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The Franchise Business Model. A franchise enables you, the investor or franchisee, to operate a business. You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor's name for a specific number of years and assistance.
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.
Washington State is a franchise registration state. Before offering or selling a franchise in Washington, you must register your FDD with the Securities Division of the Washington State Department of Financial Institutions. The initial filing fee is $600 and the renewal fee is $100.
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.
A franchise is a business structure where the buyer (the franchisee) pays a licensing fee to trade using the branding, trademarks, products, suppliers and systems of an established business (the franchisor).
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.
The primary franchising documents needed to create a franchise relationship and franchise your business include: Franchise disclosure document. Franchise agreement. Operations manual. Franchise Registration Applications and Notices. Financial Statements.
A franchise may be any of the following business types: Sole proprietorship. Corporation. Limited liability company.