How to Franchise my Business

[freeman]

You better have exceptional training and staff support ready to go before you ever think of franchising. Getting the legal requirements done is about 2% of what you need to do to successfully franchise and brand a company. It'll take a minimum of $500K to have a marginal franchise system ready to roll out.

Cut corners and fail to deliver the service and support promised and you will find yourself in court and bankrupt in no time.

[mushy204]

Dear KKoher,

I would like to tell you one thing, Dont read the books like how to become rich, how to franchise etc.. Do it on your own..Only if you experience difficulties you can find a good way to reach the market..

The thing is iam going to launch a new brand in clothing as of like you .. but in india and the launch will happen before 2008, IF you would like to share the business , you can..

[FranOption]

yes we can help you

[cosmetics]

There has been more than half dozen customers inquiring to franchise a cosmetics brand, which is currently only sold in pharmacy drug stores. The brand have been selective to choose their franchisees to protect the brand's reputation.

What would you advise the brand to tell those who are interested to franchise? Perhaps a franchisee manual?

There's potential for this brand to be as big as L'oreal.

[Steven Rinaldi]

We're looking into franchise our clothing/accessory store, but have no idea where to start. Any ideas, or advice?

I believe that you need eight things:

1. First read the E-Myth by Michael Gerber, and develop processes, procedures, and operations that can be duplicated easily by prospective franchiseees. You need to have a business model that can be duplicated.

2. Allow the franchisees to have accesses to the clothing and accessories to be sold in the franchisees stores at good prices. You need great buyers with the talent to negotiate big discounts. This will enable your franchisees to have a reasonable profit margin.

3. Great site selection. Your franchisees need good locations to get a lot of traffic. At the same time, you need to approve their leases before they enter into them. Many franchisees get trapped into bad leases, and cannnot make any money.

4. Get a federally registered trademark. While there is common law protection for unregistered trademarks, federal registration is prima facie evidence of ownership. it is essential for building your brand identity.

5. Get a good franchise consultant. You will need help in preparing operations manuals, franchise sales materials, and a franchise training program. A seasoned consultant who has help franchise numerous other businesses is invaluable. I recommend Dave Waldman of PIR Associates. I have worked with him on other start up franchises and his is great. Roberta Caputo of Capital Business Solutions is very good too. I also recommend Jack Eberenz. He has been in the franchise industry for 40 years.

6. Get a good franchise attorney. You will need a franchise attorney to write your franchise disclosure document, franchise agreement, state law exhibits, and get your franchise registered or file a notice in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washingtoin, and Wisconsin. Do not go to a general small business attorney, unless that person has had actual franchise registration experience. One way to verify how good a franchise franchise attorney is, is to ask the franchise attorney what there experience is in registering franchises in the most difficult states (California, Illinois, Maryland, and New York), and how long it has taken that attorney to obtain registration for a franchise offering in that state.

7. You willl need anywhere from $15,000 to $150,000 for the consultants and attorney's fees combined. My fees are $9,000 for writing the FDD, franchise agreement, and state law exhibit. There is an additional charge for each registration ranging from $600 for Rhode Island to $1,500 for Illinois (the additional charge includes state filing fees).

8. Have a corporate culture of compliance. Remember by offering franchises, you are moving into a highly regulated industry (like banking, broker-dealers, health care, mutual funds, and insurance companies). It takes a business with a strong culture of compliance to be in a regulated industry. It is not for everybody.

If you have any questions, please contact me at (240) 481-2706.

Sincerely,

Steve Rinaldi

Steven D. Rinaldi, P.C.
Suite 200
4800 Hampden Lane
Bethesda, Maryland 20814