All About Franchising FALL 2009 ENTREPRENEURSHIP AND SMALL BUSINESS SERIES - HUDSON LIBRARY & HISTORICAL SOCIETY October 14, 2009. Introduction. Amy M. Shepherd Partner with Baker & Hostetler, working in the Columbus office
All About FranchisingFALL 2009 ENTREPRENEURSHIP AND SMALL BUSINESS SERIES - HUDSON LIBRARY & HISTORICAL SOCIETYOctober 14, 2009
Amy M. Shepherd
A.What is franchising?
History of Franchising
FTC definition of “franchise” – the three elements:
There are exemptions and exclusions from the FTC requirements, including:
“Sophisticated Investors” exemptions include:
A franchisee expects that he/she will be furnished a proven concept, a well-recognized trademark, initial training, ongoing supervision, marketing support, new product development and bulk purchasing power.
Is your business a good candidate for franchising?
To be a successful franchise system, your business should have the following characteristics:
Choose a franchise that closely matches your skills, personality traits, budget constraints and risk tolerance – not the current “hot” franchise. [Joel Libava, Cleveland, Ohio franchise consultant and marketer, December 9, 2008]
Federal and state disclosure requirements – FDD has 23 separate items of information, including:
Some states require a franchisor to register (file registration and disclosure documents and receive approval from states before offering or selling a franchise in that state):
Timing for offers and sales:
Options for territory or franchise
Cincinnati • Cleveland • Columbus • Costa Mesa • DenverHouston • Los Angeles • New York • Orlando • Washington, DCInternational AffiliatesSão Paulo, Brazil • Juárez, Mexico
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