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Home Videos Franchising Videos How Long Does It Take To Franchise Your Business?

For businesses that possess a successful track record and operational systems that can be adapted and used to train and support future franchisees, franchising a business takes between 90 to 120 days.

The franchising process involves multiple steps that are coordinated by your legal team and include the development and issuance of your FDD, implementation of a franchise growth strategy, establishment of your new franchise company, and the preparation of required financial statements and financial performance representations. At the end of this process your FDD will be issued and you will be ready to sell franchises. In franchise registration states  additional time will be required for registering your FDD with state regulators.

To achieve the 90 to 120 time period, the steps involved in franchising a business can and should occur simultaneously, on parallel tracks, focused on the following milestones:

  • Legal – Including the protection and registration of your trademarks, preparation and issuance of your FDD, formation of your franchising company, and FDD registration in franchise registration states.
  • Franchise Development – Including the evaluation and review of your business, the financial performance of your business, positioning your franchise brand, preparation of your franchise operations manual, and setting a sales strategy.
  • Accounting – Including tax filings for your new franchising company, obtaining a tax identification number, opening a bank account, and your accountant’s preparation of an opening balance sheet that, in most franchise registration states, must be audited.

At the end of the process, within the 90 to 120 day period, your FDD will be issued and you will be legally able to sell franchises. If you plan on selling franchises in one of the 13 franchise registration states an additional registration step is required. This means that your franchise lawyer must also submit your FDD with the state regulator for their review and registration. How long it takes to obtain state registration varies from state-to-state and depends on the time of the year that your application is filed. Generally, state specific registration takes an additional 6 to 8 weeks but can be longer.

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