Frequently Asked Questions about Franchises and Franchising
Q: What is franchising?
A: When people think of franchises, the first thing they think of is McDonald’s. The Golden Arches have made an enormous amount of money for many thousands of people – franchisees and the franchisor alike. But franchising is much more than that. It is a way of delivering your goods and services, under your standards, using your brand, through independent business operators who use their own money. Franchises can sell services as well as physical goods and products.
Q: Is it difficult to start a franchise?
A: To someone who has not done it before, franchising a business can be confusing. Both federal and state laws establish requirements for registering and disclosing information before a franchise can be sold. The franchisor needs to have a business plan or model that can be replicated at many different locations. It must also consider whether trade secrets can be licensed to franchisees while protecting them from disclosure to competitors. But for someone who has helped many others comply with legal requirements and minimize the risks of unauthorized disclosures, the initial startup work and costs can be kept to a minimum. The Johnson Franchise Law Firm limits its practice to franchise law and its peripheral issues so that it can keep up to date with changes in the law and forms, thereby expediting the process. The firm has helped many other companies expand their businesses through franchising. Contact them today to see if now is the right time to franchise your business.
Q: Are there ways to expand my business other than franchising?
A: Yes. Depending on your revenue goals, your need to maintain control over your business, and your marketing plan, you may want to explore alternatives, such as pure licensing, distributorships, business opportunities, multi-level marketing, sales agencies, partnerships or joint ventures. Different laws – many of them varying from state to state – govern these forms of businesses, so even if the initial amount of start-up work and associated costs are less than establishing a franchised business, the legal risks may be greater. Uniform federal franchising laws often remove uncertainty and make franchising a better choice. The Johnson Franchise Law Firm can help you decide which form is best for you and your business. Contact us today to schedule an initial confidential interview to discuss your choices.
