Recently, I began addressing a number of common questions that arise when you are franchising your business over a series of posts.  For this post, I will address more questions we hear and address regularly.

Q. What does it take to develop a franchise program?

A. In the 36 “non-registration” states, there is one legal requirement when you are franchising your business: you must properly prepare a Franchise Disclosure Document (FDD) and Franchise Agreement, according to the guidelines issued by the Federal Trade Commission. In addition to the FDD and Franchise Agreement, there are 14 registration states which stipulate you register your franchise program with state regulators before franchising your business in that state.  You cannot sell a franchise to be operated in that state, sell a franchise to a resident of that state or conduct franchise operations in that state until your franchise has been registered.

While not necessarily required legally, there are other documents you should complete when franchising your business in order to properly operate your franchise company.   We at NFA strongly advise you when franchising your business to create one or more Operation Manuals.  Your Operation Manuals should contain all the details of opening and operating a franchise location.  The Operations Manuals are important quality control, training, sales and enforcement tools when franchising your business.  In addition, you must develop some sales and marketing materials in order to sell your franchise when franchising your business.

Q. What is the size of the franchise industry?

A. Recent projections from franchise associations indicate the following expectations for 2016:

  • Almost 50% of the U.S. retail economy will be generated through franchising;
  • The Gross Domestic Product (GDP) for the franchising sector is expected to rise 5.6% to $552 billion; and
  • For the past 5 years, average annual job growth in franchising was 2.6%, nearly 20% higher that all businesses economy-wide.

(More in my next blog on franchise your business)

Thinking About Franchising?

NFA Franchise Consultants have the experience to help businesses franchise.  Just watch and listen to some of our client case studies and video testimonials.  We can HELP YOU and it doesn’t cost anything to call and talk to us! 

So, if you are still asking the “should I franchise my business” question over and over with no clear direction, give us a call at (706) 356-5637, or contact us through our online form.  We look forward to helping you take your business to the next level and beyond.

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