Mistakes to Avoid in Franchising

Thinking too small

Franchises and franchising are means of expanding your business.  The biggest mistake one can make is to limit your franchises to one state or region.  Once your franchise law firm has prepared your basic franchise registration, disclosure and agreement documents, you should be able to use them with only slight modifications in most other states and even in other countries.  If your business model has been successful in one state or region, you and your legal franchise consultant should be looking for ways to make it work throughout the country or overseas.  Your current product or service may not be appropriate everywhere, but if your business model is sound, there might be related products or services that can be offered in addition to, or instead of, your original product or service in various different locations.  For example, McDonald’s menus have certainly grown from their original burgers, fries and shakes.  They now take into account regional and international tastes and preferences.

Not enforcing your standards

Once you have established your franchising program, your most valuable asset is your reputation.  To be successful and attractive to new franchisees, you must maintain standards and enforce your agreements.  Customers need to know that they can depend on your franchisees to offer the same quality products or services no matter where they are.  A Midas customer wants the same quality car care whether he is in Washington, D.C., or Washington state.  A traveler wants the same level of cleanliness and comfort from a Holiday Inn in Portland, Maine, as in Portland, Oregon.  Naturally, you want all of your franchisees to succeed.  But if one of them is not maintaining your standards, you must act quickly to help bring them into compliance.  Otherwise, you must take steps to terminate them.  You owe that to your other franchisees who are holding up their end of the bargain.  Your franchise law firm should be able to help you enforce your agreements wherever and whenever necessary.

Not retaining an experienced franchise law firm

Whether you are just beginning to expand your business, or if you have an established network of franchisees, the Johnson Franchise Law Firm can help you build or maintain your franchising business.  Contact us to schedule a confidential interview to see how we can help with your franchising needs.