In the mid 1970′s when I started consulting with business owners there were only a hand full of advisors who specialized in franchise development. Back then, the federal Trade Commission’s Rule 436 had not even been active. This document, depending on the essentially business system and opportunity being described may be anywhere from forty pages upwards to a 100 pages. There are twenty-three basic items that has got to be declaration with numerous sub items.

Before the FDD can be prepared, a franchisor wants to have the correct business structure or entity made along with a name that can be trademarked federally thru the U. The trade name is the corner stone of the franchise business. As the name is branded regionally and nationally, more valuable the franchise becomes.

As you can already see, a specialist teaches, informs and prepare the new franchise customer for franchising. And for each decision to be made there might be multiple options to think about.

Profran advisors uses a 21 page questionnaire to learn particular facts about the business idea. Most young franchisors discover that during the franchise development process, they learn things about many aspects of their business never previously considered. Regularly a young franchisor will state I’d haven’t considered all of the options open to me had I not decided to franchise my business.

a professional and seasoned franchise advisor can make the transaction from entrepreneur to franchisor exciting, delightful and easy mostly. One of the commonest questions is,’don’t I have to go to a solicitor to develop a franchise?’ my response regularly surprises most potential customers when I say,’Not in the first stages of development.’ Unless the solicitor is a franchise business consultant in addition to being a lawyer, the answer is no. How can a solicitor assist or help you when there was no evaluation of your business provided or business system developed? Many franchisors have waste time and money having a lawyer prepares the required document before the franchise system has even been developed. There is a time and place for the lawyer involvement but not always at the beginning. Contained in the FDD is the actual franchise agreement that franchise applicants sign. As a franchise consultant I have consulted with thousands of business owners who were considering franchising their business. The bulk of those were counseled NOT to franchise due to a number of factors. Business and management evaluation is highly necessary in making the choice to franchise. Franchise isn’t for each business or everybody.
Request a FREE 60 minutes phonephone consultation with Ken Hollowell.

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Ken Hollowell, President/CEO of Profran Consultants has over 30 years been consulting with companies wanting to become a franchisor and develop a franchise system. Ken Hollowell has developed over 800 franchise business throughout the world. He is one of the most sought after franchise consultants in the USA. In addition to the franchise development work, Ken prepares private placement offering for companies needing to raise funds for their projects or companies. Ken can be contacted at www.pro

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