Franchise Development - Michael J. Childs Consulting

Franchise Development


I partner with one of the most experienced and well-known franchise attorneys in the country. Together we offer a turn-key, Flat Fee Franchise Development Package that includes everything you need to franchise your business and start selling franchises in the shortest amount of time.

All at very affordable pricing.

Your program, legal documents, and Operations Manual will be custom designed from the ground up specifically for a startup franchise business concept.  You’ll get a program that is simple in design with documents that are easy to read and understand for both you and your buyer.

Included in the Franchise Development Package:

Franchise Disclosure Document (FDD)

The FTC requires a Franchise Disclosure Document (FDD) for all franchisors offering franchises in the United States.  It contains 23 Items that explain the franchise that you are offering in plain English.  The FDD must include copies of everything your new franchisee will be signing such as the Franchise Agreement and other agreements.

You will receive an FDD that strictly complies with the Franchise Trade Commission (FTC) Franchise Rule governing the offer and sale of franchises in the United States.

Franchise Agreement

The Franchise Agreement is the legal contract between you and your franchisees.  They are not required to be written in plain English or stick to a specific format like the FDD.  But legalese is hard to decipher, so we write our Franchise Agreements in plain language, making it easy for both you and your buyers to read and understand quickly.  Easy to read documents are a huge benefit to you when it comes to selling franchises.

Custom Operations Manual

The Federal Trade Commission (FTC) Franchise Rule requires that you have an Operations Manual.  The Table of Contents and the number of pages in the manual are a required exhibit in the Franchise Disclosure Document (FDD).  Working closely with you, we provide a custom Operations Manual that is professionally written, edited and ready to use.

A complete, well-designed Operations Manual is the perfect textbook to use during initial and ongoing franchisee training.  You won’t need a separate training manual.

Unlimited Franchise & Business Consulting

The Franchise Development Package includes unlimited franchise consulting and business advice.  There are very few legal decisions you need to make about your new franchise offering, but there are hundreds of business decisions that you need to make.

Here are just a few examples:

Territory Size and Layout. Getting the territory size or layout wrong, usually too big, is one of the more significant mistakes new franchisors make.  You can’t just pick a number or use what other franchise systems are using and hope it works.  We use powerful territory design software to help you design and right-size your territories by counties, zip codes, population, and other demographics.

Initial Franchise Fee.  The initial franchise fee is also critical to your success. If you set it too high and sell a few franchises but then sales stall, you’re stuck. Set it too low, and you can kill the perception of value, although too low is always better than too high.  You can always go up.  Using the franchise fee from a mature franchise offering similar to yours is almost always a mistake.  Again, you can’t just pick a number.

Ongoing Royalty. Ongoing royalty also needs careful consideration.  Setting it too low, even though you may have to live with a few of the first franchises paying lower fees, is better than starting too high, which can prevent you from selling many franchises and may keep new franchisees from making enough profit to succeed.  Once your system begins to mature, and your early adopters are successful, you can then raise the royalty and other fees.

Other Fees. These include technology fees, brand building funds, and national advertising fees, all in addition to the royalty your franchisees will be paying.

Term and Renewal. A lot of thought needs to go into term and renewal.  For example, the length of the initial term, how difficult or expensive it will be for your franchisee to renew, is signing the then-current form of the franchise agreement required and so on.  Even though renewal is usually ten years away, term and renewal provisions that seem unfair can easily hurt franchise sales.

Franchisee’s Obligations. Franchisee obligations are what is required of your franchisees to stay in compliance with the Franchise Agreement, keeping in mind that you have to police every rule or requirement you put in place.  Examples include the restrictions on sources of products and services your franchisees will have to abide by, whether you will require that the franchisee personally participates in the operation of the franchised business, and the restrictions on what the franchise is allowed sell.

Franchisor's Obligations. You will also need to decide what you will be legally promising to do for your franchisees in exchange for the initial franchise fee and royalty before they open for business and ongoing obligations.  Examples include site selection, lease approval, initial and ongoing training, opening support, website and email, onsite visits, yearly conferences, maintaining a list of approved suppliers, and marketing and brand building.

The Legal Framework of Franchising

The business aspects of a franchise system intersect with the legal framework of franchising.  Having owned my own franchise companies, I have a thorough understanding of the business side of franchising as well as the legal documents.

Acting as a liaison between you and legal counsel, I provide feedback and seasoned business advice, which helps ensure consistency across the entire franchise system, and aid in the completion of thorough, accurate legal documents.

I will also help you understand the interconnected systems in your franchise model, and make sure that the legal content in your Franchise Disclosure Document (FDD) and Franchise Agreement are in sync with your Operations Manual, day-to-day operations, franchise sales process, and culture.

Franchise Profit Potential

When done right, expanding your business through franchising can be very profitable. To get an idea of how much you can make by franchising your business, contact me and I’ll send you a Franchise Potential Calculator you can use to forecast franchise sales and royalty for up to ten years.

Franchise Your Business for Less

We can help you design a franchise offering and franchise system that is saleable, sustainable and profitable.  All at a very affordable price.

For a free consultation, give me a call anytime at 321.392.3000 X 1 or schedule a call and I’ll call you.