In this blog post, I will address some Frequently Asked Questions about franchise programs and franchise consultants.  Mainly, should I copy franchise program documents or should I create my own?

Q. Why shouldn’t I copy another company’s F.D.D. and Franchise Agreement and just change the name and other pertinent information?

A. Many people think franchise legal documents are simply fill-in-the-blanks paperwork. As seasoned franchise consultants know, creating a well-constructed franchise program simply isn’t an issue of changing a few words. Franchise legal documents describe a complex business relationship between the franchisor and franchisee.

These documents cover numerous business decisions, not just legal issues. Addressing these questions with a knowledgeable franchise consultant usually results in a franchise program that is more profitable for both the franchisor and franchisee and therefore results in more franchise sales.

  • Here are some examples of these business considerations:
  • How much is your Initial Franchise Fee?
  • What are the details on your initial training program?
  • On what criteria is the franchise territory based?
  • What is your plan for growing your franchise?
  • How much and how often will franchisees pay royalties or service fees?
  • What type of on-going support will you offer your franchisees?

The advice of an expert franchise consultant can prove invaluable in determining the best answers to ensure your franchise program meets your needs.

Most NFA clients get back their franchise consultant and development costs by selling one franchise and receiving a year’s worth of Service Fees. Their franchise programs become profitable with their second franchise sale or second year of Service Fees.

Q. What is the size of the franchise industry?

A. Recent assessments from franchise associations indicate that almost 50% of the U.S. retail economy is generated through franchising.

(More in my next blog)