Franchises Attorney in New York, New York

How do you set up a franchise?

New York, NY franchise law attorney Richard L. Rosen explains the best way to set up a franchise.

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we meet with the prospective franchise

franchisor and we try to understand

at the early stages what kind of

business they have how many units do

they have do they have one two three or

twenty

is it something that is uh replicable

you know if it’s something that’s unique

it may not be suitable for a franchise

but what you want to see is that it’s

something that other people can actually

do we then give the prospective

franchisee uh a 20-page uh very detailed

questionnaire where we ask the franchise

the franchisor all of the questions that

uh

the that the franchisor or the

prospective franchisor is going to have

to consider

in setting up the franchise we then help

them formulate the business plan as to

how the franchise is going to work

including all of the economic factors

how much is the franchise fee how much

is the royalty what other charges are

there going to be then we draft all the

agreements

all the documents and then if it’s a

state in which they have to register

either to sell from or sell to

we have to

we have to prepare the registration

documents and of course that includes

the fdd we have to uh draft the fdd

which includes the 23 items of

disclosure and then we usually uh you

know once the franchisor is ready to

sell we meet with the franchisors staff

that are going to be selling the

franchise and go through with them in

great detail what you can and cannot do

with respect to the sale of the

franchise for example

you can’t tell the franchisee oh this is

what you’re going to make or how much

money you’re going to earn you can only

say

it’s in the fdd

this is all we can tell you so we train

the sales staff

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