Becoming A Franchisor
You are 12 months and $200,000 away from selling your first franchise.
You can do it cheap, and do it yourself, and it will take you 24 months and $200,000. But, you will probably lose the whole $200,000. And, you might not sell a franchise.
Scared off? Or, still with me?
Franchising can work. You read about the wildly successful chains in newspapers.
The less successful ones are quietly buried on the back page of the business section in a small article entitled “struggling chain enters bankruptcy after losing suit with franchisees.”
Which one do you want to be?
At our firm we like to do it right. After 20 years representing franchisors (and sometimes franchisees) we have seen the best of times (6,000 unit international chains where executives spend every day trying to improve the business for their franchisees and themselves) and the worst of times (chains where executives acknowledge, “We got into franchising the wrong way for all the wrong reasons—we needed to pay off our debt.”)
The good chains have a proven business concept, a patient expansion strategy, a recognized brand with a registered trademark, and they methodically develop first class business plans and legal documents. We love these clients. They are honest, great to work with, and recognize that the legal fees in a process like this can initially run from $25,000 to $35,000.
The future bankruptcies buy documents off the internet, use a word-replace function, botch their registration, get sideways with examiners, expose themselves to litigation with franchisees, and ultimately spend twice as much to dig out of the hole. (If they ever get out of the hole).
If you have characteristics of the “good client” we want to work with you.
You will find that we have twenty five years of unmatched legal and business experience that allows us to craft detailed franchise documents that are appropriate for your business, user friendly (because we want you to sell franchises, not kill trees), but that anticipate and hopefully prevent the often bizarre and unexpected problems that can unfold in the franchise relationship.
Although we have worked for international chains, and represent large national franchisors, we really enjoy helping a start-up through the initial planning and growth process. We can help you develop scaleable documents and internal procedures that will let you grow from 5 to 50 and then 500 franchises.