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What is Franchising?
A method for the distribution of goods or
services.
Elements of a Franchise
License of a Trademark ;
Payment of an Initial Fee;
Franchisor provides substantial support or
marketing plan or the existence of a
“Community of Interest” between Franchisor
and Franchisee.
Quick Franchise Facts
Approximately 760,000 Franchised
Businesses in U.S.
19 Million Americans employed in Franchised
Businesses.
Over 75 industries represented.
Restaurants are the largest single sector
represented.
Regulation of Franchising
The Offer and Sale of Franchises is Regulated
by Federal and State law.
Franchise Disclosure Document “FDD” must
be provided to prospects at least 14 days
before the Franchise Agreement can be
signed and money accepted.
14 states require registration of the FDD.
Without a Federally Registered Trademark,
must comply with state Business Opportunity
Laws.
Is Your Restaurant a Good Candidate for Expansion Through Franchising?
Can the concept be duplicated?
Are there regional taste factors to
consider? Will it sell everywhere?
Is the concept teachable?
Is Your Restaurant a Good Candidate for
Expansion Through Franchising?
Is there an element of uniqueness?
Do you have sufficient proof of concept?
Multiple locations?
Operating history?
Will the business provide a good ROI?
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