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How do I begin the process of franchising?

Question: I just opened my second restaurant and in the first 2 weeks I’ve been open, more than 20 customers have asked whether they can buy a franchise!  What do I need to do to get the ball rolling?

Answer: You’re in luck!  On October 15, 2013 at the MRA Restaurant Show in Novi, Michigan, I am proud and honored to be presenting a seminar with Mark Siebert, CEO of iFranchise Group from Chicago, Illinois (www.ifranchisegroup.com), a national and international expert in franchising and systems development.  Mark and I will be discussing the issues you need to consider in preparation of franchising your business.

We will cover the following areas:

  • What is a franchise?
  • Alternatives to franchising
  • What is your concept’s “franchisability?”
    • Understand your brand
    • Understand your customer
    • Understand the qualities that would make a successful franchisee
    • Understand your demographics
    • Develop your System in different markets
    • Document your System
    • Develop and document your training
    • Emphasize and maximize unit economics
  • Protecting your Trademarks
  • Legal Requirements
  • Multiple Jurisdiction regulation

Franchising is an excellent development strategy to expand your brand using other people’s capital.  It is especially attractive for those entrepreneurs who lack the capital, staffing, infrastructure, etc. to expand the brand on their own.  Franchising is a development strategy that has weathered the economic storms of history and continues to grow.  According to the International Franchise Association, by 2001, there were 767,483 business establishments in all domestic franchise systems (either owned by franchisors and franchisees), which employed almost 10 million people, with direct output close to $625 billion, and a payroll of $230 billion.  These establishments account for significant percentage of all establishments in many important lines of business: 56.3% in quick service restaurants, 18.2% in lodging, 14.2% in retail food, and 13.1% in table/full service restaurants.  Franchising is a known and recognized growth strategy that might be the correct growth strategy for your brand.  Join us on October 15, 2013 in Novi and find out if franchising is right for you.

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At Fahey Schultz Burzych Rhodes PLC, we’ve been helping municipalities, franchised businesses, employers, and more with their legal needs since 2008. We’d love to learn how we can help you, too.