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Find Franchising Lawyer

Find Franchising Lawyer

Franchising

One of the most volatile times of a new business’ life is its beginning. A new venture must stand on its own and distinguish itself from the other players in the industry. This darwinian bottleneck can often spell the end for untested brands with unproven products. That’s why some entrepreneurs choose a different route for their startup: franchising.


The Benefit of a Brand

By franchising, entrepreneur’s trade on an established name by purchasing the licensing rights to a larger corporation. Franchising can come with a variety of benefits to any individuals looking to enter the world of entrepreneurship, though it is not without its own set of drawbacks and limitations.

Franchising Advantages

One of the biggest advantages of franchising is recognition. A franchise will have name and image recognition that a small startup cannot hope to match. Along with that recognition, most franchise parent companies also provide standardized training, financial tools, reliable suppliers, and decor templates. These practices have been put to the test in focus groups and through live experimentation, delivering a polished, reliable formula with none of the risk. This can make franchising from a well-known brand a very safe bet.

Franchising Disadvantages

While there are definitely advantages to franchising, it is not a perfect system. The startup process may be safer with a franchise, but it is also more expensive because of licensing costs, training purchases, and other associated costs. Additionally, choosing a franchise will mean a permanent cut of the revenue will go to royalty payments. If an entrepreneur wants to have creative control over their venture, then franchises may not be for them as there are usually stipulations requiring certain practices. It is important ot have a business attorney review the exact terms of a franchise contract in order to ensure all parties understand fully what they are getting into before signing.

Keeping Business Booming

If you are looking to open a franchise, you will need the help of an experienced employment law attorney. An employment lawyer can use their experience and expertise to represent your interests and get you the results you need for the lowest overhead costs.

In order to achieve this best outcome, however, you will need an attorney who has the expertise and resources to take your case all the way. That’s why you should contact Attorney at Law. By partnering with AAL, you will be able to avoid slogging through the quagmire of unscrupulous lawyers looking to exploit your case.

At AAL, we only partner with the best firms in your area, helping you find the best attorney for your case. Don’t wait, contact AAL today to be matched with skilled and experienced attorneys in your area who practice business law.

Contact AttorneyAtLaw.com

Are you looking for an attorney? Do you have questions about a legal case you are facing? Contact us now and we will put you in touch with a lawyer for free.

Franchising Frequently Asked Questions

1. What is franchising?

Franchising refers to the act of obtaining and using a franchise license. A franchise license allows individuals to affiliate with a well-known name and brand to conduct business. Franchising is common in a number of industries, most notably in fast food and restaurant chains where individuals purchase the rights to set up a new location on behalf of a multinational corporation.

2. How do I franchise a business?

First, the individual seeking to open the franchise, known as the franchisee, must purchase the rights to use the name and brand of the franchise controller, known as the franchisor. In addition to paying a licensing fee, the franchisor may also require the franchisee to purchase training, obey certain practice requirements, or engage in specific business practices. Finally, the franchisee must agree to give a percentage of their profits to the franchisor in the form of royalty payments. Once the franchisee has completed the franchise application and finalized the  paperwork, then they can begin the process of opening up their franchise store.

3. How much does it cost to franchise a business?

When franchising a business there are some costs that are typical of any venture and others that are unique to franchising. Separate from any startup costs like advertising, construction, furniture, or sales software, there are franchise fees and royalty payments. A franchise fee can range from $20,000 to $50,000 depending on the franchisor. Royalty fees can similarly vary but often range from 4-12% of revenues.

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