Entrepreneurs who have created a successful brand and business and that are considering franchising their business often fear giving up control to franchisees who may not operate their franchised business with the same level of dedication and care that the entrepreneur had in operating their location. Building the brand required the entrepreneur’s blood, sweat, and tears. However, franchisors will need to give up day-to-day control to franchisees, and they can do so without losing control.
Experts will tell you the most important thing when you consider franchising your business is to do “X” or to check out “Y” or be certain you have “Z”. For me, rule number one is not unique to franchising but something I told each of my three children as they were growing up: Rule No. 1 is to “choose carefully”*. It is good advice in life – choose carefully before going down this path or that one. It is particularly important for a franchise company. Continue Reading Rule No. 1 – Choose Carefully
All too often start-up franchisors rely on a consultant or attorney to prepare their franchise agreements for them. If they work with an attorney who has extensive experience in preparing these agreements, their reliance may be appropriate, but recent legal actions against some big named franchisors demonstrate the importance of knowing what is in your agreements, and having them reviewed at least annually by someone who keeps up with trends, pronouncements, and changes in the law.
In many new franchise systems, the most important element of the brand is the common name under which each franchised outlet operates. If you are considering expanding your business by opening additional locations or franchising, before you get too far into the process, consult with trademark counsel to be certain you have a name that can be registered as a trademark with the United States Patent and Trademark Office.