Achieve Exponential Growth
If you are a business owner who is looking to grow your business, chances are you have thought about franchising. The benefits of franchising are obvious. First, a franchisor has the ability to expand his business without the hassle of creating separate establishments. A franchisor has the ability to develop a larger company while continuing to be an owner of one or more smaller businesses. Additionally, franchisees are required to make payments to you for the use of your operations manual and marketing plan. You create an opportunity for others to become business owners using your systems and you benefit from their success.
While it is true that there are many benefits to franchising, it is also true that creating a franchise is a demanding process. The process involves a number of steps, including registration with the states where you will do business, adequate disclosure following the appropriate national guidelines, proper entity formation, and payment of necessary franchise fees. There is no doubt that the process can seem long and difficult, but with our help it can be more efficient and enjoyable.
How Epiphany Law Can Help
Epiphany Law is one of the few firms with experience in franchising a business. Our attorneys not only have the legal knowledge to ensure that you comply with the requirements to become a franchise, but they also have the business expertise to help ensure that your business is a success.
Before you become a franchisor, the attorneys at Epiphany Law will ensure that your business is the correct legal entity, that you own and have protected your trademarks, that your contracts are perfected, and that you have a business system capable of reproduction. Once that is complete, we will guide you through the process of creating the franchise agreements and disclosures and ensure proper registration so that you can begin selling your franchise.
Questions & Answers
Q: Do I need an attorney to franchise my business?
A: While it seems like common sense that a law firm would help you with the complex legal documents required to franchise a business, there are an increasing number of franchise “consulting” businesses that have sprung up. They offer such things as “franchise coaching,” “concept formulization,” and “website updating.” Franchise consultants are great at promising the world and delivering very little. In short, they aren’t trained attorneys but rather slick salespeople who pump you up and provide you canned legal forms.
Q: What are the key pieces to franchising?
A: The key pieces will ultimately depend upon your business model. However, in general, you will need at least 4 pieces: Franchise Disclosure Document, Franchise Agreement, Operations Manual and Regulatory Approval.
Q: What is an FDD?
A: FDD or UFDD is the acronym for the Franchise Disclosure Document. The FDD is required by law before you can sell a franchise. While most of the specific legal requirements are similar across the United States, most states have specific requirements that also must be met. The FDD must address franchisor background information, detailed budgeting for start-up, franchising fees, termination provisions and other key points. The FDD is generally approximately 100-140 pages in length.