If you’ve ever thought about expanding your business, there are usually two ways. One, you set up multiple locations with designated managers but, all owned and operated by a single owner. Two, you franchise your business by distributing goods and services through a licensing relationship. Essentially, a franchisor will not only specify the products and services that will be offered by the franchisees, but also provide them with an operating system, brand and support. To begin planning to franchise, you must first brand yourself. It is important to understand that as a franchisor, or brand owner, you do not manage and operate the locations that serve consumers their products and services on a day-to-day basis.
Creating a company, registering a trademark, draft an FDD, and obtain state registrations are just a few of the all-encompassing journey that is franchising. If you have a small business and it starts doing well, you may want to consider franchising to open many great new opportunities.