Starting your own business is an intimidating and exciting process. Once it becomes successful though, there are more ventures to consider. You can continue as one location while reinventing products to keep customers interest. The other option is to become a franchise. As your Seattle business lawyer will tell you, it is a route to success though not guaranteed.
Step One: The Evaluation
The process begins by evaluating your business to ensure you are ready to franchise. Your business concept needs to be universal in that is appeals to customers as well as owners. Though it will have niche markets, it should be successful anywhere. Along with this, meet with a financial planner to evaluate the finances. Starting a franchise takes time and money. Your Seattle business setup should also evaluate the market or obtain alternatives to change your business concept into one that reaches a wider audience.
Step Two: The Legal Paperwork
Between a Franchise Disclosure Agreement and state requirements, you will sign a number of papers. Your Seattle business lawyer should be present when this occurs so the writing is accurate. The Franchise Disclosure Agreement alone requires auditing of your finances, a completed business manual, and management team descriptions. If these are not done correctly, it can hinder the franchise process.
Step Three: Decisions, Decisions, and More Paperwork
The legal process does not end with federal and state regulations. You will need your business attorney in Seattle to continue writing contracts for you. Information you need to decide on includes
- Franchise Fees
- Royalty Rates
- Territory Size to Franchise
- Training Program
- Geographic Boundaries
- Products and Equipment to Use
- Net Worth Needs
- Marketing Campaigns
- Owner Operated vs. Multi-Managed
Step Four: Make The Hire
Aside from your normal staff, you may need to hire franchise specialists. If you require franchises to use special equipment, it will include a receptionist to fulfill order entries. Seattle business planning also recommends adding a full time trainer to your staff. This person is responsible for handling the training process of all franchises to ensure your vision and brand is met. Other positions will arise as your franchises grow in number.
Step Five: Sell, Sell, Sell
If you are lucky, people will come to you wanting to open a chain. You may need to market to certain cities or individuals to create interest in your business concept. Many franchises began by offering referral fees. The fee was given to individuals when their referral opened their location. Your contract review attorney ensures each sold franchise follows your brand. Once you establish relationships with your franchise owners, you need to support them as well. This means investing the time and energy to create a universal experience.
When you decide to become a franchise, your Seattle business lawyer is going to be your best friend. The long process takes thousands of dollars and signatures with hundreds of papers to read through. Only your lawyer can make sure everything you sign has your franchise’s best interest. The process is different for each state so hire a local specialist to advice you.