Richmond, Virginia franchise attorney Eric Perkins is a frequent author and speaker on franchising issues, and in 2014 he organized two "boot camp" workshops to provide those thinking about buying a franchised business an overview of franchising. This presentation is a summary of the topics discussed during the workshop. Additional handouts were provided to workshop attendees and are available upon request.
Interestingly, unlike general partnerships (which can come into existence without the partners being aware or even specifically trying to avoid that relationship), a limited partnership can only come into existence “when a declaration is filed with the Registrar”: s. 2(2). So what about the liability of a limited partner until that happens? Well, until the declaration is filed and accepted by the Registrar, the partnership can only be characterized as a general partnership, which imposes UNLIMITED liability on the prospective limited partner.
Also worth mentioning is that you need to have a partnership before you can have a limited partnership. This means that the basic test for forming a partnership must exist at all times – namely, that one or more parties carry on business in common with a view to profit (see s. 3 of the Ontario Partnerships Act).
Aapka Consultant provides various consultancy services at one click by following a single window system to Individuals, Firms, Entrepreneurs, Companies, Businesses and Start ups by simplifying time-consuming and cumbersome paperwork with utmost professionalism in speedy manner. Using our extensive market knowledge and expertise, we get your work done at a reasonable cost within the time limit. We had started from Jodhpur and now we have reached in New Delhi, Mumbai, Chennai, Bangalore, Raipur and Jaipur. We are on the way to reach across country in next few years. As our tagline suggests, we will be ‘Humesha Aapke Saath’ for the services which we provide on our user friendly web portal mentioned below:-
BUSINESS CONSULTANT
Here we provide single window consultancy for your business through our network of experienced Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Insurance agents, Ex-Bankers and Financial Experts across the globe by providing a comprehensive range of services in order to save your valuable time and money which you can invest in growing your business.
CONNECT CONSULTANT
It is designed to make legal consultation simpler by arranging authentic, direct legal opinion of Hon’ble Retired Judges through a medium of mutual convenience through our online user friendly web portal. In this concept, we are striving to connect the unconnected quarters of the legal world. Our model is to connect clients to Hon’ble Retired Judges of various courts i.e. Supreme Court, High Court, Session/ District Court & Magistrate Court, as per suitability, for legal opinion.
LEGAL RECRUITMENT CONSULTANT
Here we are striving to connect the cherished minds of the legal world with various Law Firms, Multi-national Companies, Non-governmental Organizations, Advocates, Universities etc. across the globe. Our focus is on providing permanent, contract and temporary recruitment services to our candidates within the legal world.
Interestingly, unlike general partnerships (which can come into existence without the partners being aware or even specifically trying to avoid that relationship), a limited partnership can only come into existence “when a declaration is filed with the Registrar”: s. 2(2). So what about the liability of a limited partner until that happens? Well, until the declaration is filed and accepted by the Registrar, the partnership can only be characterized as a general partnership, which imposes UNLIMITED liability on the prospective limited partner.
Also worth mentioning is that you need to have a partnership before you can have a limited partnership. This means that the basic test for forming a partnership must exist at all times – namely, that one or more parties carry on business in common with a view to profit (see s. 3 of the Ontario Partnerships Act).
Aapka Consultant provides various consultancy services at one click by following a single window system to Individuals, Firms, Entrepreneurs, Companies, Businesses and Start ups by simplifying time-consuming and cumbersome paperwork with utmost professionalism in speedy manner. Using our extensive market knowledge and expertise, we get your work done at a reasonable cost within the time limit. We had started from Jodhpur and now we have reached in New Delhi, Mumbai, Chennai, Bangalore, Raipur and Jaipur. We are on the way to reach across country in next few years. As our tagline suggests, we will be ‘Humesha Aapke Saath’ for the services which we provide on our user friendly web portal mentioned below:-
BUSINESS CONSULTANT
Here we provide single window consultancy for your business through our network of experienced Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Insurance agents, Ex-Bankers and Financial Experts across the globe by providing a comprehensive range of services in order to save your valuable time and money which you can invest in growing your business.
CONNECT CONSULTANT
It is designed to make legal consultation simpler by arranging authentic, direct legal opinion of Hon’ble Retired Judges through a medium of mutual convenience through our online user friendly web portal. In this concept, we are striving to connect the unconnected quarters of the legal world. Our model is to connect clients to Hon’ble Retired Judges of various courts i.e. Supreme Court, High Court, Session/ District Court & Magistrate Court, as per suitability, for legal opinion.
LEGAL RECRUITMENT CONSULTANT
Here we are striving to connect the cherished minds of the legal world with various Law Firms, Multi-national Companies, Non-governmental Organizations, Advocates, Universities etc. across the globe. Our focus is on providing permanent, contract and temporary recruitment services to our candidates within the legal world.
LLpicult to decide the right incorporationAccuprosys
Accuprosys is a boutique business Consulting firm headquartered in Hyderabad. We provide end to end Consulting business Solutions to various corporates across mid market segments in India. Over the years, we have supported several organizations to emerge as successful business entities by keeping pace with their day to day business requirements. Accuprosys understands and upholds that each segment has its own requirements, our unique consulting expertise with decades of experience and knowledge base across various disciplines makes us the best option to help our clients to increase the productivity and organizational growth with a less turnaround time.
Presentation at the Maryland Association of CPAs Chesapeake Tax Conference on September 27th by MACPA CEO, Tom Hood, CPA. Covers the latest updates on federal and state tax changes and laws facing Certified Public Accountants.
Jodat Law Group, P.A. is an established law firm serving Bradenton, Brandon, Ellenton, Englewood, North Port, Palmetto, Port Charlotte, Sarasota, Sun City, St. Petersburg, Tampa and Venice since 1994.
Which Gov't Agencies are Targeting Auto Dealers… and How to Reduce Your ExposureJim Radogna
Discover the Top Areas for Enforcement and Penalty Currently Costing Other Dealerships a Bundle! High Risk Areas for All Dealership Departments.
When it comes to government regulation and enforcement it seems that Auto Dealerships have a huge target painted on the rooftop.
Laws and regulations impacting auto dealers are many. However, this workshop we will focus on the top enforcement threats facing most auto dealers today and how you can prepare and adjust to lessen your dealership's exposure.
You will learn:
Which Federal & State Regulators are most active in dealerships right now
The most common enforcement actions taken against dealerships today
About the specific enforcement cases and the resulting monetary damages
Specific risks for Variable Operations, Fixed Operations & Human Resources
Best Practices to Avoid these very real potential liabilities
LLpicult to decide the right incorporationAccuprosys
Accuprosys is a boutique business Consulting firm headquartered in Hyderabad. We provide end to end Consulting business Solutions to various corporates across mid market segments in India. Over the years, we have supported several organizations to emerge as successful business entities by keeping pace with their day to day business requirements. Accuprosys understands and upholds that each segment has its own requirements, our unique consulting expertise with decades of experience and knowledge base across various disciplines makes us the best option to help our clients to increase the productivity and organizational growth with a less turnaround time.
Presentation at the Maryland Association of CPAs Chesapeake Tax Conference on September 27th by MACPA CEO, Tom Hood, CPA. Covers the latest updates on federal and state tax changes and laws facing Certified Public Accountants.
Jodat Law Group, P.A. is an established law firm serving Bradenton, Brandon, Ellenton, Englewood, North Port, Palmetto, Port Charlotte, Sarasota, Sun City, St. Petersburg, Tampa and Venice since 1994.
Which Gov't Agencies are Targeting Auto Dealers… and How to Reduce Your ExposureJim Radogna
Discover the Top Areas for Enforcement and Penalty Currently Costing Other Dealerships a Bundle! High Risk Areas for All Dealership Departments.
When it comes to government regulation and enforcement it seems that Auto Dealerships have a huge target painted on the rooftop.
Laws and regulations impacting auto dealers are many. However, this workshop we will focus on the top enforcement threats facing most auto dealers today and how you can prepare and adjust to lessen your dealership's exposure.
You will learn:
Which Federal & State Regulators are most active in dealerships right now
The most common enforcement actions taken against dealerships today
About the specific enforcement cases and the resulting monetary damages
Specific risks for Variable Operations, Fixed Operations & Human Resources
Best Practices to Avoid these very real potential liabilities
Oversea Maker Faire Meetup 2016 Tokyo Report
https://medium.com/@tks/oversea-maker-faire-meetup-2016-tokyo-b8518e2a3248#.8tt1nz9ee
We MakerFaire Organizer from 7 citiys meet at 5/Aug 2016 at Tokyo, present day of Maker Faire Tokyo.
Bangkok/Hongkong/Seoul/Shanghai/Singapore/Shenzhen/Trondheim!
The Digital Deca: 10 Management Truths for the Web Age eBookLisa Welchman
Lisa Welchman takes a fun look at how negative and positive organizational dynamics manifest on the Web in this eBook. She explores the 10 management truths organizations must understand and implement when retooling to be effective online and remain relevant in the information–driven 21st century.
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Avoid catastrophe and build in great offensive weapons and defensive shields by a carefully-crafted affiliate agreement. Bear in mind that most lawyers do not understand this specialized field.
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Citrin Cooperman Partner Aaron Chaitovsky, in conjunction with law firm Gray Plant Mooty, present on the requirements and issues involved in California Law AB 525 and what franchisors must do now to avoid costly mistakes.
Breakout Session: Head for the Exit: How to Structure, Negotiate & Close the ...Healthegy
Presentation by McDermott Will & Emery at Medtech Conference 2016.
Participant:
Kristian Werling, Partner – McDermott Will & Emery, LLP
Powered by:
Healthegy
For more healthcare innovation
Visit us at Healthegy.com
The purpose of the FDD (Franchise Disclosure Document) is to provide prospective franchisees with information about the franchisor, the franchise system and the agreements they will need to sign so that they can make an informed decision.
Secrets of Maximizing The Value of Your Small BusinessPerkins Law, PLLC
RVA small business attorney Eric Perkins was the featured speaker at the October meeting of the Richmond Chapter of the Window Coverings Association of America. The two-hour discussion included the advantages of LLCs as a choice of business entity, key issues to negotiate with business partners, the importance of properly classifying your workers, the pros and cons of electing “S” corp. status, and strategies for resolving disputes without going to court. Great questions from the room full of solopreneurs and small business owners rounded out the interactive program.
Tennis Rules Pop Quiz: Test Your Knowledge of Basic Tennis Rules and EtiquettePerkins Law, PLLC
Think you're an "ace" when it comes to tennis rules and etiquette? Try this short quiz and see how well you do (answers and cites to relevant authority are included).
The Perkins Law Five-Finger Philosophy of Nonprofit Board CompositionPerkins Law, PLLC
The concept behind the Five-Finger Philosophy of Nonprofit Board Composition is that all of us resemble one of the five fingers on your hand. Which finger are you? Which ones do you want on board? Which ones do you want to steer clear from? For copies of the referenced worksheet, connect with Eric through LinkedIn.
This is a presentation given at the Center for Nonprofit Excellence on useful legal and compliance tips for officers and directors of nonprofit organizations. The featured speaker was Richmond, Virginia business and nonprofit attorney Eric Perkins, who also shared with the group his Five Finger Philosophy of Nonprofit Board Composition. Which finger are you? Email eric@ericperkinslaw.com for copies of the program handouts.
Nuts and Bolts of Forming For-Profit and Nonprofit Entities in VirginiaPerkins Law, PLLC
This is a presentation given in February 2010 to a group of tennis league coordinators on the basics of forming for-profit business entities and nonprofit entities in Virginia.
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
Textile Chemical Brochure - Tradeasia (1).pdfjeffmilton96
Explore Tradeasia’s brochure for eco-friendly textile chemicals. Enhance your textile production with high-quality, sustainable solutions for superior fabric quality.
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
How to Build a Diversified Investment Portfolio.pdfTrims Creators
Building a diversified investment portfolio is a fundamental strategy to manage risk and optimize returns. For both novice and experienced investors, diversification offers a pathway to a more stable and resilient financial future. Here’s an in-depth guide on how to create and maintain a well-diversified investment portfolio.
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
Web Technology LAB MANUAL for Undergraduate Programs
Prospective Franchisee Boot Camp Cummary (Perkins Law, October 2014)
1. ERIC C. PERKINS, ESQ.
PERKINS LAW, PLLC
4870 SADLER ROAD
SUITE 300
GLEN ALLEN, VA 23060
WWW.ERICPERKINSLAW.COM
(804) 205 - 5162
Prospective Franchisee
Boot Camp
October 24, 2014
2. Franchise System
Experience
(Zor or Zee):
SMARTBOX Portable Self Storage
- sweetFrog Premium Frozen
Yogurt - Super Cuts - The Grout
Geeks - 9Round - 1-800-GOT
JUNK - The Sparkling Image - Jet
Black - Anytime Fitness – Zoup! –
Michelle Lea Massage Therapy –
ComForcare Senior Services–
Tropical Smoothie Café – The
Entrepreneur’s Source – Apple
Spice Junction – Dominic’s of New
York – Sparkling Image – The
Cleaning Authority – Edible
Arrangements – Faces Cosmetics –
Wild Birds Unlimited – Copper
Penny - Omega Learning Center –
LA Boxing – Pure Barre – CKO
Kick Boxing – Jump Bunch –
Baskin Robbins – Spring-Green
Lawn Care – Five Star Painting –
Money Mailer – The Alternative
Board – Dream Dinners – Salad
Creations – Salsarita’s Fresh
Cantina – Minuteman Press – etc.
3. Three Definitions of Franchising
Common Sense Definition
Definition by Example
Legal Definition
4. Three Great Things About Franchising
You don’t have to reinvent the wheel
You benefit from a built-in support
structure
You have special laws to protect you
5. Three Things About You
Can I afford this?
Can I follow someone else’s rules?
Am I good with people?
Internal leader/manager
External Sales
6. Three Bad Things About Franchising
Failure is possible
Your long term success is still largely up
to you (and other factors beyond your
control)
It is not cheap
7. Three Things to Know About the
Legal Side of Franchising
It’s a contract
Federal law regulates franchising
State law regulates franchising
8. Three Things to Look for in the FA
Exclusive/Protected Territory
Term and Renewal
Transfer Restrictions
9. Three Reasons Zees Fail
They make emotional decisions, not
business decisions
They have unrealistic expectations
They were undercapitalized
10. Three Reasons Zees Succeed
They do their homework
They budget conservatively
They follow the system
11. Three Great Sources of Information
International Franchise Association
www.franchise.org
Blue Mau Mau
www.bluemaumau.org
Entrepreneur
www.entrepreneur.com
12. Dissecting the FDD
Item 1: The Franchisor and any
Parents, Predecessors, and Affiliates
WHAT TO WATCH FOR:
Several years of franchising experience
13. Dissecting the FDD
Item 2: Business Experience
WHAT TO WATCH FOR:
Stability in management team and franchising
experience
14. Dissecting the FDD
Item 3: Litigation
WHAT TO WATCH FOR:
The volume and type of litigation with which the
franchisor is involved
15. Dissecting the FDD
Item 4: Bankruptcy
WHAT TO WATCH FOR:
Check for any bankruptcy filings of the franchisors
affiliates, officers, or directors in the last ten years
16. Dissecting the FDD
Item 5: Initial Fees
WHAT TO WATCH FOR:
Initial costs will vary greatly depending on:
Term of the franchise
Services offered by the franchisor
Protected territory
17. Dissecting the FDD
Item 6: Other Fees
WHAT TO WATCH FOR:
Frees the franchisor will collect from the franchisee for
itself or third parties on an ongoing basis
Operating royalties
Advertising fund royalties
Lease Negotiation
Site Selection
Permitting fees
Training fees
Audit fees
Transfer fees
Renewal fees
18. Dissecting the FDD
Item 7: Estimated Initial Investment
WHAT TO WATCH FOR:
Budget conservatively, these numbers are
notorious for being too optimistic
19. Dissecting the FDD
Item 8: Restrictions on Sources of
Products and Services
WHAT TO WATCH FOR:
Does the franchisor make more money from
operating its own units or from selling stuff to its
franchisees?
Are the purchase terms competitive?
20. Dissecting the FDD
Item 9: Franchisee’s Obligations
WHAT TO WATCH FOR:
Compare and contrast what is written in the FDD
and Franchise Agreement versus how franchisees
rate their relationship with the franchisor
(validation process);
sticklers vs. collaborators
21. Dissecting the FDD
Item 10: Financing
WHAT TO WATCH FOR:
Franchisor leases equipment to franchisees
22. Dissecting the FDD
Item 11: Franchisor’s Assistance,
Advertising, Computer Systems and
Training
WHAT TO WATCH FOR:
Services franchisor will provide for the franchisee
during term of agreement
Franchisor’s initial training and ongoing assistance
programs
23. Dissecting the FDD
Item 12: Territory
WHAT TO WATCH FOR:
Exclusions, exemptions, and exceptions to the
notion of exclusivity
24. Dissecting the FDD
Item 13: Trademarks
WHAT TO WATCH FOR:
USPTO Registration Status
25. Dissecting the FDD
Item 14: Patents, Copyrights, and
Proprietary Information
WHAT TO WATCH FOR:
Copyright protections for operations manuals and
computer software
Trade secrets and proprietary information
26. Dissecting the FDD
Item 15: Obligation to Participate in
the Annual Operation of the Franchised
Business
WHAT TO WATCH FOR:
Active vs. Passive Ownership
27. Dissecting the FDD
Item 16: Restrictions on What the
Franchisee May Sell
WHAT TO WATCH FOR:
Necessary to preserve the uniformity, consistency
and integrity of the franchise system
28. Dissecting the FDD
Item 17: Renewal, Termination, Transfer,
and Dispute Resolution
WHAT TO WATCH FOR:
Franchisees have very limited rights when
terminating franchise agreement before expiration
date
All disputes must be submitted for mediation or
arbitration in franchisor's home state
Fees and Flexibility
29. Dissecting the FDD
Item 18: Public Figures
WHAT TO WATCH FOR:
Relationship must be described in the FDD
30. Dissecting the FDD
Item 19: Financial Performance
Representations
WHAT TO WATCH FOR:
Are the numbers validated by the Franchisees?
How will the numbers translate to your market?
31. Dissecting the FDD
Item 20: Outlets and Franchisee
Information
WHAT TO WATCH FOR:
Trends
Is the system growing or contracting?
What is the closure rate in recent years?
32. Dissecting the FDD
Item 21: Financial Statements
WHAT TO WATCH FOR:
Liquidity/Cash on Hand
Long-Term Debt
Cash Flow
Balance Sheet
33. Dissecting the FDD
Item 22: Contracts
WHAT TO WATCH FOR:
Standard contracts the franchisor requires of the
franchisee
Leases
Guarantees
Promissory Notes
The difference between a license and a franchise (the sweetFrog story)
You hopefully will be in a position to avoid many (but NOT ALL) of the mistakes startup businesses make…you’ll have a smoother start and benefit from a system that has proven successful over the course of time and a brand that either has already generated significant recognition and goodwill or is an emerging brand with upside potential.
Federal and state regulation of franchising: disclosure laws, registration alws, and relationship laws
--Franchise opportunities come in all sizes, from required startup outlays of $50,000 on up to $1 million and higher…..wherever you fall along that spectrum, it is important that you budget conservatively…things will inevitably be more expensive and take longer than you initially hope or expect, so give yourself plenty of cushion.
--I’ve seen a number of brilliant, technical professionals who came out of the corporate world thinking because they were smart and disciplined that they would be successful franchise owners…but they lacked fundamental people skills and suffered as a result.
WARNING: Don’t fall into the trap of thinking you’re just buying yourself a job…that’s a bit short-sighted and puts extra pressure on you to do it all….so take stock of what you’rr strenths and weaknesses are and be sure to fill in the gaps on your team—either through a business partner or manager.
--You need some entrepreneurial spirit to go into business for yourself under any circumstances—franchise or not—however, it is possible to be so entrepreneurial, creative, and independent that you’re not well suited to being a franchisee and being required to follow someone else’s rules and not having the freedom to do what you want, when you want.
--No matter what business you’re in, sales/marketing, and customer service are going to be key drivers of your success (and survival)…so you have to have superior people skills (or partner up with someone who does).
For many prospective franchisees a great resource is a franchise consultant aka broker aka lead generator…what they do is help you better understand what franchising is all about, help you assess whether you’re a good fit for franchising, and help you narrow down you search for the right franchise. They get paid by the franchisor if and only if you sign a franchise agreement…hats the good news, on the other hand, they will only share franchise opportunities that happen to be in their company’s portfolio, so you’re looking at a limited universe of franchises…pitch for Tom and Gus.
--Pitch for SCORE and SBDC
Franchising is no guarantee of success—franchisees fail every day (so do franchisors)…there have been grown men break down in tears in this very room as a result of a failed attempt at being a franchise owner.
There’s a point in the life of your business at which the franchisor lets go and whether you succeed or fail is in your hands.
Like everything else in life, every franchise system is a bell curve—some zees are all-stars and enjoy great success, the majority fall in the middle category of doing OK, and the bottom 10% struggle no matter hat they try and ultimately drop off the face of the earth.
Things under your control: Costs, hiring and firing, choosing a location and negotiating a lease, setting up employee benefits, complying with applicable laws, deciding ho best to market and advertise, motivating your employees, developing customer loyalty and brand awareness within your community.
Franchising offers many benefits, but rest assured, there’s no lunch…you’re paying for everything you get….and at some point all franchisees have second thoughts as to whether what they are getting from the franchisor is worth what they are being charged each month---initial fee, operating royalty, advertising royalty, and other fees and expenses….it all adds up and it can be demoralizing at times.
But don’t lose sight of the fact that you’re using someone else’s stuff…you don’t own it, you’re just borrowing it and when your agreement expires, you gotta give it all back
Probably the most important contract you’ll ever sign—long term (10 years), significant investment of money (your life savings?)—and it is by and large a one sided agreement to protect the franchisor and preserve consistency throughout the system---uniformity and consistency is a hallmark of franchising.
NOTE: Franchise Agreements are negotiable (to a degree)
Federal law—FTC Franchise Rule—Disclosure—FDD—23 items of disclosure—14 day waiting period…samples available online for free—California, Minnesota, Washington, Wisconsin, freefranchisedocs.com, go downtown to SCC to view documents on file for free (there is a charge for copies).
State law—registration laws and relationship laws
“Exclusivity” is a bit of a misnomer...lots of carveouts and potential exceptions…the size of territory is often a topic of negotiation.
Term is typically 10 years, with one or more renewal options…but there are always a number of renewal conditions and hoops you have to jump through to renew…some of which are arguably not fair to the franchisee, but have become fairly standard in franchising
You won; be able to freely sell your business if you want out….any sale of a franchised business is essentially a three-party transaction.
Approach the process in a businesslike fashion, gather as much relevant information as you can, Don’t count on taking a salary for the first year…be prepared for it to take up to 12-18 months for you to reach break-even point.
Understanding the franchise sales process: initial questionnaire and telephone/email discussion, more detailed application, Discovery Day, signing (16 week average cycle from first contact to contract signing)…don’t pay any initial deposits.
Expect to work very hard, this will not be easy under any circumstances
budget conservatively (for both the new business and your personal/family situation)
Be proactive and get to know your franchisor and fellow franchisees
Lots of franchising info online…some better than others.