Franchise Sample Agreement

franchise sample agreement

Managing Your Franchise

Franchising Made Easy With Ken Hollowell

Franchise legal documents

in order to sell franchises it is necessary to first have a Franchise Disclosure Document and Franchise Agreement. These are parallel documents that mirror one another. The FDD explains, in everyday language, the main points of the franchise program, while the Franchise Agreement is drafted in legal wording, and is what essentially ties the franchisee to the program. The FDD must be written in an exceedingly specific format, in a prescribed order, and must contain the precise disclosures as needed by the federal Trade Commission.

There are’do-it-yourself’ packages for the preparation of these documents, but in our perspective, this is a poor way to develop franchise documents. Preparation of the franchise documents involves properly establishing many program variables, the discovery of much detail, which comes from several hours of interplay with the person preparing them. You do not wish to make a howler with your franchise documents. New franchisors need advice, direction, consulting, and assistance from someone who has in depth experience in the preparation of franchise documents. This may be a franchise advisor or a franchise attorney.

The Operations Manual

Franchisors are needed to provide training to their franchisees, and are required to give an Operations Manual to the franchisees, routinely at the time that training begins. The Operations Manual should be written to the’least experienced’ franchisee, and should contain, at a minimum, sections about the franchisee’s relationship with the franchisor, opening the business, operating the business, the procedures categorical to the industry, recommendations and direction for hiring workers, and a series of operational and franchise forms for the daily function of the business. The Operations Manual is typically prepared by a franchise expert.

Marketing Program

you’ll need both electronic and printed reply materials. There are certain successful norms that have been settled in the franchise industry for the sort of materials used. You can get some samples from franchisors, decide on your own approach, and then hire a photographer and graphic designer to prepare materials for you. It’s not necessary to spend a large amount of cash on this part of the program, but the materials should look professional and should convey your message.

Advertising the Franchise Offering

There are many ways to advertise a franchise program. In the past, newspapers and print media were the most important way to generate leads, but these vehicles have become less effective. Over half of franchise inquiries now come from the Net. The issue is that there are tons of Internet sites offering franchises, and franchisors receive many casual investigations from folks who simply’check a lot of boxes’ on a number of sites, indicating interest in numerous different franchises.

We suggest that you establish a budget, maybe about a thousand bucks a month, depending on your development plans, select a few web sites, and then be prepared to receive lots of’chaff’ in which there will be some qualified leads. It’s been calculated that one net investigation in 60 actually buys a franchise. However [*COMMA] you cannot forget the web when selling franchises.

Selling Franchises

It is fascinating to sell franchises yourself, if you can. If you want assistance, there are many franchise brokers in the industry to help you. Many of them only generate qualified leads, while others basically become involved in the sale process. Use caution not to pay too high of a share of the franchise fee as a commission. If the commission paid is too high you’ll have inadequate cash remaining to adequately train and support the new franchisee during their startup period.

Managing and Supporting the Program

Good franchisors do everything possible to help their franchisees become successful. Each franchisee needs access to a franchise expert, who represents or works for the franchisor, to help them with daily Problems and questions. At the beginning the franchise owner or existing staff may serve in this roll. As more franchises are sold, it will be critical to hire someone. Your staff does not have to be massive and just some people can support many dozen franchises.

Your Next Step

Profran Consultants can teach you how to become a franchisor. Contact Ken Hollowell for a 60 minutes FREE consultation.

About the Author

Ken Hollowell, President/CEO of Profran Consultants has over 30 years been consulting with companies wanting to become a franchisor and develop a franchise system. Ken Hollowell has developed over 800 franchise business throughout the world. He is one of the most sought after franchise consultants in the USA. In addition to the franchise development work, Ken prepares private placement offering for companies needing to raise funds for their projects or companies. Ken can be contacted at

Signing Franchise Agreements & Territory Selection