how to turn a business into a franchise

What is a franchise business?

A franchise is a type of business model where the original business owner owns all of the legal rights to the business but can use the trademark to others as part of the franchise. If a person becomes part of the franchise, they have the legal right to use your trademark, logo and business practices. Before you become a franchise, you will have to research:

What is UH Small Business Development Network?

The UH Small Business Development Network is here to help. Our business advisors will help you grow your small business, increase your bottom line and develop expansion plans. All advising sessions are at no cost, confidential and one-on-one.

Choose the Right Brand for You

You want to franchise with a brand that will bring you success. When determining how to convert a business to a franchise, the first step is to pick a franchise.

Franchise Qualification Process

If you’re wondering how to convert a business to a franchise, the first large step is to qualify as a franchise owner. Here is a breakdown of the qualification process to become a Tide Cleaners franchise owner:

What to Expect From Tide Cleaners

As a Tide Cleaners franchise owner, you will be able to leverage the Tide brand to grow your business. You can expect plenty of support from Tide Cleaners, and the company will always provide systems and standards to enable customer satisfaction.

Business Conversion Costs

The initial store investment to convert a laundry business to a Tide Cleaners franchise ranges from $93,900 to $197,000. The initial franchise fee is $10,000, and multiple factors will determine the investment cost (for example, the store’s location and building changes).

How to turn a business into a franchise?

The next step to converting your business into a franchise is to put a screening process in place. You don’t want to allow anyone and everyone to open a franchise. Most businesses have strict rules and restrictions as to who will represent their brand via a franchise. You want to make sure the person you are talking to has the financials to create the business and has the same vision for the business as you do. Sit down and carefully consider what qualifications you would be looking for in a business owner who wants to open a franchise with you.

What is the last step to take when converting a business into a franchise?

The last step to follow when converting a business into a franchise is simply to be prepared for change. Running a franchise organization is very different from running a business, even if you do have a few locations. You may still be running your businesses while vetting potential owners interested in joining the franchise family. You may also want to continue to help your franchises grow and reach their goals, as their success is ultimately yours. Your life will change, so be ready.

What Are the Franchise Laws and What Is a Franchise Disclosure Document?

Franchising is regulated and requires compliance with federal and state franchise laws.

Does My FDD Have to Be Registered or Filed?

The answer depends on where you will be offering and selling franchises. At the federal level, the FDD is not registered or filed with a government agency. Although your FDD must comply with federal law and the Federal Franchise Rule, compliance is self-regulating, which means that it’s up to you and your franchise lawyer to make sure that your FDD is properly prepared and issued. At the state level, in the franchise registration states, your FDD must be registered with the designated state regulator before you can offer or sell a franchise in that state. In the franchise filing states, you must make certain filings with the designated state regulator before offering or selling a franchise in those states. In all other states, you may offer and sell franchises as long as your FDD is current and in compliance with federal law.

How Long Should It Take to Franchise My Business?

Typically, franchising your business takes from 90 to 120 days. Depending on unique factors related to your business or industry, there could be variations. A lot also depends on who you are working with and your internal team.

Do I Have to Work with a Franchise Lawyer?

If you are going to franchise the right way, you need to work with a lawyer who specializes in franchising and who is experienced in working with new and emerging franchisors like you.

Can a Franchise Developer or Consultant Prepare My FDD Instead of a Franchise Lawyer?

No. Your FDD is a legal document that requires the integration of federal and state-specific franchise laws and regulations and should only be prepared by a qualified franchise lawyer.

How Do I Get Started?

By reading this guide, you’ve already taken the first step! Now that you have a solid foundation as to what franchising is all about and the steps involved, start building the right team to help support and guide you in franchising your business .

How long do you have to give FDD to franchisees?

It’s required by federal and state law and is the legal foundation for your franchise. You are required to give prospective franchisees your FDD no less than 14 days before signing any agreement with a franchisee or accepting any payments from a franchisee.

Choose The Right Brand For You

Franchise Qualification Process

• If you’re wondering how to convert a business to a franchise, the first large step is to qualify as a franchise owner. Here is a breakdown of the qualification process to become a Tide Cleaners franchise owner: 1. Initial Contact – You will first need to request more information by filling out an initial request form here. A Tide franchise represen...

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What to Expect from Tide Cleaners

Business Conversion Costs