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