Franchise Disclosure Document. The Federal Trade Commission ("FTC") requires many disclosures to be made by the franchisor to the franchisee, in the form of a Franchise Disclosure Document, or "FDD." You may have heard of the Uniform Franchise Offering Circular, or "UFOC." The UFOC is the precurser to the FDD, and was vary similar, but the FDD is more detailed. Unlike the UFOC, the FDD no longer needs to be filed with the FTC, but some states, like Florida, do require the FDD be filed with the state. The FDD is updated with regularity as financial representations change, and as the franchise system evolves.
Franchise Agreement. The Franchise Agreement is your contract with the Franchisee and its principals and/or obligors. Nearly all obligations of both you, as franchisor, and your franchisees, will be included in the Franchise Agreement.
State Filings. Many states require an application in order to operate your franchise system in that particulary state, or, like in Florida, the filing of the franchise documents.
It is imortant that your FDD, Franchise Agreement and anything filed with any state, are all collaborative, cohesive and do not conflict.
Complete the form on this page to start your journey in franchising, because it takes time, and you might as well get started.
Franchising Your Business
Franchising a business can be an exciting way to grow your brand quickly. While franchising is subject to federal, and often state, regulation, the intended advantages are to use others' capital in exchange for providing to them your blue print for operating a successful business. Additionally, franchising can limit some legal liability of the franchisor.
Because franchises tend to be subject to greater scrutiny through laws and regulations, alternatives should be explored in addition to franchising, including partnering, contracting, creating a distribution system or offering "fractional franchises." For more on what the legal threshholds for creating a franchise is, click here.
Franchisor Start-up Package
Create a sister holding company & transfer TM's.
Prepare & File the Franchise Disclosure Document.
Assist with initial state registration.
Draft the initial Franchise Agreement template.
+ Registration fees. Subject to terms.
Steps to Franchising
For the blog post, How to Franchise My Business, in 10 Steps, click here.
The most important thing you provide a franchisee, as a franchisor, is the "know how." An ideal franchisee has tested operational systems, methods and controls. Throughout the franchising process (if you haven't already done so) will write or have written you franchisee operations manual(s), a start-up manual, training manual(s) and training programs.
Initial & On-going Franchisee Training. Before offering franchises, you will develop a training course and system for franchisees and possibly for franchise managers as well. This franchise training is likely to vary from any existing training system you have, because the new franchisees would have more autonomy than any managers you might have. Plan for the initial training system, which may or may not take place at your headquarters, an existing operations facility, at a third party facility, or even at the franchisees future operations facility. But as you know, the learning does not stop after the initial few days or couple of weeks, and therefore you will need to account for ongoing, follow-up and incrimental training systems.
Franchisee Start-up Manual. The start-up manual should layout how to establish necessary, recommended and beneficial infrastructure, banking, bookkeeping and accounting, initial advertising and necessary staffing, to acquisition of equipment- everything needed in order for a franchisee to have things in place to open the doors, e-commerce site or phone lines.
Franchisee Operations Manual. The franchise operations manual should explain with some specificity, the details from how to answer and handle phone calls, through to customer post-sale follow-up. The operations manual should allow a manager or franchisee who has successfully completed the franchise system training, to walk in on day one, pick up the manual, and have the basic knowledge and information to fundamentally opearte that business substantially similar to yours.
The blog post, How to Franchise My Business, in 10 Steps, can be found here.
Steps to Franchising your business can be found here.
For the post, How to Franchise My Business, in 10 Steps, click here.
Information on Franchise Documents can be found here.