Franchising

A franchise is an individually owned business that for a fee, allows the franchisee to use the name and trademarks, and to sell the products or services of a corporation. While a business owner may have decided to use franchises to reach more customers, increase market share, and/or shift responsibility for personnel and site-specific decisions, they still need to provide support to the franchisee. The Federal Trade Commission requires a franchisor to give Uniform Franchise Offering Circular (UFOC) to potential franchisees.

Tips

Starting points:

Find local regulations and laws on franchises.
Research the type of financial and management support necessary.
Revise your business plan to include a franchise.
Register your trademark, or check your trademark protections.

Suggested strategies:

Use article databases and news websites to find information on franchises in your industry, or related industry
Alternatively, search for "local franchises" to find information on franchises that are geographically close to one another.
Legal books on starting a business often include chapters on franchises.

The following materials link to fuller bibliographic information in the Library of Congress Online Catalog. Links to additional online content are provided when available.

Franchising and Licensing by Andrew J. Sherman
Call Number: HF5429.235.U5 S54 2011
ISBN: 9780814415566
Published/Created: 2011
Written by an experienced corporate and transaction lawyer, Sherman looks at franchising and licensing from the perspective of intellectual capital. Chapters cover the strategic, legal, financial, and operational aspects of franchising as a way to expand a business. Numerous tables, charts, and case studies provide illustrative examples, and a resource directory is included at the end.
Franchise Bible by Rick Grossmann; Michael J. Katz (As told to)
Call Number: HF5429.235.U5 G766 2017
ISBN: 9781599186009
Published/Created: 2017
The bulk of this book is divided into two sections: the first part is geared towards franchisees, or those interested in owning a franchise of an existing company; the second part is for franchisors, or business owners considering licensing their business to other third parties. Within those two parts are legal considerations, research and financing needs, and management and marketing strategies.
The Franchisee Handbook by Mark Siebert
Call Number: HF5429.23 .S545 2019
ISBN: 9781599186399
Published/Created: 2019
Written by a franchise consultant, Siebert walks a potential franchisee through the steps of evaluating the risks and rewards of purchasing a franchise. Although not for a business owner considering becoming a franchisor, the back of the book does provide helpful resources and franchise disclosure agreements.

These are freely available online sources provided by government agencies, trade publications, and organizations.

A Consumer's Guide to Buying a Franchise, Federal Trade Commission
The Federal Trade Commission, the nation’s consumer protection agency, has prepared this Guide to help you decide if a franchise is right for you. It suggests ways to shop for a franchise opportunity and highlights key questions you need to ask before you invest. The Guide also explains how to use the disclosure document that franchisors must give you — under the FTC’s Franchise Rule — so you can investigate and evaluate a franchise opportunity.
Franchise Center | Entrepreneur External
This portal by Entrepreneur includes the annual Franchise 500 ranking list, a franchise matching tool for those looking to buy one, and a list of available franchise opportunities.
Franchise Times External
A news website for franchisors and franchisees, Franchise Times has articles; directories of vendors, available franchises, and banks and investors; conferences; and webinars.
International Franchise Association (IFA) External
Explore franchising opportunities that match your goals, resources, and passions through the IFA Site.

Small Business Hub: A Research Guide for Entrepreneurs

Franchising

Tips

Starting points:

Suggested strategies:

Select Resources