Steps for Franchising your Business
1
Determine whether your business is franchiseable
Does it generate enough profit to realize a reasonable return on investment? Can your system be replicated?
2
Protect your intellectual property
Identify and register your trademarks and copyrights.
3
Create an operations manual
Describe your system in an operations manual. Include pre-opening procedures, operating procedures, and employment procedures.
4
Create your web site and marketing collateral
Create a web site or add to your web site a page with franchise information with the ability to accept online applications. Create a brochure specific to your franchise program.
5
Become legally compliant
Offering and selling franchises is regulated at the federal level (according to the FTC Rule) and by various states' franchise and business opportunity laws. To comply with federal laws, you will need to have prepared a franchise disclosure document which must be delivered to franchise candidates at least 14 calendar days before the candidates signs a binding agreement or pays you any consideration for the franchise. Many of the states require registration of the franchise offering or that a filing be made before the franchise may be offered or sold in the state.
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