Looking to Franchise Your Business? This is What’s Required

Each year, many successful business owners take the next crucial step in expanding their business, set their eyes on exponential growth and replicate their success through franchising. And while this is a tempting aspect for many, there’s a lot of misinformation regarding what is necessary to get started. We’re here to provide the necessary and correct information regarding what you need to franchise your business.

A Matter of Profits

Making the decision to franchise your business might be a difficult one. Oftentimes, a business owner might do so to increase their profits. This is one aspect that people are curious about, so it’s where we will begin. The first thing you should know is that your business is not required to have a certain amount of revenue before franchising. Still, you should take into consideration how successful you’ve been at attaining profits before striking out. There is also no recommended or standard median of profits, however, anyone interested in owning one of your franchises will want to know what their return on investment will be, how other franchisees have done in the past (if there are any) and when they can expect to break even.

Locations, Location, Location

While many business owners go the route of franchising to set up new physical locations to reach a larger demographic, many franchises are mobile and/or work-from-home businesses.

Regulation & Oversight

You should educate yourself about the federal and state regulations, laws and oversight associated with franchising. All franchising is regulated by the FTC (Federal Trade Commission.) Their role is to prevent any and all forms of business fraud and ensure that all franchise representation is accurate and correct. This is why it is essential that you build a relationship with a franchise attorney who will develop and review all documents and guide you through the steps to franchise your business.

Selling the Goods

No matter what transaction you’re planning to undertake, it’s important that you have a franchise disclosure document prepared and approved. This is required by the FTC guidelines and must be completed. This effectively outlines the roles, expectations, and responsibilities of what a franchisee must adhere to and the permission to utilize your intellectual property. Depending on what state you live in, you might need to get approval before proceeding with any type of transaction. Again, your franchise attorney is your trusted guide.

Franchising is one of the best ways to take your business to the next level and expand your reach with the products and services you have to offer. If you’re ready to seize the initiative, give FranchiseYourBusiness.com a call today at 833-372-6249,