Description

Atlanta Franchise law expert Joe Gottlieb answers your franchising law questions, including “How Do I Know if my Business Is A Good Candidate For Franchising?” Contact Mr. Gottlieb today: (678) 775-3545, jgottlieb@cgpglaw.com, http://www.cgpglaw.com/ Distributed by Tubemogul.

Transcript

Host: How do I know if my business is a good candidate for franchising? Joseph Gottlieb: Well, there are several important factors that should be considered to determine whether a business is a good candidate for expansion in a franchising model. The first and really the most important is whether the business concept is teachable to someone else and whether it can be duplicated by someone other than the founder of the system. The business ideally should have a proven track record. It should have a history of having operated preferably in multiple locations over a period of time, because the business has to present a value proposition to a potential purchaser. It's very important that the business have a federally registered trademark, because at its heart franchising involves the licensing of a trademark in a business system. Having a federal registration insures that a franchisee would have the right to use that trademark throughout the country. So that's a very, very important thing and really should be in place before a franchise is offered. The franchisor or the potential franchisor has got to have sufficient capital in order to do this, because there has to be an infrastructure put in place to support franchisees. A franchisor is not going to become profitable right away. So in order to effectively self franchises and support them properly, there has to be enough capital behind the franchisor in order to do it. As to the product or service, there should be some element of uniqueness to it. Something that would differentiate this product or service from other things that are out there and preferably, something that is not trendy where there is hopefully an established market for the product or service. For more information contact: Joseph Gottlieb, LLB Franchise & Corporate Law, Cohen, Goldstein, Port & Gottlieb; 678-775-3545, jgottlieb@cgpglaw.com.