What You Need to Know About Franchising
From the top of the Redwoods down to Coronado Island, California is known as a hub for many small businesses. In total, California is home to over 3.9 million small businesses!
If you are thinking about franchising in California, it is important to understand the rules and regulations that the state enforces. In addition to complying with the FTC, California is a registration state. This means that franchisors are required to register their FDD with the California Department of Financial Protection and Innovation. The initial FDD registration fee is $675 and the FDD renewal fee is $450.
Note that if you are in your first year of franchising, California will accept reviewed financials instead of audited. California also has a number of exemptions, so working with an attorney who understands franchise law is especially helpful.
Commercial and residential cleaning franchises make up over 7% of the state's franchises.
California has the largest economy of any state in the U.S. and would, by itself, make up the 6th largest economy in the world when competing with other countries.
Prior to its statehood, California was an independent country for one month in 1846.
(or potential franchisors)
(franchisees & franchisors)
(or potential franchisees)
Attorneys Who Understand CA Franchise Law
Flat Fee Program for Franchisors
Spadea Lignana’s CORE program for franchisors is a cost-effective and practical solution for the ongoing legal needs of franchisors, including but not limited to, FDD updates, state registrations and franchise agreement executions. Through a proprietary cloud-based system we can effectively and efficiently manage FDD Disclosures and Franchise Agreement executions for fair flat fees billed monthly. We believe that hourly billing, although necessary in certain circumstances like complex M&A deals and litigation, can weigh on the relationship between client and attorney. By coming up with a fair flat monthly fee, the uncomfortable negotiating of whether or not a 6 minute increment in your bill for replying to an email was legitimate goes away.