5 things you need to know about Franchising your Business
- Many successful business owners decide to franchise their business in order to grow quickly, with motivated franchisees leading expansion. For the right business, franchising can be a game changer.
- The key to building a successful franchise is recruiting great franchisees. Your franchisees are the face of your business, build your brand and deliver your product or service to your customers. Recruit well and your franchise is likely to be successful.
- Franchising is governed by the Franchising Code of Conduct, which means your legal structure must be set up a by a lawyer with a detailed knowledge of the Code. Your franchise documents must comply with the Code requirements, so that your business is based on a firm legal foundation.
- The two key documents when franchising your business are the franchise agreement and the disclosure document. Your lawyer will draft both of these, with your input. You will also need to create a detailed operations manual for the franchise, which sets out the specific details of how the franchise is operated day to day, for example exactly how products are made and provided to the consumer.
- Finally, make sure that a lawyer with expertise in franchising assists you when setting up your franchise. Franchising is a complex area – a generalist lawyer will not have the expertise required. A franchise lawyer will provide two valuable types of advice – first what the franchise law requires, and second what is market practice for franchises that are similar to yours.
Employment, Franchises, Business And Commercial, LitigationExperience:
Clinch Neville Long, McCabes, Neville & Hourn
Intellectual Property, Trademarks, Information Technology/Online LawExperience:
Clifford Chance, Sparke Helmore, Wallington Dummer Patent & Trademark Attorneys