waiting until the last minute to collect important documents from franchisees and registering your paperwork at the eleventh hour – you can maintain the flow of your franchise business while avoiding stressful “dark periods” in franchise sales created by missed deadlines and expired FDDs. FDD Expiration Date The date your FDD expires can vary depending on several factors, including the end of your fiscal year and the states in which your franchise system operates. As a franchisor, knowing when your FDD expires and requires renewal is critical for continuing to operate your franchise business uninterrupted. Under the federal Franchise Rule , which applies to franchises operating in every state in the U.S., a franchisor’s FDD expires 120 days after the end of their franchise entity’s fiscal year . This means that if your franchise company’s fiscal year ends on December 31, the federal deadline for renewing your FDD in 2024 would be no later than April 30. It’s important to note, however, that your FDD expiration date could vary based on various factors including location and fiscal year-end. For example, if your franchise company’s fiscal year-end differs from the normal calendar year’s end, the deadline to renew your FDD could fall on a different date. Understanding State Specific Regulations Because the franchising industry is regulated at the federal and state levels in the U.S., FDD expiration dates and renewal deadlines can vary by state. As a franchisor, it’s important to know whether the franchise laws in the states where you do business will impact your FDD’s expiration and renewal deadline. When it comes to complying with state franchise laws, franchisors should pay attention not only to the franchise laws of the states in which their brand does business but also to the states in which their franchisees live. For example, a franchisor selling a New York-based franchise business to a New Jersey resident means both parties must comply with both states’ franchise laws – not just the state in which the business operates. Learn more about state specific franchise laws by visiting our interactive map. Registration States Certain states, called Franchise Registration States , impose supplemental franchise regulations that franchisors in those states are required to adhere to, in addition to the federal franchise regulations issued by the Federal Trade Commission . Currently, there are 13 Franchise Registration States in the U.S. including California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, Virginia, Washington and Wisconsin. Franchisors whose principal trademarks are not registered with the U.S. Patent and Trademark Office must also register their FDD in Connecticut, North Carolina, South Carolina and Maine. Other states, called Filing States, require state-specific annual franchise filings. Because of potential conflicts between state and federal franchise laws and deadlines, particularly in the Franchise Registration States, it’s important to remember that your FDD expiration and renewal deadline could differ from the federal FDD renewal deadline, depending on where your franchise operates. For example, in California, which is a Franchise Registration State, a franchisor’s FDD automatically expires 110 days after their franchise entity’s fiscal year-end. Because of that, franchisors in California must renew their FDD at least 10 days earlier in that state than at the federal level each year to prevent their FDD from expiring there. Non-Registration States The majority of U.S. states are non-registration states where franchisors are required to have an FDD and a federally registered trademark but are not required to file or register their FDD with a state regulator before offering or selling franchise opportunities there. It’s important to remember that franchisors in non-registration states are still required to comply with federal franchise laws. Even in non-registration states, allowing your FDD to expire at the federal level can result in being legally prohibited from offering or selling franchises until your updated FDD is approved. To ensure that you fully understand the state and federal franchise laws that apply to your franchise system, consult an experienced franchise attorney before renewing your FDD. What is a Dark Period? The phrase dark period refers to a period during which a franchisor is legally restricted from offering or selling franchises. Extended dark periods can result from allowing your FDD to expire by not renewing it before the federal and/or state deadline. It is called a dark period because a franchisor’s franchise sales “go dark” during this period. Global Dark Periods A global dark period refers to a period when a franchisor is legally restricted from offering or selling franchises anywhere in the U.S. at the federal level. Global dark periods often result from two common issues: Failure to renew the FDD before its federal expiration date Under federal laws, franchisors are required to have an up-to-date and legally issued FDD to offer or sell franchises in the U.S. An expired FDD can trigger a global dark period during which your franchise sales will come to a standstill while waiting for your updated FDD to be approved. Material changes to disclosures Under federal franchise laws, franchisors are required to update their FDD whenever there is a material change to the information disclosed in it. Changes to your Item 19 Financial Performance Representations must be updated immediately. These changes must also be reflected at the state level through a state-specific amendment process. A global dark period can be triggered during the time between your FDD being updated and when it’s approved. Because it can sometimes take months to get your FDD approved after its expiration, it’s important to pay attention to federal FDD renewal deadlines and start the renewal process as early as possible each year. State Specific Dark Periods Unlike global dark periods, state-specific dark periods occur when a franchisor is legally restricted from offering or selling franchises within a specific state. State-specific dark periods apply only to franchise sales in states where the franchisor’s FDD has expired, or another compliance issue has legally restricted them from offering or selling franchises in that state. For example, if your franchise system has locations in California and New York and your FDD was renewed on time at the federal level and in New York, but not in California, a state-specific dark period would be triggered in California. However, you would still be able to legally offer and sell franchises in New York. Why It Matters Time kills deals – and having an FDD reapproved after its expiration can be a slow process. Because of that, the delays caused by dark periods can have serious consequences for your franchise system’s growth and financial health. As a franchisor, it’s critical to begin the FDD renewal process as early as possible to allow enough time to gather required information and documents, and avoid common mistakes that can lead to extended dark periods, missed opportunities and interruptions in franchise sales that can benefit your competitors. FDD Renewal Best Practices for Avoiding Missed Opportunities The FDD renewal process can be stressful. It’s often difficult to obtain necessary documentation and data from accountants and franchisees who are busy with clients and daily operations. State examiners can also take time to return calls or approve filings. Instead of getting upset with others over delays that are outside of your control, though, a more effective strategy is to identify which tasks are within your control and tackle them as soon as possible. Preserve Franchisee Deals As a franchisor, preserving deals with franchisees is certainly within your control. Consider using the annual FDD renewal process as a strategy for saving deals with any existing franchisees whose franchise agreements are slated to expire before your 2024 FDD renewal date. Below are some strategies to keep in mind when attempting to preserve deals with franchisees and prospective candidates: Avoid issuing your new FDD until you’ve closed every deal you can close Use the changing FDD as an incentive for franchisee candidates to sign Start pushing to close deals early in the year Because your 2023 FDD will be outdated, and therefore illegal to issue, once your 2024 FDD is issued, it’s important to focus on closing as many deals as possible before your FDD is renewed. If you’ve started negotiating a deal that hasn’t been closed before your FDD is renewed in 2024, you will be legally obligated as a franchisor to redisclose your new FDD to those candidates, even if you’ve already disclosed your 2023 FDD to them. This will restart the 14-day FDD disclosure period . Redisclosure of your 2024 FDD should be done as soon as possible after it is approved by federal and/or state regulators. Be Proactive As a franchisor, being proactive is critical for success in franchising – especially when it comes to your FDD. Consider the following strategies when renewing your FDD for 2024: Know your renewal deadline(s). Most brands have an annual renewal deadline of April 30, in compliance with federal regulations. If your brand operates in the Franchise Registration States or Filing States, remember to take state-specific renewal dates into account also. Set a filing deadline. Consider a deadline of February 14. Submit documentation early. Most franchisors submit their renewal documentation in March or April. By being proactive about annual renewals, you can avoid delays and shorten dark periods – and get back to selling franchises faster. Getting Your Renewals in Early While it might seem ambitious to set a filing deadline on February 14, it’s doable for franchisors who are willing to take the initiative. Some strategies for hitting your February 14 target include: Tackle Item 7 and Item 19 early. Notify your franchisees and aggressively collect data as early as possible in the new year. Bring accounting on board. Encourage your accountants to be aggressively engaged in the FDD renewal process. Strategize. Know which states you want to operate in and make a plan to comply with their franchise regulations. Financial assurance. Confirm that you will be able to satisfy any financial assurance requirements in the states where you operate as a franchisor. Understand what needs to be updated. Make sure you know the specific FDD items that need to be updated and what information you’ll need to complete that task. Have a franchise attorney. The FDD is an important legal document that is required to sell franchises. To make sure the document complies with all state and federal franchise laws, it’s critical to work with an experienced franchise attorney. By following best practices, you can avoid pitfalls and meet this deadline with ease. Competitively Position Your FDD Although the FDD is a federally mandated legal disclosure document that is required to offer and sell franchises in the U.S., it’s also an important sales tool that you can use to distinguish your franchise offering from other brands. When updating your FDD, consider the following strategies to competitively position your FDD : Energize your Item 19 disclosures. Go beyond the boilerplate and make a financial performance representation plan . Use your brand’s financial data to tell future candidates a success story. Evaluate your offering. How do your franchise fees, territory structure, and Item 19 disclosures stack up against your competitors? Do any changes need to be made? Scrutinize your data collection practices. Are you collecting data efficiently for a better Item 19 in 2024? If not, how can you improve? Set milestones. Make sure your 2024 FDD is structurally sound by December 31, 2023. Start today. Start communicating with accountants now and gather any information needed to have your franchise system’s 2024 audit ready by February. Whether you’re a startup founder or a seasoned franchisor, making a solid plan – and sticking to it – is the key to franchising success. By taking a clear-minded and proactive approach to your 2024 FDD renewal process, you can avoid extended dark periods and start your new year off on the right track. Are you renewing your FDD in 2024? Contact us to learn how we can help your brand stand out from the competition. Learn about Registering your FDD and our Franchise Counsel Program by calling (800) 976-4904 or click the button below. Learn more
Franchisor Playbook for Managing Joint Employer Liability
Luke Fryer of Harri talks about the risks of joint employer liability for franchisors, and find out how to limit your brand’s exposure.
Mastering the Fundamentals of Franchise Success
Strategies for mastering franchising include creating a foundational operations manual, building a framework for brand culture, using a SWOT analysis
Legal Requirements to Franchise Your Business
Learn the legal requirements to franchise your business including preparation of your franchise offering, FDD, operations manual and legal compliance
Top Five Development Mistakes When You Franchise Your Business
Learn how to avoid common franchising mistakes to look out for as a new franchisor.
How Scoop Soldiers is Clearing the Way for Entrepreneurs
Scoop Soldiers Franchise The Scoop Soldiers franchise brand is committed to creating a cleaner path to success for franchisees and veterans – one scoop at a time. Founded in 2010, Scoop Soldiers has been on a mission to improve lives and communities for nearly a decade and a half. With an emphasis on providing excellent customer service and satisfaction while making its clients’ lives easier (and cleaner), the pet waste removal company first left its mark on the industry in 2014, when it expanded throughout the Dallas Fort Worth region. Since then, under the leadership of CEO EJ McCoy , the franchise system has scaled into more than 100 territories across Texas and states as far-ranging as Washington, Colorado, Florida, Virginia and more. Today, the franchise brand operates in 16 states from coast to coast, with multiple territories in many of those locations. With 59 new territories awarded in 2023 – all slated to be operational by April 2024 – and more still available across the nation, Scoop Soldiers’ growth and success are a testament to the brand’s values, ambition and know-how in the competitive world of franchising. Leaving things better than they found them To set themselves apart from the competition, Scoop Soldiers offers residential and commercial pet waste removal services to clients including private homeowners, pet-friendly businesses, apartment complexes, hotels and more. Boasting a contract-free business model with competitive rates and packages designed to meet every customer’s needs, ranging from a one-time pet waste removal service to multi-day visits to properties throughout the week, the brand strives to guarantee client satisfaction in everything it does – and its growth shows that model is working. Beyond improving the lives of its customers, Scoop Soldiers is also committed to improving the communities it serves. As part of that mission, the brand partners with Valor Service Dogs , a Florida-based nonprofit organization that trains and provides mobility assistance and PTSD service dogs to post-9/11 wounded first responders and veterans. Clearing a path to success At Scoop Soldiers, clearing the way for franchisees – and veterans – to succeed is a value that’s ingrained in the company’s business model. From training and support that enables new franchisees to open their businesses within 60 days to digital marketing resources; state-of-the-art software for scheduling, client management and performance monitoring; call center access; and billing handled by the company’s corporate office, Scoop Soldiers’ franchisees get the support they need to succeed from their first day in business … and enough flexibility to enjoy it. The franchise brand also offers additional discounts for military veterans looking to buy a franchise – a perk that can help them transition back into civilian life with a sense of stability as small business owners. Maintaining legal compliance in a regulated industry Despite Scoop Soldiers’ growth and success, operating a franchise system requires careful legal work behind the scenes to avoid running afoul of regulators. To keep the brand’s franchising efforts in line with federal and state franchise laws and regulations, Scoop Soldiers works with The Internicola Law Firm on franchise compliance and franchise agreement transactions – something that ensures the brand can keep growing and thriving as it continues to mature. “Working with this team is an absolute breeze. We had a huge project they helped us on (in) the last four weeks: 45-plus deals in just a few weeks; over 1,000 pages of documents. And they knocked it out like pros. I highly recommend Charles (Internicola) and his team,” McCoy says. To learn more about franchising opportunities with Scoop Soldiers, visit https://scoopsoldiersfranchise.com . Learn more about our clients The Brothers that just do Gutters How The Brothers that just do Gutters are Reinventing Contracting Preservan Ty McBride Talks Life, Franchising, and Entrepreneurship Toastique Toastique is Serving Up Fresh, Healthy Brunch Fare from Coast to Coast
How Tint World CEO Charles Bonfiglio Wins at Franchise Mindset and Growth
Tint World Franchise With its proven model and polished reputation, the franchise brand is the real deal when it comes to success. Established in 1982 in Tamarac, Florida, Tint World has been a household name in the automotive styling industry for over four decades. “Tint World was something that I dreamed about when I was 21 years old. As a teenager, I was a car guy,” says Charles Bonfiglio, chief executive officer and president of the international franchise brand, which offers window tinting, automotive accessories and more to car lovers around the world. With over 150 locations in four countries, Tint World now sits at the top of its game after achieving a level of growth and success that’s rare in the franchising world. But the journey to the top wasn’t always easy for Bonfiglio, who has navigated the brand around roadblocks and obstacles since acquiring the company in 2006 and opening its first franchise store the following year. “Once you get over 100 (units), it gets tougher. It gets different, and you got to rely on other people around you, and you hope that they're just as good as you were when you were having the relationship with these franchisees,” Bonfiglio says. Despite those challenges, Bonfiglio has taken Tint World to unexpected heights in nearly two decades as a franchisor. With a mindset focused on growth, innovation and trust, it’s no surprise the franchise brand claims to be “the nation's largest and fastest-growing window tinting and auto styling business opportunity” – and Bonfiglio isn’t showing signs of slowing down any time soon. The Road to Success As a seasoned business owner from an enterprising family that operated clothing factories in New York in his youth, Bonfiglio was no stranger to success when he bought the Tint World brand from its original owners in Florida nearly 20 years ago. In his late teens, the budding entrepreneur took over one of his father’s factories, launched a clothing line, landed a million-dollar order from a department store (it couldn’t be fulfilled due to cost-related issues) and co-owned a busy pizza restaurant in New York City alongside his brother-in-law. By age 21, though, Bonfiglio was ready to set out on his own – and determined to bring his dreams of owning an automotive business to life. “I decided I wanted to do something that I really loved, and I loved cars, so I told my parents, ‘I want to move down to Florida. I love palm trees and cool cars, and I want to open up a car stereo shop that does aftermarket accessories.’ And they were cool with it,” Bonfiglio recalls. But after moving to Florida from New York, Bonfiglio hit roadblocks trying to finance a startup business and decided to take a job at a car stereo shop instead. It wasn’t until a serendipitous trip back to New Jersey for a wedding a few months later that he discovered an opportunity that would change the course of his career – the chance to join Meineke Car Care, an automotive service brand, as a franchisee. By 1983, with 10 successful franchise units under his belt, Bonfiglio was appointed CEO and franchise developer of the company. Still, despite his success in the franchise world, Bonfiglio knew he wanted more – he wanted to launch his own brand . “I said (to my wife), ‘I just want to open up the business that I always dreamed of. No, there's no franchise out there like it,” Bonfiglio says. Taking the Fast Lane In 2006, Bonfiglio found the opportunity he’d been looking for when he invited the owner of Tint World, a multi-unit window tinting chain he’d admired since moving to Florida years earlier, out to lunch to discuss selling the business to him. “We went out to lunch. I said, ‘Listen, I'm interested in buying your business.’ And we talked about it, and a few months later, I bought the company and the rights to the name, and I trademarked Tint World,” recalls Bonfiglio, who spent the next year drafting a Franchise Disclosure Document (FDD) and registering the new franchise system in all 50 U.S. states before opening its first franchised location in Hollywood, Florida, in 2007. For Bonfiglio, the key to scaling Tint World as a new franchisor was adopting a growth-oriented mindset – something that set the brand apart from competitors and put him in the driver’s seat early on. It’s also a strategy he says franchisees can benefit from. “The reason you can be successful is because you can go with the mindset, ‘I'm going to build this thing.’ Don't compare yourself to other people, other franchisees. You can learn from them, but your only competition is yourself – the way you were last year,” Bonfiglio says. Although growth is critical for every franchise system, Bonfiglio also stresses the importance of knowing how to operate a franchise system properly at every stage of the franchising journey. Because running a large franchise system is different from owning a small business or startup brand, it usually requires a different approach. At Tint World, that meant developing a system based on trust, accountability and teamwork. It also meant taking advantage of technology to automate administrative tasks, like accounting, to create extra time to focus on growth and developing a future exit strategy. “A small brand is great and fun, especially if you're a loving person that doesn't need the money, where you can treat your franchisees really well and it's not about the money, it's about this build. But at the same time, once you start getting over the 100 mark, you got to think about how you can operate that business, because it's not going to be the same,” Bonfiglio says Staying the Course To support a fast-growing brand like Tint World, Bonfiglio focused on creating a system that supported franchisees at every step of their entrepreneurial journey. To make sure franchisees are set up for success and able to replicate the brand’s systems and processes from the first day they open their doors, Tint World boasts a seven-point formula for success that emphasizes franchisee profitability, high-quality personnel, quality products, services and more. Support for new franchisees includes assistance with site selection, construction help during store build-out, assistance with real estate and lease negotiations, store opening training, grand opening promotion, recruitment assistance and more. For Tint World franchisees, the company’s high level of support and attention has paid off in big ways, with the brand claiming accolades as a top franchise from prestigious outlets like Entrepreneur Magazine, Inc. 500, the Franchise Times and more over the last decade. With its proven business model and extensive history of growth and success, maintaining legal compliance has been critical for a powerful franchise brand like Tint World. To make sure the company and its franchisees are up to speed with franchise laws at the federal and local state levels, the company began working with The Internicola Law Firm in 2021 – a service Bonfiglio, who says he’s always disliked dealing with some of the legal aspects of franchising, has appreciated. “One of the reasons I started working with (The Internicola Law Firm) – what I love most about (Charles Internicola) – is because you're just what a franchisor needs, because you care about the franchisee. It's never about being upset or being angry or not understanding them. It's about how we get them to love us and be better. You really have that human intelligence. It’s not legalese – you're a guy with a heart,” Bonfiglio says. As Tint World moves into its 42nd year of operation, The Internicola Law Firm is proud to be part of the brand’s continued success – and we’re looking forward to decades of future growth ahead. To learn about franchising opportunities at Tint World, visit https://www.tintworld.com/franchise-opportunities . Learn more about our clients The Brothers that just do Gutters How The Brothers that just do Gutters are Reinventing Contracting Preservan Ty McBride Talks Life, Franchising, and Entrepreneurship Toastique Toastique is Serving Up Fresh, Healthy Brunch Fare from Coast to Coast
Famous Toastery is Creating a Delicious Legacy
Famous Toastery Franchise With its classic brunch menu and friendly service, the franchise brand is earning celebrity status. Founded by lifelong best friends Brian Burchill and Robert Maynard, Famous Toastery has been hand-crafting a reputation for excellence since 2005. With a menu featuring fresh, healthy fare ranging from cage-free omelets to fresh crab rolls, homemade soups, gourmet sandwiches and more – all made from scratch – the popular brunch concept has earned a name for itself as a local hot spot for all-day breakfast and lunch in neighborhoods across the East Coast for almost two decades. Since franchising in 2013, the concept has expanded beyond its flagship location in Huntersville, North Carolina, to include over 25 Toasteries operating throughout North Carolina, South Carolina and Virginia – with additional locations scheduled to open in Florida later this year. Serving Up Success Considering the level of support offered to its franchisees, Famous Toastery’s ability to scale successfully into new markets isn’t surprising. With a designated corporate team committed to helping franchisees launch and develop their businesses, the brand offers new franchise owners a specialized training program along with site selection and build-out help, marketing support, professional development assistance and more. In addition to supporting franchisees at every step of their entrepreneurial journey, Famous Toastery also prioritizes the communities it serves. For every new Toastery franchise location that opens, the company donates the first two days’ proceeds to local charities after launching – making sure each new restaurant starts on the right foot by giving back where it’s most needed. Famous Toastery's Growth For successful franchise brands like Famous Toastery, maintaining a high level of legal compliance is critical in a heavily regulated industry like franchising. The Internicola Law Firm is proud to be working with the Famous Toastery team since 2022 and we look forward to the continued growth of the brand! To learn about franchising opportunities at Famous Toastery, visit https://bestbreakfastfranchise.com . Learn more about our clients Tint World How Tint World Became a Household Name in Automotive Styling Scoop Soldiers How Scoop Soldiers is Clearing the Way for Entrepreneurs Tipsy Scoop Melissa Tavss Dishes About Franchising her Boozy Ice Cream Business
How to Create a Business Plan for Franchising Your Business
Best practices for creating a dynamic franchise business plan that can allow your brand to scale over time without limiting its ability to change and grow.
Steps to Improve Your Operations Manual
Content strategist Bryan Garner shares tips for creating a custom franchise operations manual tailored to your business. When it comes to growing and scaling your franchise brand, it is important to ensure that your organization’s systems, processes, and standards are applied consistently. One of the most effective methods for getting your franchisees on the same page is creating a franchise operations manual – essentially the blueprint for the franchise system. In the past, that has often meant creating a massive 800-page document filled with technical jargon and an overwhelming amount of information for franchisees to digest. But with new technologies available to streamline and simplify the process, it might be time to start rethinking your operations manual as a franchisor. In this guide, we’ll explore tips for improving your franchise operations manual – and helping your franchisees succeed through better forms of communication. What is a franchise operations manual? A franchise operations manual is the blueprint and how-to guide for a franchise system. One of the five documents to start a franchise , it is a critical resource for franchisees to find detailed information about the organization’s systems and processes, operational requirements, training procedures, suppliers and vendors, and procedures for establishing and running their franchised business. Common Franchise Operations Manual Mistakes to Avoid As a franchisor, making sure your franchise operations manual stays organized and up-to-date is critical for the success of your business. Unfortunately, failing to do so is one of the more common mistakes franchisors make as their brands mature. “One of the biggest (mistakes franchisors make) is being too detailed in the ops manual – going into these very specific SOPs, or the very specific vendors within the ops manual. Those resources exist somewhere else. … It rarely gets updated in the ops manual,” says Bryan Garner, managing partner and content strategist at Manual Makers , a consulting firm that assists franchisors in developing and maintaining operations manuals and other content. Other common mistakes franchisors make when creating a franchise operations manual include: ‘Content chaos’. While every organization struggles with disorganized content at times, a disorderly franchise operations manual can create risks when franchisees or employees need to locate information quickly but are unable to find it. Unnecessary information. Although mature brands can require more detailed information about things like marketing, including too much unnecessary details in your operations manual can contribute to an unhealthy information ecosystem that may overwhelm franchisees. Duplicate or outdated content. When franchisors duplicate content from their operations manual in supplemental manuals about the same topics, often the information only ends up getting updated in one place – creating confusion when different documents offer conflicting guidance. Because a disorganized or outdated franchise operations manual can create legal and operational risks when franchisees are unable to locate the information they need to run their businesses, it’s important for franchisors to follow best practices and avoid mistakes when developing the document. Best Practices for Developing a Franchise Operations Manual When you’re creating a franchise operations manual, it can be tempting to include highly detailed information about every important aspect of your franchise system. However, Garner cautions that unnecessary information can create confusion among franchisees – especially when it conflicts with other internal documents covering similar subjects. “The way that we view the brand standards and ops manuals today, is that it's one piece in your library of franchise communication,” Garner says, suggesting that franchisors simplify their operations manual by utilizing a technology-focused approach that keeps important information organized, accessible and up-to-date across all channels. The following steps can help franchisors improve their operations manual’s contents: Take a digital-first approach. By utilizing a learning management system to create a digital library for the operations manual and other documents, your organization’s content can be easily accessed, maintained and updated from a single digital location. Simplify the content. Include only necessary content and make sure to identify the “who, what, when, where, why and how” behind each procedure. Put someone in charge. Appoint a subject matter expert to oversee your operations manual and its content, including routine updates. Schedule regular updates. Create an editorial calendar and schedule content updates at regular intervals to keep your operations manual aligned with organizational changes and growth. Maintain an archive. Keep an archive of previous versions of your operations manual on file to track changes as your brand matures. In terms of simplifying the process of writing a franchise operations manual, Garner suggests approaching the document as a resource for locating more detailed information about specific topics elsewhere. What should franchisors include in an operations manual? The contents of a good franchise operations manual should be tailored to the specific needs of the franchise brand and its industry. Typically, the amount of detail included in the manual will also depend on the brand’s maturity. “The ops manual becomes this information broker. It tells people where to go, how to use the resources available to them so that they can comply, and so that they can get the full services of the franchise company,” Garner says. For most franchisors, the franchise operations manual should include important information that includes, but isn’t limited to, the following topics: Training, systems and processes. A franchise operations manual should include detailed information about the systems and processes that franchisees, employees, etc. are required to adhere to as part of daily operations, as well as training and business development procedures. Policies and brand standards. Include details about brand standards and organizational policies that franchisees and employees must adhere to. Marketing and social media guidelines. Although detailed content about marketing procedures can be addressed in supplemental manuals, it’s important to include marketing and business development information in the operations manual, as well as social media policies. Where to find additional resources. The operations manual should serve as a guide connecting franchisees to resources that will support them in their success. Make sure to include contact information and the location of documentation that can thoroughly address their questions. Custom content. Your franchise operations manual should be tailored to the needs and goals of your brand. Remember to include any specific information that is unique to your brand. When developing the contents of your franchise operations manual, it can be helpful to work with an experienced consultant to ensure its contents are comprehensive and aligned with industry standards and best practices. Legal Considerations for Your Franchise Operations Manual In addition to being an important business resource, the franchise operations manual also serves a legal purpose as the franchisor’s primary tool for communicating the mandatory systems and processes that franchisees must follow according to regulatory requirements. Although the material contained in the franchise operations manual is typically confidential, federal franchise laws require that its table of contents be included in the Franchise Disclosure Document (FDD) , an important legal document that must be provided to franchisee buyers at least 14 days before selling a franchise or receiving any fees. “There are three different areas (of legal compliance to address). There's the letter of law, the ambiguity of the law, and then the ‘we're-making-law,’” says Garner. In the franchise operations manual, content that addresses those issues typically includes, but isn’t limited to: Franchise agreement requirements. The franchise agreement defines the relationship between the franchisee and franchisor, including the rights and obligations of each party. Your operations manual should include the details of those legal requirements, as well as any procedures associated with them. Regulatory compliance. The franchise industry is regulated by both federal franchise laws and state franchise laws . Because of that, it’s important to include regulatory compliance information in the operations manual based on the location of your business. Employment and staffing policies. When creating organizational rules and policies, franchisors should think carefully about how they will enforce rule violations among franchisees and employees, with an emphasis on consistent application. By simplifying the contents of your franchise operations manual and ensuring that its information is updated regularly along with other supplementary documents, you can support your franchisees in achieving their goals over time – and help your business thrive. Learn more about the franchise documentation and content management services offered by Manual Makers at manualmakers.com . If you'd like more information about growing your franchise system, contact our team at (800) 976-4904 or click the button below. Learn more
What Steps to Follow After You Franchise Your Business
Learn about the journey to building a thriving franchise system from the ground up. When launching a new franchise system, it can be tempting to look for ways to skip the line and jump straight to success. But differentiating good advice from bad can be tricky for new franchisors. From one-stop-shop developers promising to handle every aspect of franchising for fees that are too good to be true, to a seemingly endless stream of books, articles, workshops and events, separating real information from gimmicks – and knowing what will work for your business – can be daunting. “The tough reality is, there's no magic bullet. There's no secret sauce. (New franchisors) are not missing something. It's not like somebody just needs to tell them what to do, and they can do it. It's different for everybody,” says Laura Coe, the founder of Snapology , a children’s enrichment franchise with over 180 territories across the globe, whose private equity exit made headlines in 2021 . Still, there are some steps new and emerging franchisors can take to make sure they’re starting their franchising journey out on the right foot … and heading in the right direction. Steps to take after you franchise your business: Embrace the challenges of franchising Lay a strong foundation for your franchise system Learn into marketing and technology Focus on organic franchise growth Align with the right people 1. Embrace the challenges of franchising For franchisors that are new to the industry, adopting the right growth-based mindset is critical. That means embracing the challenges of franchising and accepting that success doesn’t usually happen overnight. Instead, it often requires years of hard work – and a five-year success plan to keep things on track. Some factors that can make a difference in eventually achieving success as a franchisor include, but aren’t limited to, the following: The right time. It’s important to determine the right time to franchise your business . Make sure your numbers are strong, your systems and processes are solid and your business is properly capitalized. The right product or services. Offering the right product at a time when there’s enough public interest can help create momentum. The right attitude. Franchising is different from owning a business, and it’s important to adopt a mindset that’s based on growth, supporting franchisees and closing deals. For Coe, who says she believes franchising success is 90% perseverance and 10% luck, embracing the industry’s challenges also means being unafraid to experiment with new strategies, even if they don’t necessarily work for competitors. “I think the key is to try different things and double down on what works for you. Because what works for you may not be what somebody told you to do. It may not be what worked for somebody else – even somebody else in your industry,” Coe says. 2. Lay a strong foundation for your franchise system Although the foundation for every franchise system will depend on its industry and budget, it’s important to make sure your new business is legally compliant, properly structured and able to grow over time. To establish a strong foundation for your franchise system, consider the following: Laws and regulations. Work with a franchise attorney to build a rock-solid legal foundation for your business and ensure compliance with state and federal franchise laws. Systems and processes. Develop a replicable business model and an operations manual to answer franchisees’ questions about procedures and processes. Adaptability. Your brand won’t look the same on day one as it will during its fifth year in business, so it’s important to make sure your business structure can adapt to change. It’s also important to remember to continuously update and improve your franchise operations manual as your brand matures. “The operations manual is a living, breathing document. For us, it lived on Google Drive. It was in a Google Document, and the leadership team at Snapology always had access to it. And so anytime something would happen, or maybe even just like a help desk question, somebody would be like, ‘Boy, that should really be in our operations manual,’” Coe recalls. 3. Learn into marketing and technology In an increasingly online world, having a digital presence is critical for growing your brand and attracting new business. When it comes to marketing and technology best practices, it can be helpful to work with a professional marketing team to develop strategies for promoting your brand, including the following: An optimized website. Beyond a good design, making sure your franchise sales website is SEO-friendly can increase its discoverability in a competitive online marketplace. A well-crafted story. By sharing a compelling brand story that focuses on your journey from business owner to franchisor, you can attract like-minded franchisees and loyal clientele to your brand. An established sales process. When a prospective franchisee candidate reaches out, it’s critical to have a franchise sales discovery process in place that can convert leads . A marketing strategy. Whether you handle it yourself or work with an agency, having a marketing strategy is critical for growth. At Snapology, Coe says she preferred working with marketing professionals to ensure the brand’s website was optimized and could reach prospective franchise buyers and customers effectively, and brought the marketing team in-house as soon as it was feasible. 4. Focus on organic franchise growth While many new franchisors may wonder if working with franchise brokers is a good idea , focusing on organic growth is often the best course of action when you’re just starting in the industry – particularly due to the fees associated with broker-related sales. “Some years, 100% of my franchise fee went to pay the brokers, and in other years, typically about 75%, so you've got to have a good website to get some of that organic growth so that you can have that revenue to invest in other areas,” Coe says. Still, working with brokers can have benefits due to the expanded sales opportunities and momentum they can provide. Because of that, new franchisors should take time to understand what franchise brokers look for when evaluating a franchisor before working with one. 5. Align with the right people Although new franchisors often feel like they need to be able to handle every aspect of their franchise system, it’s important to identify your strengths and weaknesses – and to know when to ask for help. New and emerging franchisors might benefit from the support of experts in areas including, but not limited to: Legal. Franchising is a heavily regulated industry, so it’s critical to work with an experienced franchise attorney to ensure compliance with franchise laws . Franchise development. If you’re unfamiliar with the franchise industry, it can be helpful to work with experienced professionals to grow your business. Marketing. Having a team that understands how to reach your target demographic can be invaluable when you’re getting started in franchising. Technology. Developing digital solutions for customers and franchisees can be a game-changer when scaling a brand. Accounting. Tracking your brand’s financial performance is critical for growth. Franchise sales. Depending on your experience and position in your industry, building trust with franchise brokers can be valuable. Although one-stop-shop franchise developers sometimes claim to offer every service new franchisors need to launch a new franchise brand, those promises can sometimes be unrealistic – and can even set franchisors up for potential liability in the future. Instead, it’s a good idea to do due diligence and conduct careful research to ensure that you’re working with experienced, well-qualified professionals who have your brand’s best interests in mind. For anyone just getting started as a franchisor, it’s also a good idea to set realistic expectations and know that you don’t have to be an expert in every area of your brand. Remember that franchising – like everything in business – is a journey that requires time, dedication and a willingness to learn and grow from mistakes. “I always had – what do they call it, ‘imposter syndrome.’ I always felt like, I don’t know what I'm doing, what am I missing? If only I had more franchise experience, if only I had more experience in fran dev, then I'd be successful. But nine times out of 10, that's not the case,” Coe says. Ready to take your new franchise brand to the next level? Our team is here to help! Contact us now. Learn more
What is the True Cost to Franchise Your Business?
Learn the true cost of franchising your business. Beyond legal fees, uncover hidden expenses, budgeting pitfalls, and strategies to invest wisely as a new franchisor.
How to Effectively Improve and Use Your Franchise Operations Manual
Learn how to leverage your operations manual to support franchisee consistency, compliance and success.
Turning Your Restaurant Into a Technology and Relationship-Driven Franchise System
Crust Pizza Co. CEO Carl Comeaux reflects on scaling a restaurant brand into a franchise system that works. When it comes to doing business, Carl Comeaux knows a thing or two about what it takes to succeed. “I've always (had) a leader mindset. I've learned I'm a serial entrepreneur,” says Comeaux, CEO of Crust Pizza Co. , a restaurant concept specializing in traditional Chicago-style thin-crust pizza made with fresh, high-quality ingredients. Self-employed since high school, Comeaux’s lifelong journey as an entrepreneur has followed a winding path that started at the age of 16 with a personal training business he operated around his school and athletic schedule. After college, Comeaux founded a cell phone repair business alongside Nicholas Fontenot, a friend turned business partner, in his hometown of Lake Charles, Louisiana, that quickly took off and became scalable. It wasn’t until 2015, though, that the pair would get their first taste of franchising success after opening a juice and smoothie shop that exceeded their financial expectations and led to the sale of 50 units before turning their attention toward helping the co-founders of Crust Pizza Co. scale their brand a few years later. Today, with 32 locations across the U.S. and seven more in the works, that business is showing signs of surpassing Comeaux’s previous business ventures. And while the path that took him from an ambitious high school entrepreneur to the grown-up CEO of a thriving franchise brand hasn’t always been easy, Comeaux has leaned into those challenges – and found a way to build a franchise system that works. A slice above … and beyond Despite his earlier success as the co-founder of two scalable brands, owning a restaurant hadn’t been on Comeaux’s radar until a chance encounter in 2016 changed his mind – and the course of his journey as an entrepreneur. That year, after relocating to The Woodlands in Texas while developing the juice and smoothie business, Comeaux’s wife suggested getting pizza for dinner after spending the day unloading their moving truck and beginning to unpack their belongings in their new home. While searching for local options in the family’s new neighborhood, Crust Pizza Co. popped up. “I go pick (the pizza) up. It was amazing. It was different. There was a pizza I've never had before,” Comeaux recalls. Intrigued by the discovery, Comeaux took his family back to the restaurant the following week, hoping to learn more about the brand and whether there were any opportunities to buy a franchise. “Another month goes by, and I ended up meeting Mark (Rasberry) and Clint (Price), the founders that in 2011 started this concept, and they became friends. They wanted to scale but they didn't know how,” Comeaux says, noting that the independent chain had three locations at the time. Drawing from his past experiences growing the cell phone repair business and the fast-casual juice concept he’d scaled to 50 units alongside Fontenot, Comeaux offered to help the Crust Pizza Co. founders create a franchise operations manual and navigate the documents to start a franchise . By 2018, Crust Pizza Co. had transitioned to a franchise model while, at the same time, Comeaux and Fontenot had decided to exit the juice franchise they’d founded to pursue new opportunities. As Comeaux prepared to return to Lake Charles with his family, he suggested opening a Crust Pizza Co. location there, where he could continue helping its founders develop the brand. But when his offer was declined out of concern that the brand wouldn’t perform well with the area’s demographics, Comeaux and Fontenot refused to take “no” for an answer. “We ended up creating a concept called Rush Pizza. We trademarked it. We spent $150 grand on research and development, on building that thing up and signing a lease for Rush Pizza. And two days before (signing the lease), I get a call from Clint,” Comeaux recalls with a laugh. As it turned out, the Crust Pizza Co. founders had changed their minds. They wanted to expand the brand into Lake Charles – and they wanted Comeaux’s help. Developing a recipe for growth After building the Lake Charles location into the best-performing store in the Crust Pizza Co. chain and joining the company as equal partners, with Comeaux at the helm and Fontenot overseeing technology, the pair got to work readying the restaurant to grow and scale as a franchise . “There's a lot of things that you have to build as a franchise. You can't just start scaling. I mean, you have to build a team, and you have to do things the right way,” Comeaux says. Part of the process of franchising the restaurant included condensing the chain’s 60-plus-item menu down to 35 offerings that could be reproduced across multiple locations. It also meant updating the restaurant’s decor to appeal to a “hip” demographic while making adjustments to the space’s architectural design. Drawing on lessons from past mistakes with earlier business endeavors, Comeaux says the Crust Pizza Co. team also focused on bootstrapping its way to success using profits from the high-performing Lake Charles store, rather than relying on risky debt to grow the brand. “I told the Crust guys … we're going to stay out of the (private) jets and we're going to do things bootstrapped. We're not going to get private equity money. We're going to do things the right way. We're going to grow slow and steady. We’re going to build a foundation,” Comeaux says, stressing the importance of making sure the first few locations of any new franchise system are profitable before scaling further. Baking success into the business model Beyond building a strong foundation for the business while avoiding debt, Comeaux says metrics have also played a critical role in Crust Pizza Co.’s success. “It’s all about data. It's all about optics, making sure you have optics in front of you daily, hourly, to make sure that you can make a better decision,” Comeaux says. To better understand performance and areas for improvement, Comeaux encourages franchise owners to track labor, costs of goods, year-over-year daily sales, payroll, customer feedback and other KPIs – an initiative the company’s proprietary software, which is built in-house and tailored to the needs of franchisees and customers, is uniquely positioned to support. While the company’s innovative tech-first approach has helped keep managers on the floor and out of their offices, Comeaux says another key ingredient for the brand’s growth has been developing an internal culture that’s focused on giving back to local communities while respecting colleagues and working together as a team. “One thing we implemented just this year was creating a franchise advisory council. So that way, we could have a stronger connection, and the communication could be even clearer between us and the franchisees,” Comeaux says. That strong internal culture wasn’t accidental. To foster a sense of unity within the organization, the brand’s recruiting team has been selective about the people it’s brought on board since franchising. In addition to working with The Internicola Law Firm to ensure they’re backed up by a seasoned franchise attorney who understands compliance and can navigate the franchise space’s unique legal challenges, Crust Pizza Co. has focused on hiring the right corporate team members to lead the company’s growth. Comeaux says the brand’s franchisee recruiting process also hones in on owner-operators who share the brand’s values, love its products, take leadership seriously and are willing to put in the work necessary to succeed in the limited-service pizza space – a strategy that has helped Crust Pizza Co. grow from a small local pizza chain into a thriving, tech-forward franchise brand that’s positioned for future growth and innovation in the restaurant space. “You have to have the right person in the right seat. So, to have a strong culture, you have to make sure that everyone you're hiring, if it's a franchisee or if it's a manager for a store, are they the right person? Do they have those values that you live by?” Comeaux says. To learn about franchising opportunities with Crust Pizza Co., visit https://crustfranchise.com . Ready to franchise your restaurant concept but don’t know where to start? Contact our team today! Learn more
Franchise Insurance 101: What Every Franchisor Must Know to Protect Their Brand
A break down of the essential insurance coverage franchisors need to safeguard their brand, their franchisees, and their long-term success.
Want Profitable Franchisees? Start by Fixing Your Financial Data Strategy
Best practices for increasing unit economics, flag warning signals and turn key performance indicators into system-wide growth that supports franchisee success.