How do you setup a franchise?
The process of establishing a franchise and "selling franchises"
is regulated by both federal and state law.
Prior to advertising, selling or offering the sale of a
franchisor, a franchisor must comply with the "Federal Franchise
Rule" (16 CFR 436, 437) respecting the disclosure obligations of a
franchisor.
The primary obligation of a franchisor - prior to selling a
franchise - relates to the extensive written disclosure document
(known as a "Franchise Disclosure Document" or "FDD") that must be
continuously prepared, updated and given to perspective franchisees
prior to the offer or sale of a franchise.
In addition to federal regulation, there are various state laws
that require that franchisors register and file the franchisors FDD
with a local state agency.
Certain states maintain various franchise and business
opportunity laws that must also be considered and complied with.
Prospective franchisors - prior to offering or selling a franchise
- must consult with a qualified legal professional to prepare the
appropriate "franchise disclosure document" and to ensure that each
particular states "registration" and/or regulatory requirements are
satisfied.
Additionally, once you have setup your Franchise - the next step
is to apply for an enlistment on various Franchise portals to
submit your Franchise into their directory for Search Engine
Optimization to expose your prospective Franchise to potential
Franchisee's from all over the world.