The legal structure can be scalable to suit today’s requirements, yet allowing room for modification as the franchised business grows.

 

1. STEP TWO:          INTELLECTUAL PROPERTY RIGHTS

 

The second step in franchising is to review the current trademarks, patents and copyrights filed to determine if adequate protection has been given to the IP rights before you start franchising.

 

JB Franchising can provide advice on the IP Protections required and will manage your IP Portfolio.We assist with establishing a budget for filings that meets your budgetary requirements and franchise expansion plans.TM filings can be expensive, so JB Franchise works with TM Agents in order to secure the best prices. We do not mark up prices or take referral fees from these TM Agents for filings- our goal is to pass on the best prices to our Clients.

 

1. STEP THREE:       DETERMINING THE FRANCHISE BUSINESS MODEL

 

Once we understand the business, your objectives and the target market- we can recommend a business model that works for your business and in accordance with the applicable laws in the various jurisdictions where you plan to franchise.The Franchising Business Model will depend on your business, whether retail, food & beverage, manufacturing, consultancy or services.

 

We conduct a detailed study of the current business, which will include, research, analysis and benchmarking which we then use to determine a franchise strategy and structure tailored for your business.

 

 

1. STEP FOUR:        FRANCHISE DOCUMENTATION AND PROCESS

 

This is the most extensive step of the franchise process. We will provide all the pieces required to franchise your business including but not limited to, determining fees to be charged, how to qualify franchisees, franchise sales, how to determine protected areas for franchisees, developing operations and other manuals, establishing required forms and reports and preparing business plans and budgets.

To ensure successful franchisees and maintain quality control, you will need to develop franchise documentation for your franchisees as well as documentation for the franchisor to ensure that your team knows the processes and requirements in developing, maintaining and managing a franchise network.

 

These manuals will serve as a sales tool demonstrating franchisor competence to new prospects, as a training guide for new franchisees, as a reference guide for established franchisees, as a liability limiter for the franchisor, and as a legally binding quality control device for the entire chain.  You will also need to develop training programs for use in conjunction with the operations manual. Computer-based tools and programs are highly effective, as are training videos, and can be used for the franchisee, for the franchisees employees, and for corporate employees. The manuals are prepared based on your business operations or we may recommend more efficient ways to operate certain facets of the business to make the business more suitable for franchising.

 

The Franchise Documentation may include the following (depending on your business) 

For Franchisees, Area Developers and Master Franchisees

 

• Prospectus (or Disclosure Document if Disclosure is Required)

• Franchisee Operations Manual

• Start-Up (or Pre-Opening) Manual

• Unit Manager Manual

• Employee Position Manuals

• Brand Guide

• Local Marketing Manual

• Multi-Unit Managing Manual

• Master Franchisee Manual

 

For Franchisor Personnel:

 

• KYC Forms

• Franchise Sales and Compliance

• Field Consultant Manual

• Training Manuals

 

We also assist you in developing the franchise process within your office to ensure that when you receive an inquiry, your team knows how to respond and manage the franchise prospect from inquiry until opening of the outlet.

 

  4.  STEP FIVE:           FRANCHISE LEGAL ADVICE AND DOCUMENTATION

 

This involves reviewing the applicable laws in the jurisdictions wherein you are selling franchises to ensure that the franchisor is compliant.  Some countries have franchise registration laws and failure to register the franchise or provide certain disclosures to potential franchisees results if fines, penalties and refunding all payments and investments made to a franchisee for breach of the laws.  For a list of countries that have franchising disclosure or registration laws, please click here.

 

Once the franchise model has been established, the relevant agreements required are developed in order to protect franchisor and franchisee entering into a franchise relationship. The franchise agreements are usually prepared as a standard template, which will then need to be modified based on the franchise laws applicable in various jurisdictions.

 

The types of agreements that may be required (depending on the Business Model) include the following.

 

• Master Franchise Agreement

• Area Development Agreement

• Multi-Unit Development Agreement

• Area Representative Agreement

• Franchise Agreement

• Joint Venture Agreements (Shareholders Agreements)

• Trademark License Agreement

• IP Licensing Agreements

• Product Supply Agreements

• Confidentiality and Non-Compete Agreements

• Product Manufacturing Agreements

• Distribution Agreements