Franchising is a very attractive method of marketing a product or service at retail. It combines the advantages of a proven concept with entrepreneurial opportunities for small business owners.
The number of franchise concepts have grown from a handful when franchising began in the 1950s with McDonald’s and Holiday Inn to more than a thousand concepts today. In fact, the International Franchise Association alone has a membership of over 1,400 brands.
If you have a successful business, and are deciding whether or not creating a franchise system is the path forward, there are a few things you should first consider.
In this article, we will cover when is the right time to franchise your business, as well as, the ten questions you should ask yourself before franchising your business.
Franchising your Business? What to Consider
Becoming a franchisor is no easy task. The franchise process includes selling your model and licensing your name or trademark to others who then become your independent “franchisees.”
In addition, you should also consider whether you will seek to expand by opening new outlets that you will own and fully control (“vertical integration”).
There are no rules that inflexibly govern your decision. But there are important questions to answer when considering your decision.
To help, we’ve put together a list of questions that you should answer before you move forward with the franchising process.
10 Questions to Ask Before Franchising your Business
Here are the ten questions you should ask yourself before franchising your business.
This list is not exhaustive, but the primary issue is “are you ready?” The answers to these questions, together with legal and accounting guidance, will help you decide if the time is NOW. Fortunately, the lawyers at Garcia & Milas Law Firm are here to help.
By: Allan P. Hillman, Esq.
Connecticut Franchise Law Attorneys
Our attorneys have extensive experience in franchise, antitrust, non compete, and trademark law for business clients, lawyers and judges. To get started, please complete the contact form included below.
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Allan Hillman is a business and litigation attorney. He has practiced and has taught franchise, antitrust, non compete, and trademark law to business clients, lawyers and judges. He has many years of experience in these areas, has Chaired to the Connecticut Bar Association Franchise, Dealer & Distribution Law Committee, and served on the American Bar Association Governing Committee for its Forum on Franchising.
This publication is for general information purposes only and is not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.