Franchisor

Helping Businesses Grow For Over 25 Years

Accomplished Franchisor Attorney

The Law Offices of Nancy L. Lanard, P.C. , with over 25 years of experience, is a boutique firm serving franchise clients nationwide. We represent businesses of all types which are looking to expand through franchising. With our years as in-house counsel to an international franchisor (Nutri/System, Inc.), and our extensive experience representing franchisees and franchisors in all markets, we can provide the expertise, knowledge, and understanding that will assist you with your franchise needs.

If you are thinking of franchising your business, using an experienced franchise law firm is the key to starting on the right foot. Every successful business has an experienced team of professionals behind it. Let us be your teammates. Are you ready to take the next step? If you are, find out why you should use us.

Making the Decision to Franchise Your Business

The decision to franchise your business is a lengthy and complex one. As I frequently tell my clients who are making this decision, if you decide to franchise your business, you will no longer be in the business of selling widgets, you will be in the business of selling franchises. This is a huge philosophical change for most entrepreneurs. How do you determine if your business is one which should sell franchises? Consider the following factors:

• Can the franchised business generate sufficient money to make it worthwhile to a potential franchisee;
• Can the business concept succeed in other areas of the country;
• Is the business concept easily learned by others who are inexperienced in the industry;
• Do you have a logo or trade name that is federally registered or easily recognizable;
• Can the business generate enough profit to the potential franchisee to pay normal business operating expenses and a royalty fee to you?

What are the obstacles facing a business that wishes to sell franchises?

The business must comply with federal franchise laws governed by the Federal Trade Commission (FTC) and often state regulations as well. The FTC and certain states require that franchisors provide a written disclosure document to all potential franchisees within a certain regulated timeframe, called a Uniform Franchise Offering Circular (UFOC). This document has 23 required items that must be disclosed to potential franchisees, including, for example, a summary of the business and anticipated competitors, any required regulatory compliance for that industry, information about the background of the franchisor, the total initial expected investment by the potential franchisee in the first 3 to 6 months of operating the franchised business, a schedule of company and franchised locations and anticipated franchise openings, audited financials of the franchisor, etc.

Failure to comply can result in substantial penalties.

Do not risk your business and your financial future by relying on a template or an attorney who is unfamiliar with franchise law. When it is essential to get it done right, consult a franchise attorney who has the knowledge and experience to help you through this complex process efficiently and cost effectively.

Many decisions are needed by the franchisor, such as, the amount to charge for the initial franchise fee and royalty payments; who will be authorized suppliers; what advertising fees, if any, to charge; what are the obligations of the franchisee to the franchisor; what type of support will be provided by the franchisor; what are the hours and places of training; etc. In addition to the UFOC, the franchisor must have a franchise agreement which will govern the relationship between the franchisee and franchisor, an Operations Manual (the Table of Contents must be included in the UFOC), training procedures and sufficient financial and personnel resources to support the franchise system. We can recommend consultants who can assist you in setting up your franchise system, determining appropriate fees, preparing Operations Manuals and training procedures.

These requirements may seem overwhelming, but there is no need to be concerned. Our firm has the experience and knowledge to help you with this complex process. We will prepare the documents needed for compliance with the FTC and those states in which you intend to sell franchises, provide advice and guidance to you on franchise business issues, refer you to expert consultants (if necessary) to assist you with particular business issues or concerns, and put you in a strong legal position to start selling franchises.

We can also use our business knowledge to assist you with contracts, employment, or any other legal services for your business.

Once you are franchising, our firm will provide on-going assistance with annual FTC and state compliance, franchisee issues, additional methods of expansion, potential revenue streams, and any other matters with which you may have concerns . We are here to support and guide you every step of the way. Contact the Law Offices of Nancy L. Lanard, P.C.