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The Legal Steps Necessary to Franchise Your Business

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If you’re like many business owners, you have likely imagined your company becoming a household name. One way to do this would be to franchise your business model, allowing third parties to operate and expand your established business into new markets while utilizing their own capital and supervisory efforts.

To reach that level of success there must be careful consideration given to organization, calculated growth, and a support system that ensures a franchisees success and by extension your own.

While a prosperous business model that is easily replicated and proven to work is fundamental for a franchise to succeed, it’s really only half the battle.

So if you’ve got the first step down: your product or service is of high quality, consistent, and supported by experience and know-how. Next, you’ll need to consider the many legal challenges and potential pitfalls that franchisors face.

Franchise Law & Legal Counsel

Franchising your business requires that you set up and establish legal infrastructure and documentation that protects and supports both the franchisor and franchisee as well as complies with all regional, national, or international law.

Navigating the legal challenges at all levels can be incredibly complex. Special and circumstantial laws exist that can affect a franchise agreement and your business in ways that aren’t always easy to understand.

Important franchise objectives:

  • Franchise Disclosure Document

The development of an FDD will help legally protect you and provide information regarding the franchise system and agreements a potential franchisee may need to know to make an informed decision. Everything a future franchise purchaser would need to know about the business should be outlined within the FDD.

  • Intellectual Property & Trademark Protection

As a franchisor, you will be permitting a franchisee to use your trademarks and intellectual property. Through the use of trademark registrations and confidentiality agreements, you protect critically important assets of your franchise system from misuse.

  • Franchise Operations Manual

Created and provided by the franchisor for a franchisee, the operations manual is an informational guide to establishing and operating a franchised business. Essentially a step by step handbook regarding training and educating franchisees as well as a legal mechanism for the institution of operational requirements set by the franchisor.

  • Franchise Registration

Establishing and maintaining franchise compliance is critical. Federal laws require compliance with a regulatory framework and some states, like California, have their own franchise laws requiring registration of the Franchise Disclosure Document.

While the above is only scratching the surface of what is required when establishing a franchised business, it is the foundation of best practices in the franchising industry. It is important that all of the necessary documentation be thorough, comprehensive, and in place.

Seek Out a Franchise Lawyer

Seeking out and maintaining legal counsel is instrumental for a franchises’ continued success. Franchise lawyers know what matters and can advise your decision making every step of the way. The attorneys at Kundani Chang Khinda Wilson LLP are well versed in all aspects of franchise law. From disclosures and registrations to support and litigation, the achievement you desire comes from the legal guidance you need.

Premiere Franchise Law Attorneys

No matter if this is your very first business venture or you are expanding your business into entirely new markets, every business owner can benefit from sound legal counsel. Too much is at stake to leave anything up to chance and the advantages of franchising your business are substantial.

Expand your company, minimize your legal vulnerabilities, and move forward with complete confidence. Contact the legal experts at Kundani Chang Khinda Wilson LLP today to get a complete assessment of your franchise agreements and supporting documents. Together we can create a plan for the success of your franchised business.

Contact Us

We want you to feel comfortable discussing your legal issue with us, so we offer a free consultation to learn about your problem. Contact us today to setup a time to come in and talk with our team.

Our Firm Locations

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155 N. Riverview Drive Suite 212,
Anaheim Hills, CA 92808
Get Directions 714-525-2400

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611 Wilshire Blvd. Suite 325,
Los Angeles, CA 90017
Get Directions 213-627-2771

San Gabriel

8810 East Las Tunas Drive,
San Gabriel, CA 91776
Get Directions 714-525-2400

Union City

2 Union Square Suite 102,
Union City, CA 94587
Get Directions 714-525-2400

Contact Us

We want you to feel comfortable discussing your legal issue with us, so we offer a free consultation to learn about your problem. Contact us today to setup a time to come in and talk with our team.