What do you need to know to create a franchise of your business from a legal perspective? You have a successful business concept.  You may have even had inquiries regarding buying a franchise of the business concept.  To franchise your business you will need a federally registered trademark, compliance with the FTCs requirement of a disclosure document (FDD) and legal compliance with certain state requirements. This post will discuss the legal aspects of franchising your business.

First, you must have a federally registered (or at least applied for) trademark with the US Patent and Trademark Office. Registration of your name and logo will protect the name and logo from others attempting to copy your name and/or logo. However, you should know that anyone using the name or logo prior to your use, has priority rights to that name and/or logo for their marketing area. The trademark and other intellectual property (trade dress, etc.) is the cornerstone of what someone will be licensing from you when they buy a franchise from you. Read more »

What are the requirements that a franchisee must meet to renew his or her franchise? The list of criteria should be clearly identified in the franchise agreement and evaluated.

What are appropriate requirements on the renewal of a franchise? When forming a franchise, a company must decide the requirements that a franchisee must meet in order to renew the franchise. Will the franchisee be required to pay an additional franchise fee? Will this fee be a percentage of the currently charged franchise fee or a percentage of the fee he or she originally paid?  Here are some typical requirements that a a franchisor may have of its franchisee on renewal: Read more »