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As one of several states in the United States that requires registration of franchise offerings, the Minnesota Department of Commerce-Securities Division is responsible for overseeing and helping to maintain the integrity of the franchise community in the State of Minnesota.
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.
9 steps to start a franchise business Step 1: Find an industry. ... Step 2: Research competition. ... Step 3: Evaluate costs. ... Step 4: Create a business plan. ... Step 5: Form a business entity. ... Step 6: Complete the franchise license requirements. ... Step 7: Find a location. ... Step 8: Order equipment and hire employees.
The New York Franchise Sales Act defines a franchise as an agreement in which a franchisee is granted the right to offer, sell or distribute goods or services under a marketing plan or system prescribed by a franchisor, and the franchisee is required to pay a franchise fee.
Here's how to a franchise in 8 steps: Research Franchises. You can find franchise opportunities on websites like Franchise Direct. ... Evaluate Opportunities. ... Evaluate Costs. ... Draft a Business Plan. ... Get the Franchise License Agreement. ... Form a Business Entity. ... Choose Your First Business Space. ... Hire Employees.
The single sale franchise exemption is available to franchisors who wish to avoid registration requirements by limiting the number of franchises offered for sale. In New York, a franchisor cannot offer to sell to more than 2 persons, and potential franchisees are not granted a right to resell. N.Y.
What Potential Business Owners Need to Know About Franchise Registration States CategoryStatesFranchise Registration StatesCalifornia, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, Hawaii, Illinois, Indiana, Virginia, Washington, Wisconsin4 more rows
11 Key Steps for Opening a Franchise Self-Evaluation. What appeals to you about opening a franchised business? ... Pick a Franchise Consultant to Assist You (Optional) ... Research. ... Attend a Discovery Day. ... Speak to Other Franchisees. ... Find a Suitable Location. ... Choose a Franchise and Secure Funding. ... Sign the Agreement.
These legal documents, along with the operating manuals, staffing, training programs, and marketing initiatives, are your main investments in the franchise system. The two primary documents you'll create are the Franchise Agreement and the Franchise Disclosure Document (FDD).
New York is a franchise registration state. Before you offer or sell a franchise in New York you must first file and register your FDD with the Investor Protection Bureau of the New York Attorney General. The initial New York FDD filing fee is $750 and the annual renewal fee is $150.