The Franchise Package

Part of what the franchise is purchasing is the expertise of the franchisor. The franchisor has through trial and error overcome many obstacles that a first-time business owner might face. Once pilot operations have been completed and an operations manual created, the franchisor should devote their recourses to creating the franchise package.

The franchise package should include a location in which the franchisee can set up shop. The exact type of franchise will determine the necessary qualities the location should have. For instance, if the franchise is a fast food restaurant, the location should be determined where there is frequent foot traffic.

Another consideration to take into account is that the franchisor might be the lessor of the premises. The franchisee should be treated in the same manner as if the lessor were a third party. In these types of situations, there might be concern about opportunism by the franchisor, so it is crucial that a franchise contact a qualified attorney to review the franchise agreement beforehand.

Furthermore, the franchisor should create a training program for the franchise. Without proper training, the risk of failure increases manifold. The training should include an introduction to the accounting and reporting methods that the franchise system uses which will, in turn, help the franchisor keep track of the progress that the franchise is making.

If you have any additional inquiries of the franchise package, contact franchise attorney Mario Herman.