Franchises are a critical aspect of the economy. These sub-businesses enable business owners to easily operate a business with the guidance of a brand that has already established the framework within which it operates. Franchises typically have a lower failure rate than solo-ran businesses and also often provide better profits, easier management, and improved advertising capabilities in the process.
Starting a franchising program for your own business requires sound planning and legal considerations, as handing over the keys to new locations to individual business owners can be a difficult process to complete. Our team can help any business to establish a franchising protocol that fits their needs.
What Is A Franchise?
A franchise is a remotely monitored and individually-run business location that uses regional or national branding that offers individuals the chance to independently run a business, while taking advantage of the benefits of operating under a known brand. Franchising rests on a relationship between the franchisor and the franchisee. The franchisor is the owner of the business, including trademarks and patents, and the overall brand itself. The franchisee is the licensor of a unique franchise location that is authorized to operate under the brand. The franchises is the person that manages the franchise branch or location under the direct supervision and guidance of the franchisor according to the terms of the franchise agreement.
The franchisor authorizes the franchisee to run the location and sell products and/or services under the brand name according to the franchise guidelines. In exchange, franchisees earn profits from operation but pay a fee to the franchisor for the use of the brand and various branded elements as outlined in the franchise agreement.
How To Start A Franchise?
Establishing an easy-to-follow franchising process that also protects your brand and your customers is essential to success in this domain. The legal aspect of a franchising deal is critical to its overall success for multiple reasons:
Ensure Legal Fortitude
The many documents and agreements that need to be drafted in a franchise deal are critical for its long-term success. Depending on the unique structure of your business, you will need certain criteria to be developed that fit in line with your overall business structure and objectives.
Enable Safe Collaboration
In order to function as a stable and profitable franchisor operation, you need to have terms in place that protect you from the most common disagreements that occur between the franchisor and franchisee. Additionally, you need to include the proper aspects of the agreement that facilitate a smooth, mutually beneficial relationship between the franchisor and franchisee.
In order to have a successful franchise, that is, in order to protect your brand during the expected geographical expansion, your brand needs to be trademarked and have its intellectual property properly protected and secured. Our team can help you with the filing process and ensure it is done quickly and in line with your unique business structure and branding.
Create Your Franchising Company
Every franchisor operates as a “franchise company”. We can help you format and complete the required documents and establish the formal entity that will run your franchising operations.
Work With The Professional Franchise Attorneys At METROLEX IP
METROLEX IP’s team of franchise law experts can help you establish the franchising operation that perfectly suits your organizational structure and overall business goals. We specialize in tailoring this process to meet the unique needs of our clients. We understand that personalization is key when forming these operations.