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A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and trademark.
The franchise application is just that ? an application. You are applying to become a franchisee for this franchise company, and it is up to the franchisor to review your application to grant you access to their company.
What are the Steps to Take to Franchise a Business? Determine if franchising is right for your business. Issue your franchise disclosure document. Prepare your operations manual. Register your trademarks. Establish your franchise company. Register and file your FDD. Create your franchise sales strategy and budget.
Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor's brand and method of doing business to distribute products or services to consumers.
Some of the most successful franchise businesses in the United States include Subway, McDonald's, Pizza Hut, Burger King, and Dunkin' Donuts; but restaurants are not the only kind of franchise businesses available. Some business types are more appropriate for franchising than others.
What to Expect in a Franchise Application. Most franchise applications will ask for detailed personal information, including contact information. It's likely you will also need to provide the territory you are interested in, like the city and state. Plus, the franchise may want to know if you'd be willing to relocate.
The Registration Requirements A filing fee of $675 to be paid to the DFPI. A cover letter stating the applicant's name, Org-Id number, and the franchise owner's fiscal year-end date. A Consent to Service of Process for those who are not from California. An Application Facing Page.
Hawaii is a franchise registration state. Before you offer or sell a franchise in Hawaii you must register your Franchise Disclosure Document (FDD) with the Business Registration Division of the Hawaii State Dept. of Commerce and Consumer Affairs.