So You Want to START a Franchise?

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What are the Benefits to Becoming a Franchisor?

(i) Cost-Effective Business Development. Unlike employees, your franchisees pay you to become a part of your business, and continue to pay you a percentage of their revenue. They also pay the costs of setting up the franchise and launching the business.

(ii) Simpler Management. The franchise network requires only a simplified and relatively low-cost management system. Franchisees run the day-to-day operations of their business units, which they must do strictly in accordance with your instructions.

(iii) Faster Expansion. The benefit of self-financing business units and a simplified management structure usually means that franchised networks can be expanded more quickly than company-run networks. By replicating a clear and successful business formula, your brand can quickly be expanded nationwide if you reasonably market at a national level.

(iv) Greater Commitment. Franchisees have invested in their business and know they can benefit directly from its success, and they are generally willing to commit to your brand for the long term.

(v) International Potential. If you have longer-term aspirations to expand your business internationally, you can quickly and simply replicate your franchise system in another country without the need to create subsidiary companies or branches overseas.

EPGD Business Law is located in beautiful Coral Gables. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Eric Gros-Dubois

Eric P. Gros-Dubois founded EPGD Business Law in 2013 and is the current head of the firm’s corporate, estate planning, and tax practice, and manages the firm’s Washington D.C. office. With a JD and MBA, and a specialization in finance, Eric is able to step back and view the legal world through a commercial lens while also acting as a trusted business advisor for his clients. He does his best to be solutions oriented, and tries to think like a business owner, not just a lawyer.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.

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