Franchise Your Business

Are you planning on franchising your business? Maslyn Law PLC can help. With more than a decade of experience working with start-up franchise systems in a wide variety of industries, Maslyn Law PLC can help you start franchising your business quickly and efficiently. And – most importantly – our experience can help you avoid many of the mistakes that new franchisors often make.

Some franchise “experts” offer off-the-shelf franchise programs into which they will try to shoehorn your business model -- we do not. We take the time to understand your business and what makes it unique and we craft a franchise program that is personalized to fit your needs.

Free Consultation

If you are new to franchising, you probably have a lot of questions. Maslyn Law PLC is pleased to offer you an opportunity to consult with an experienced and nationally respected franchise lawyer for one hour at no charge. Please contact us to arrange your free initial consultation.

Fee Structure

If you decide to hire Maslyn Law PLC to help you franchise your business, we offer several billing arrangements to meet your needs and budget. Click here for our philosophy on fee arrangements.

FAQs By the New Franchisor

Q Do I really need a “franchise lawyer”?

A Franchising is a heavily regulated business model. On a federal level, the Federal Trade Commission requires that anyone who sells a franchise prepare a complicated disclosure document (called a “Franchise Disclosure Document” or an “FDD”) and provide it to every prospect before they sign a contract or pay any money. Many states require that an FDD also include state-specific disclosures and that the FDD be filed or registered with a state agency before any solicitations are made in the state. Some states also have laws that govern the terms of the relationship between the franchisor and the franchisee. And, finally, there are a handful of other laws that may be implicated in certain franchise relationships, like Business Opportunity Laws, Sales Agent Laws, and Dealer or Distributor Relationship Laws. Internationally, franchising is being regulated more and more aggressively each year. We believe that if you intend to operate as a franchisor, you need legal counsel who is familiar with each of these laws and the legal decisions affecting franchising.

Q Is my business “franchisable”?

A Maybe. Franchising has been used in so many different industries that the mind swims with possibilities. Generally, your business might be ripe for franchising if: (a) your business is successful, (b) you have established processes that enable the success to be replicated, (c) your business is unique in some way, (d) the fees that a franchisee will pay will not eliminate the potential for profitability, and (e) the income stream from the franchise system is likely to be greater than the costs of running the franchise system. Much of this determination should be addressed in the business planning phase. (Some new franchisors may benefit from working with a consultant at this phase. Maslyn Law PLC is pleased to refer ur clients to reputable third party consultants and to work with those consultants, as needed.)

Q How much should I charge for an initial franchise fee/royalty?

A It depends. There are a number of ways to look at the initial franchise fee which may affect how you set it. Traditionally, the initial franchise fee was intended to be a way for the franchisor to offset the costs associated with establishing each new franchise (like legal costs, brokerage fees, site selection, training, etc.). More and more often, franchisors have used initial franchise fees as a profit center, effectively changing the calculus to a question of “how much will the market allow?” In that case, the market varies dramatically depending on the type of business, the length of the term, the territory (if any) and a number of other factors. It may also be helpful to think of the initial franchise fee from a franchisee’s perspective … whatever the initial franchise fee is, will the franchisee be able to recoup his investment during the term of the relationship in a way that makes it worthwhile to him/her? Similarly, the royalty fee should not completely eliminate any possibility for the franchisee to be profitable.

Ultimately, the level of the initial franchise fee is not really a legal question, but a business question.

Q How long does it take to start franchising?

A It varies dramatically depending on how prepared you are to start franchising, how complicated your franchise model will be, your particular skills set and how much outside assistance you may need to obtain (e.g., franchise sales, marketing, training, administrative etc.). It is conceivable that a basic franchise program could be set up in about a month (not including state filings, which typically take longer). More likely, though, the process will take at least 2 months and possibly as long as 8 months (in extreme circumstances). Your particular circumstances will dictate how long it takes.

© 2009 Maslyn Law PLC