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Anyone with experience in franchising from either side?

Posted on 1/30/24 at 8:31 pm
Posted by BrianFlanagan
Red Sticks Everywhere
Member since Apr 2019
248 posts
Posted on 1/30/24 at 8:31 pm
I have a meeting in the morning with a company that will do all of the work to make you a franchisor, for a decent sized fee, obviously.

Honestly, it seems like a lot of work with the filings with the FTC and such. Reality is I’m never going to do it on my own.

I’m interested in any information from either side. If anyone has franchised, what route did you take to become a legal franchise? If anyone is a franchisee, what resources did you use to find a company you wanted to be a part of and what was the attraction?
Posted by Thundercles
Mars
Member since Sep 2010
5033 posts
Posted on 1/31/24 at 12:15 am to
Far be it for me to judge as it sounds like you're in a better position than me, but I'd point out that if the act of filing some standard business paperwork has been a showstopper for you then this endeavor might not be for you.

Do you already run a business?
Posted by BrianFlanagan
Red Sticks Everywhere
Member since Apr 2019
248 posts
Posted on 1/31/24 at 6:40 am to
I do currently run a business. And, I have successfully filed and received three trademarks 100% on my own without the help of an attorney or anyone else. I’m in the alcohol business, which has about as many hoops to jump through, as possible, and do all of my own filings.

This isn’t filing normal business paperwork. The FTC requires this wildly comprehensive 23 part packet in which each section is not some simple form. Requires an operations manual, for example, in which the company I’m meeting with today said they typically run 300-400 pages in length. Every single detail of the business has to be written out black and white to where, for example, you have a franchisee in Baton Rouge and a different one in New Orleans and they both operate exactly the same.

I was just curious if anyone has had experience with the process on either side. Thanks!
Posted by horsesandbulls
Destin, FL
Member since Jun 2008
4868 posts
Posted on 1/31/24 at 7:03 am to
Franchisor filings are far from “some standard paperwork.” The Franchise Disclosure Document is not something most businesses have to prepare and issue. We had in house counsel who pretty much spent their time preparing and updating it.

I worked for a year as a senior accountant at a franchisor for a -70 unit restaurant chain in 2018-2019. Im fairly certain you will be required to undergo an annual audit so that’s fun and expensive.

Any specific questions?

Posted by BlackenedOut
The Big Sleazy
Member since Feb 2011
5800 posts
Posted on 1/31/24 at 7:27 am to
When you say alcohol business, I’m going to assume you mean retail side of that equation (bar, package store, restaurant, etc.). Couldn’t imagine that you could franchise distributor or production side of the alcohol industry, since each would be subject to either more Draconian differences in regulations.

How many stores do you have now? Oftentimes, but not always, a franchise-able business would begin with operating a handful or more of stores. Once the model proves replicable, then you can look into franchising. Again that’s a most of the time and not always. But would think being able to refine the method across multiple storefronts would help you to standardize processes/vendors/SOPs.

Worked for a guy for a while who helped a big steakhouse expand nationally and owned a few franchises. Definitely can be lucrative but requires as mentioned above a lot of ground work.
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