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Franchising Success

Franchising can be a phenomenal way to expand a successful business idea. By simply attracting individuals who are willing to invest their time and money in proven business and marketing techniques, a franchise owner can realize growth rates significantly higher than if they were to open new location by themselves.

But before you jump head-first into franchising your business, take a step back and consider a few of the critical areas you should consider before moving forward.

If you have questions about Franchise Law, just complete the form below - or call John or Glenn toll-free at 1-866-433-2288

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First, individuals will invest in a franchise because it minimizes the risk of starting a new business from scratch. And before they write a check for five or six-figures, they want to be sure that they're investing in a business that is already proven to be successful.

That means your original business should already have a loyal consumer following and some degree of brand recognition. If your business has not been tested in real market conditions, then the business is not yet ready to be franchised.

You'll find that the bedrock of a successful business that can be franchised is a trademark for their product or service. Therefore, any franchise agreement is really a license from the owner of a trademark (franchisor) giving another individual (the franchisee) the right to sell the product or service represented by that trademark.

So, a franchise agreement allows a franchisee to operate a business or sell a product or service utilizing tested methods and the established a trademark of the franchisor. And that agreement details the fee the franchisee we'll pay to the franchisor - which usually consists of an initial fee as well as periodic royalty payments.

For these fees, the franchisee is usually given an exclusive territory with assurances that he or she will be the only provider of the franchise's goods or services in a particular geographical area.

As part of this agreement, the franchisor is usually obligated to assist with advertising, training, management assistance, purchasing and research and development.

Prior to the first meeting with the potential franchisee, you'll have them complete an application which will detail their educational background, employment history, investment capability and any other information you find necessary.

If you decide to meet with the potential franchisees, the franchisor must make available to the franchisee a Uniform Franchise Offering Circle (UFOC). If the UFOC is not available for the first meeting, by law it must be provided to the franchisee at least 10 days before the franchisee signs an agreement or hands you a check.

These requirements are set-in-stone and any violation may result in the franchisor facing civil and criminal penalties down the road.

If you have a successful business and believe it can be franchised, spend a few minutes early in this process and locate a professional franchise law attorney.

If you find you're having a difficult time finding a content franchise attorney in your area, then don't hesitate to call us toll-free at 1-866-433-2288 or use the contact form found on this page. We'll be glad to discuss your franchise idea.

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